In this article, we will discuss the 5 Under-the-Radar AI Stocks to Buy in 2026. For deeper discussion and analysis, read 10 Under-the-Radar AI Stocks to Buy in 2026.
5. iBio, Inc. (NASDAQ:IBIO)
Number of Hedge Fund Holders: 16
On June 8, Raymond James initiated coverage of iBio, Inc. (NASDAQ:IBIO) with an Outperform rating and a $5 price target, highlighting the company’s emerging obesity-focused pipeline and attractive risk-reward profile. The firm pointed to IBIO-600, which recently entered clinical development, as well as IBIO-610, a follow-on candidate that may differentiate itself through higher levels of Activin E inhibition compared with competing INHBE-targeting approaches. According to Raymond James, the company’s valuation does not fully reflect the potential of its pipeline, particularly as demand for innovative obesity and cardiometabolic therapies continues to expand.
Earlier, on June 2, iBio, Inc. (NASDAQ:IBIO) announced the dosing of the first participant in its Phase 1 clinical trial evaluating IBIO-600, marking a major milestone for the company. The candidate is iBio’s lead obesity and cardiometabolic asset and represents the company’s first program to enter human clinical testing. The achievement formally transitions iBio from a preclinical biotechnology company to a clinical-stage developer, providing investors with a key catalyst that could generate additional value as clinical data emerges over the coming quarters.
iBio, Inc. (NASDAQ:IBIO) is an AI-driven biotechnology company focused on discovering and developing precision antibody therapies for obesity, diabetes, cardiometabolic diseases, and oncology indications. Founded in 2008 and headquartered in San Diego, California, the company combines artificial intelligence-driven drug discovery tools with advanced biologics development capabilities to identify novel therapeutic candidates targeting large and underserved healthcare markets.
4. Veritone, Inc. (NASDAQ:VERI)
Number of Hedge Fund Holders: 19
On June 4, Veritone, Inc. (NASDAQ:VERI) announced that its advanced artificial intelligence solutions are being utilized by the Cold Case Foundation to assist in the re-examination of the JonBenet Ramsey investigation. The company’s AI-powered tools are helping investigators analyze large volumes of information more efficiently, demonstrating the practical application of Veritone’s technology in complex law enforcement and forensic investigations. The collaboration also provides a high-profile example of how artificial intelligence can enhance modern criminal justice efforts by uncovering insights from previously difficult-to-analyze data sets.
A few days earlier, on June 1, UBS assumed coverage of Veritone, Inc. (NASDAQ:VERI) with a Neutral rating and a $2.50 price target, reduced from $6. While the firm acknowledged Veritone’s position as an AI software provider that helps organizations extract value from unstructured data, it remains cautious regarding the timing and predictability of certain large data refinery contracts. UBS noted that achieving sustained profitability remains a key factor that investors will monitor as the company continues to scale its platform and customer base.
Veritone, Inc. (NASDAQ:VERI) is an enterprise artificial intelligence company centered around its proprietary aiWARE operating system, which transforms audio, video, text, and other unstructured data into actionable intelligence. Founded in 2014 and headquartered in Irvine, California, the company serves clients across media, entertainment, public sector, legal, and commercial markets through a growing suite of AI-powered analytics and automation solutions.
3. Innodata Inc. (NASDAQ:INOD)
Number of Hedge Fund Holders: 20
On June 4, Wedbush raised its price target on Innodata Inc. (NASDAQ:INOD) to $120 from $100 while maintaining an Outperform rating. The firm cited growing confidence in the company’s ability to sustain robust revenue growth through fiscal 2026 and beyond, driven by increasing demand for its products and services that support artificial intelligence development. Wedbush believes Innodata’s offerings have become increasingly essential to the training and optimization of advanced AI models, positioning the company to benefit from continued investment across the AI ecosystem.
Previously, on May 14, Wedbush increased its price target on Innodata Inc. (NASDAQ:INOD) to $100 from $80 following what it described as a standout first-quarter performance and a strong outlook. The firm also applied a higher valuation multiple, reflecting greater confidence in the company’s long-term growth runway. Wedbush continues to view Innodata as one of the more compelling beneficiaries of the accelerating adoption of generative AI technologies and maintains its Outperform rating on the shares.
Innodata Inc. (NASDAQ:INOD) is a global data engineering company that develops and deploys generative and traditional artificial intelligence solutions. Founded in 1988 and headquartered in Ridgefield Park, New Jersey, the company provides services including data collection, annotation, model evaluation, and AI safety testing, while also operating software platforms focused on healthcare and media intelligence applications.
2. Mitek Systems, Inc. (NASDAQ:MITK)
Number of Hedge Fund Holders: 21
On May 13, Mitek Systems, Inc. (NASDAQ:MITK) announced that its Verified Identity Platform is now available through the FICO Marketplace, expanding access to its identity verification and fraud prevention technologies. The integration enables enterprises to more easily deploy trusted identity solutions within existing decision-making workflows while leveraging artificial intelligence, analytics, and data services. Management emphasized that embedding identity intelligence directly into enterprise risk processes is increasingly important as fraud threats become more sophisticated and AI-driven.
Earlier, on May 7, Mitek Systems, Inc. (NASDAQ:MITK) reported second-quarter revenue of $54.84 million, exceeding consensus expectations of $52.59 million. The company also delivered record revenue and profitability, supported by 18% year-over-year growth in its software-as-a-service business as customers processed more transactions through Mitek’s platform to combat AI-enabled fraud. Encouraged by strong customer demand and expanding relationships with major financial institutions, management raised its full-year outlook and projected third-quarter revenue above analyst expectations.
Mitek Systems, Inc. (NASDAQ:MITK) is a global software company specializing in digital identity verification and fraud prevention technologies. Founded in 1986 and headquartered in San Diego, California, the company’s solutions enable businesses to securely verify identities, authenticate documents, and streamline digital onboarding processes across financial services, fintech, and other regulated industries.
1. Lantronix, Inc. (NASDAQ:LTRX)
Number of Hedge Fund Holders: 24
On June 8, Canaccord initiated coverage of Lantronix, Inc. (NASDAQ:LTRX) with a Buy rating and a $10.50 price target, citing the company’s position as a provider of Edge AI and Internet of Things solutions across several rapidly growing markets. The firm highlighted Lantronix’s expertise in systems-on-module, edge AI development kits, routers, modems, engineering services, and video processing technologies. According to Canaccord, the company’s diversified product portfolio and exposure to military drones, smart cities, industrial automation, and enterprise networking create multiple avenues for future growth.
Previously, on May 20, Safe Pro announced progress in its collaboration with Lantronix, Inc. (NASDAQ:LTRX) to integrate AI-powered threat detection capabilities into Lantronix’s System-on-Module platform for robotic edge processing applications. The partnership is focused on developing embeddable chipsets capable of enabling real-time video and sensor-data analysis for drones and autonomous systems without relying on cloud connectivity. The initiative expands the addressable market for both companies by targeting defense, security, and commercial autonomy applications where rapid on-device decision-making is increasingly critical.
Lantronix, Inc. (NASDAQ:LTRX) is a provider of secure Edge AI and Industrial Internet of Things solutions that help organizations connect, manage, and monitor mission-critical equipment. Founded in 1989 and headquartered in Irvine, California, the company delivers hardware, software, and SaaS platforms serving industries including defense, enterprise IT, industrial automation, transportation, and smart-city infrastructure.
While we acknowledge the potential of LTRX as an under-the-radar AI stock, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LTRX and that has 100x upside potential, check out our report about this cheapest AI stock.
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