By Lorimer Wilson
Introduction
The artificial intelligence and related (AI&R) sector is going to play a major role in the future of technology and investing in it should generate fantastic returns over the next decade. That being said, however, most investors focus on the mega/large cap AI&R stocks that trade for hundreds of dollars per share yet there are a few less expensive, and potentially more explosive, micro- and small- cap AI&R stocks (i.e., stocks with market capitalizations above $100M but less than $2B) that will get you wider exposure to that growth with less money invested.
To that end, we have created a portfolio of 10 such stocks which it will monitor on a bi-weekly basis to keep you informed of their stock performances (weekly, MTD, YTD) and latest pertinent news, analyses and/or commentary under the Micro/Small Cap AI Stocks Portfolio banner.
The Micro/Small Cap AI Stocks Portfolio
- Applied Optoelectronics (AAOI): UP 16.9% last week; UP 18.8% in August; DOWN 41.3% YTD
- AAOI provides fiber-optic access network products for the cable broadband, internet data center, telecom, and fiber-to-the-home markets.
- Market Capitalization: $464M
- Latest news, commentary and/or analysis:
- Digimarc Corporation (DMRC): DOWN 0.4% last week; DOWN 10.3% in August; DOWN 20.6% YTD
- DMRC software provides digital identifiers designed to address counterfeiting, product authenticity, recycling accuracy, and supply chain traceability.
- Market Capitalization: $613M
- Latest news, commentary and/or analysis:
- SoundHound AI (SOUN): DOWN 2.8% last week; DOWN 3.9% in August; UP 130.7% YTD
- SOUN offers voice AI solutions that let businesses offer conversational experiences to their customer in 25 different languages.
- Market Capitalization: $1,750M
- Latest news, commentary and/or analysis:
- Evolv Technologies (EVLV): DOWN 3.2% last week; UP 13.5% in August; DOWN 16.5% YTD
- EVLV screens people for threats without sacrificing the visitor experience.
- Market Capitalization: $621M
- Latest news, commentary and/or analysis:
- Rigetti Computing: (RGTI): DOWN 5.2% last week; DOWN 10.7% in August; UP 91.7% YTD
- RGTI builds quantum computers and the superconducting quantum processors.
- Market Capitalization: $175M
- Latest news, commentary and/or analysis:
- D-Wave Quantum (QBTS): DOWN 5.6% last week; UP 1.0% in August; UP 14.8% YTD
- develops and delivers quantum computing systems, software, and services worldwide.
- Market Capitalization: $203M
- Latest news, commentary and/or analysis:
- BigBear.ai (BBAI): DOWN 7.6% last week; UP 5.3% in August; DOWN 25.7% YTD
- provides AI and machine learning to assist customers in aggregating, interpreting, and synthesizing data to enable real-time decision-making capabilities.
- Market Capitalization: $398M
- Latest news, commentary and/or analysis:
- Innodata (INOD): DOWN 9.7% last week; DOWN 10.7% in August; UP 112.3% YTD
- INOD provides AI-enabled software platforms and managed services for AI data annotation, AI digital transformation, and industry-specific business processes.
- Market Capitalization: $501M
- Latest news, commentary and/or analysis:
- Rekor Systems (REKR): DOWN 10.7% last week; DOWN 33.1% in August; DOWN 62.5% YTD
- REKR leverages AI, machine learning, and holistic data to support the intelligent infrastructure for smart mobility.
- Market Capitalization: $110M
- Latest news, commentary and/or analysis:
- Verses AI (VRSSF): DOWN 13.3% last week; DOWN 20.7% in August; DOWN 43.5% YTD
- VRSSF offers a voice and text-based personal AI assistant designed to learn about its users in order to better organize, manage, and optimize their digital life.
- Market Capitalization: $98M
- Latest news, commentary and/or analysis:
Summary
Our Micro/Small Cap AI Stocks Portfolio was DOWN 1.5% last week, went DOWN 5.4% during August and is now DOWN 7.1% YTD. The average market capitalization of the 10 constituents is $493M.
Thank you for reading the above article. I will update it weekly. Now, as a reward, here is a link to Money, Money, Money—It’s a Rich Man’s World!
