MunAiMarkets – Small/Mid-Cap Ai Stocks Portfolio UP 84% In November – Here’s Why

An Introduction

The artificial intelligence 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 but, unfortunately, most investors focus on the mega/large cap AI stocks that trade for hundreds of dollars per share. There are, however, a few less expensive, and potentially more explosive, small-cap stocks that will get you wider exposure to that growth with less money invested and they are constituents in the MunAiMarkets small/midcap Ai stocks portfolio

The MunAiMarkets Small/Mid-Cap Ai Stocks Portfolio

The MunAiMarkets Small/Mid Cap Ai Stocks Portfolio consists of 7 small-cap and 2 mid-cap Ai stocks (average market capitalization of $1,351M) and the 9 constituents are presented below in descending order for November, along with their business focus, individual market capitalizations and reasons for their price changes, as follows:

1. Quantum Computing Inc. (QUBT): UP 524.1% in November
   • Focus: developing photonic qubits that offer a number of key advantages over trapped ions or superconducting qubits
   • Market Capitalization: $835M
   • Reasons for Increase:
     1. Breakthrough in Quantum Algorithms: The company announced a significant breakthrough in quantum algorithms, which reshaped industry prospects.
     2. Strategic Partnerships: Quantum Computing Inc. secured a strategic partnership with the University of Texas at Austin, which included a substantial order for their innovative lithium niobate photonic chips.
     3. Positive Market Sentiment: The overall market sentiment towards quantum computing companies improved, driving up stock prices in the sector.
     4. Analyst Ratings: Financial analysts issued positive ratings for QUBT, with a consensus price target indicating a forecasted upside of 25.93% from the current price.
2. D-Wave Quantum (QBTS): UP 187.7% in November
   • Focus: develops and delivers quantum computing systems, software, and services worldwide.
   • Market Capitalization: $670M
   • Reasons for Increase:
     1. Positive Analyst Ratings: Several financial analysts upgraded their ratings for QBTS. For instance, B. Riley Securities issued a “Buy” rating with a price target of $4.50, and Needham set a price target of $2.50
     2. High Volume of Call Options: There was a notable increase in the purchase of call options for QBTS, indicating strong investor confidence.
     3. Company Developments: D-Wave Quantum reported progress on its 4,400 qubit Advantage 2 processor and secured a significant pilot partnership with NTT DOCOMO.
     4. Market Sentiment: The overall market sentiment towards quantum computing companies improved, driving up stock prices in the sector.
3. Applied Optoelectronics (AAOI): UP 164.0% in November
   • Focus: provides fiber-optic access network products for the cable broadband, internet data center, telecom, and fiber-to-the-home markets.
   • Market Capitalization: $3,203M
   • Reasons for Increase:
     1. Strong Earnings Report: AAOI reported earnings that exceeded analyst expectations, which boosted investor confidence.
     2. Positive Market Sentiment: The overall market sentiment towards fiber-optic networking products and the tech sector improved, contributing to the rise in AAOI’s stock price.
     3. Analyst Upgrades: Several analysts upgraded their ratings and price targets for AAOI, citing the company’s strong growth prospects and upcoming catalysts.
     4. Strategic Initiatives: AAOI announced new strategic initiatives and partnerships that are expected to drive growth and innovation.
4. Rigetti Computing: (RGTI): UP 129.5% in November
   • Focus: builds quantum computers and the superconducting quantum processors.
   • Market Capitalization: $879
   • Reasons for Increase:
     1. Positive Analyst Ratings: Financial analysts issued positive ratings for RGTI, with B. Riley Securities initiating a “Buy” rating and raising their price target.
     2. Technological Advancements: Rigetti introduced a new modular system architecture and demonstrated progress with its quantum chips, achieving high fidelity on its 9-qubit chips.
     3. Strategic Partnerships: The company secured partnerships with Riverlane, NQCC, and collaborations on quantum machine learning with NVIDIA and Quantum Machines.
     4. Market Sentiment: The overall market sentiment towards quantum computing companies improved, driving up stock prices in the sector.
5. Innodata (INOD): UP 108.0% in November
   • Focus: provides AI-enabled software platforms and managed services for AI data annotation, AI digital transformation, and industry-specific business processes.
   • Market Capitalization: $1,170M
   • Reasons for Increase:
     • Strong Earnings Report: Innodata reported earnings that exceeded analyst expectations, which boosted investor confidence.
     • Positive Market Sentiment: The overall market sentiment towards tech and AI services companies improved, contributing to the rise in INOD’s stock price.
     • Strategic Partnerships: Innodata announced new strategic partnerships and collaborations, which are expected to drive growth and innovation.
     • Analyst Upgrades: Several analysts upgraded their ratings and price targets for INOD, citing the company’s strong growth prospects and upcoming catalysts.
6. Evolv Technologies (EVLV): UP 88.4% in November
   1. Focus: screens people for threats without sacrificing the visitor experience.
   2. Market Capitalization: $674M
   3. Reasons for Increase:
      • Positive Analyst Ratings: Several analysts upgraded their ratings and price targets for EVLV, citing strong growth prospects and upcoming catalysts.
      • Increased Options Trading: There was unusually high options trading activity, with investors acquiring a large number of call options.
      • Strategic Initiatives: EVLV announced new strategic initiatives and partnerships that are expected to drive growth and innovation.
      • Market Sentiment: Overall market sentiment towards AI-based security screening companies improved, contributing to the rise in EVLV’s stock price
7. SoundHound AI (SOUN): UP 83.9% in November
   • Focus: offers voice AI solutions that let businesses offer conversational experiences to their customer in 25 different languages.
   • Market Capitalization: $3,280M
   • Reasons for Increase:
     1. Strong Earnings Report: reported impressive third-quarter results, with revenue soaring by 89% year-over-year to $25.1 million, beating analyst expectations.
     2. Positive Market Sentiment: There was increased market enthusiasm for conversational AI, which drove investor interest in SoundHound.
     3. Strategic Partnerships: announced the successful deployment of its AI agent, Amelia, at Apivia Courtage and expanded its voice AI integration with Kia.
     4. Raised Revenue Outlook: The company raised its full-year revenue outlook for 2024 and 2025, projecting $82-$85 million in 2024 and $155-$175 million in 2025
8. BigBear.ai (BBAI):UP 44.7% in November
   • Focus: provides AI and machine learning to assist customers in aggregating, interpreting, and synthesizing data to enable real-time decision-making capabilities.
   • Market Capitalization: $709M
   • Reasons for Increase:
     1. Positive Analyst Ratings: Several analysts upgraded their ratings and price targets for BBAI, citing strong growth prospects and upcoming catalysts.
     2. Increased Options Trading: There was unusually high options trading activity, with investors acquiring a large number of call options.
     3. Golden Cross Event: BBAI experienced a “golden cross” event, where its 50-day simple moving average broke above its 200-day simple moving average, indicating a potential bullish breakout.
     4. Positive Earnings Outlook: The company’s earnings outlook for the current quarter improved, with no earnings estimate revisions lower and several revisions higher
9. Digimarc Corporation (DMRC): UP 9.4% in November
   • Focus: provides digital identifiers designed to address counterfeiting, product authenticity, recycling accuracy, and supply chain traceability.
   • Market Capitalization: $726M
   • Reasons for Increase: Strong Earnings Report: Digimarc reported impressive third-quarter results, with revenue soaring by 89% year-over-year to $25.1 million, beating analyst expectations.
     1. Positive Market Sentiment: There was increased market enthusiasm for digital watermarking and AI technologies, which drove investor interest in Digimarc.
     2. Strategic Partnerships: Digimarc announced new strategic partnerships and collaborations, which are expected to drive growth and innovation.
     3. Raised Revenue Outlook: The company raised its full-year revenue outlook for 2024 and 2025, projecting significant growth

Summary

The MunAiMarkets Small/Mid Cap AI Stocks Portfolio, with an average market capitalization of $1,351M for the 9 constituents, went UP x% 84.3% in November and is now UP 93.3% YTD.

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