Introduction
Micro- and small-cap AI-related stocks jumped in price this week after going DOWN 10% last week in reaction to the August ISM manufacturing index that reported figures that came in below consensus expectations/ That raised fears about the strength of the economy and the greater likelihood that that the Federal Reserve might cut interest rates when it meets next week. That negative sentiment dissipated this week with all of the constituents but one in our MunAiMarkets Micro/Small Cap AI Stocks Portfolio going UP – and by an average of 15.0%!
Our Micro/Small Cap AI Stocks Portfolio
Below are how the 10 largest micro/small AI stocks (i.e., stocks with market capitalizations above $100M but less than $2B) performed w/e Sept. 13th, in descending order, their market caps, the extent of their short interest which, simply put, is a measure of how many investors are betting that a stock’s price will fall and any related news contributing to their price changes.
- Applied Optoelectronics (AAOI): UP 23.7% this week
- AAOI provides fiber-optic access network products for the cable broadband, internet data center, telecom, and fiber-to-the-home markets.
- Market Capitalization: $594M
- Short Interest: 25.4% (unchanged)
- Related News:
- BigBear.ai (BBAI): UP 22.5% this week
- provides AI and machine learning to assist customers in aggregating, interpreting, and synthesizing data to enable real-time decision-making capabilities.
- Market Capitalization: $388M
- Short Interest: 8.4% (unchanged)
- Related News: Nothing specific
- D-Wave Quantum (QBTS): UP 14.8% this week
- develops and delivers quantum computing systems, software, and services worldwide.
- Market Capitalization: $201M
- Short Interest: 10.9% (up from 10.2%)
- Related News:
- Digimarc Corporation (DMRC): UP 14.7% this week
- DMRC software provides digital identifiers designed to address counterfeiting, product authenticity, recycling accuracy, and supply chain traceability.
- Market Capitalization: $613M
- Short Interest: 9.2% (unchanged)
- Related News: Nothing specific
- Rigetti Computing: (RGTI): UP 13.3% this week
- RGTI builds quantum computers and the superconducting quantum processors.
- Market Capitalization: $157M
- Short Interest: 15.1% (unchanged)
- Related News:
- Innodata (INOD): UP 11.6% this week
- INOD provides AI-enabled software platforms and managed services for AI data annotation, AI digital transformation, and industry-specific business processes.
- Market Capitalization: $449M
- Short Interest: 11.2% (unchanged)
- Related News:
- SoundHound AI (SOUN): UP 11.5% this week
- SOUN offers voice AI solutions that let businesses offer conversational experiences to their customer in 25 different languages.
- Market Capitalization: $1,750M
- Short Interest: 23.8% (unchanged)
- Related News:
- Evolv Technologies (EVLV): UP 10.5% this week
- EVLV screens people for threats without sacrificing the visitor experience.
- Market Capitalization: $621M
- Short Interest: 8.6% (unchanged)
- Related News: Nothing specific
- Rekor Systems (REKR); UP 7.0% this week
- REKR leverages AI, machine learning, and holistic data to support the intelligent infrastructure for smart mobility.
- Market Capitalization: $107M
- Short Interest: 19.0% (unchanged)
- Related News: Nothing specific
- Verses AI (VRSSF): DOWN 4.3% this week
- 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: $108M
- Short Interest: N/A
- Related News: Nothing specific
Summary
Our Micro/Small Cap AI Stocks Portfolio was UP 15.0% this week after having gone DOWN 10.0% the previous week. The Portfolio went DOWN 5.4% in August but is already UP 3.5% MTD and is now only DOWN 3.8% YTD. The average market capitalization of the 10 constituents is $499M.
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