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Introduction

In March, the average market capitalization of the 10 small cap AI stocks we analyze was just $521M, the average stock price was $6.70/share and, while 5 of the 10 stocks were up in March, the average stock price in the Index was DOWN 17.4%. For the most part, this is a small-cap index, with just 3 microcaps (although 2 more are on the verge, if they continue to drop), and SoundHoundAI (SOUN) still edging toward mid-cap status if it can recapture its recent growth mode.

The 10 stocks in the munKNEE Small Cap AI Stocks Index were in bubble mode in December going up 17.3%, on average, but the bubble began to deflate with the new year and is now down 17.4% YTD.

Our Small Cap AI Stocks Index

The performances of the 10 stocks in the Index are ranked below in descending order as to their performances in March, YTD and since the category took off at the end of October, 2023, along with their latest news, commentary and/or analysis where available:

1. D-Wave Quantum (QBTS): up 10.3% in March; up 131.8% YTD; up 183.3% in last 5 months
   • QBTS develops and delivers quantum computing systems, software, and services worldwide.
   • Market Capitalization: $326M
   • Latest Stock Price: $2.04
   • Latest news, commentary and/or analysis:
     • Wall Street Analysts See D-WAVE QUANTUM as a Buy: Should You Invest?
2. Verses AI (VRSSF):  down 0.9% in March; down 8.6% YTD; up 7.1% in last 5 months
   • 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: $157M
   • Latest Stock Price: $1.05
   • Latest news, commentary and/or analysis: None
3. Rekor Systems (REKR): down 3.8% in March; down 31.2% YTD; down 16.7% in last 5 months
   • REKR leverages AI, machine learning, and holistic data to support the intelligent infrastructure for smart mobility.
   • Market Capitalization: $195M
   • Latest Stock Price: $2.29
   • Latest news, commentary and/or analysis:
     • Rekor Systems Earnings: A Year of Substantial Growth 
4. Innodata (INOD):  down 10.8% in March; down 18.9% YTD; down 12.0% in last 5 months
   • INOD provides AI-enabled software platforms and managed services for AI data annotation, AI digital transformation, and industry-specific business processes.
   • Market Capitalization: $190M
   • Latest Stock Price: $6.60
   • Latest news, commentary and/or analysis:
     • Innodata announced the release of Intelligent Insights™, a new generative AI-powered media intelligence feature
5. Evolv Technologies (EVLV):  down 6.7% in March; down 5.7% YTD; down 4.5% in last 5 months
   • EVLV screens people for threats without sacrificing the visitor experience.
   • Market Capitalization: $677M
   • Latest Stock Price: $4.45
   • Latest news, commentary and/or analysis:
     • NYC will test AI gun detectors on the subway
6. Applied Optoelectronics (AAOI):  down 12.6% in March; down 27.7% YTD; up 87.9% in last 5 months 
   • AAOI provides fiber-optic access network products for the cable broadband, internet data center, telecom, and fiber-to-the-home markets.
   • Market Capitalization: $532M
   • Latest Stock Price: $13.96
   • Latest news, commentary and/or analysis:
     • Director Che-wei Lin Acquires 31,370 Shares of Applied Optoelectronics
7. Rigetti Computing: (RGTI): down 18.6% in March; up 218.8% YTD; up 44.3% in last 5 months
   • RGTI builds quantum computers and the superconducting quantum processors.
   • Market Capitalization: $242M
   • Latest Stock Price: $1.53
   • Latest News, Commentary and/or Analysis:
     • Rigetti Computing Reports Mixed Results Amid Strategic Advances in Quantum Computing
8. SoundHoundAI (SOUN): down 20.6% in March; up 177.8% YTD; up 270.4% in last 5 months 
   • • • SOUN offers voice AI solutions that let businesses offer conversational experiences to their customer in 25 different languages.
       • Market Capitalization: $1.8B
       • Latest Stock Price: $5.89
       • Latest News, Commentary and/or Analysis:
         • SoundHound AI CEO and 10% Owner Keyvan Mohajer Sells 31,665 Shares
         • SoundHound AI COO Michael Zagorsek Disposes of 24,105 Shares
9. Digimarc Corporation (DMRC):  down 22.5% in March; down 24.8% YTD; up 4.8% in last 5 months
   • DMRC software provides digital identifiers designed to address counterfeiting, product authenticity, recycling accuracy, and supply chain traceability.
   • Market Capitalization: $578M
   • Latest Stock Price: $27.18
   • Latest news, commentary and/or analysis:
     • Director Milena Alberti-Perez Sells Shares of Digimarc Corp.
10. BigBear.ai (BBAI):  down 33.9% in March; up 4.2% YTD; up 61.4% in last 5 months
    • BBAI provides AI and machine learning to assist customers in aggregating, interpreting, and synthesizing data to enable real-time decision-making capabilities.
    • Market Capitalization: $497M
    • Latest Stock Price: $2.05
    • Latest news, commentary and/or analysis:
      • BigBear.ai Announces $54M Net Loss of $21.3M in Q4 2023

Summary

The average market capitalization of the above 10 largest small cap AI stocks was just $521M, the average stock price was $6.70/share and, while 5 of the 10 stocks were up in March, on average, the average stock price in the Index was down 17.4% in March. That being said, 7 of the 10 stocks are still higher than they were at the end of October, 2023,, and the 10 are up 25.3%, on average, since then.

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