Micro/Small Cap AI Stocks Index Down 17% MTD; Still Up 101% YTD

TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

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Most AI & related (AI&R) stocks trade for hundreds of dollars per share yet there are a number of less expensive micro/small cap AI&R stocks (i.e., stocks with market capitalizations above $50M but less than $2B) flying under the radar that warrant your consideration. As you will see below, 80% of the constituents in our Index trade for under $5/share (officially referred to as "penny" stocks) and, as such, provide wider exposure to the sector with less money invested. The index (see below) has shown considerable weakness since the end of July but remains UP 100.8% YTD.


The munKNEE Micro/Small Cap AI Stocks Index

Our new munKNEE Micro/Small Cap AI Stocks Index consists of 10 micro/small cap AI&R stocks (average market capitalization of $297M) with

  • MTD price changes ranked in descending order,
  • price changes since they peaked in July,
  • YTD price changes (all as of last Friday),
  • descriptions of their business, and
  • recent news in the media.
  1. Rekor Systems (REKR): No Change MTD; UP 8.1% since July; UP 134.2% YTD
  2. Verses AI (VRSSF): DOWN 8.0% MTD; DOWN 40.8% since July; UP 95.7% 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 that operates under a user’s direction and on their behalf, searching, filtering, and summarizing information across multiple data sources.
    • Market Capitalization: $124M
    • Read: The BEST A.I. Penny Stock Is VERSES AI
  3. Rigetti Computing (RGTI): DOWN 9.8% MTD; DOWN 45.5% since July; UP 64.4% YTD
  4. BigBear.ai (BBAI): DOWN 13.9% MTD; DOWN 35.3% since July; UP 94.0% YTD
  5. SoundHound AI (SOUN): DOWN 14.9% MTD; DOWN 39.6% since July; UP 72.7% YTD
  6. Digimarc (DMRC): DOWN 16.4% MTD; DOWN 8.2% since July; UP 102.7% YTD
  7. GSI Technology (GSIT): DOWN 16.6% MTD; DOWN 48.5% since July; UP 30.6% YTD
    • GSIT designs, develops, and markets semiconductor memory solutions and has partnered with the United States Air and Space Force to explore high-performance edge processing using its Gemini® APU to unleash the potential of various AI applications, including inference and high-performance computing workloads.
    • Market Capitalization: $65M
    • Read: GSI Technology Receives $1.25M Award From The Space Development Agency 
  8. Innodata (INOD): DOWN 19.8% MTD; DOWN 41.7% since July; UP 131.6% YTD
  9. Evolv Technologies (EVLV): DOWN 21.6% MTD; DOWN 41.4% since July; UP 74.8% YTD
  10.  Applied Digital Corporation (APLD): DOWN 24.8% MTD; DOWN 50.2% since July; UP 154.9% YTD 
    • APLD launched its AI Cloud services in May, 2023, that will provide high-performance computing power for AI applications; has signed agreements with three (3) major customers in the last 4 months worth $640M including an agreement with Hewlett Packard in July to make its supercomputers accessible through its AI cloud service and achieved “Elite Partner” status in the NVIDIA Partner Network in August.
    • Market Capitalization: $514M
    • Read: Applied Digital Launches Cloud Service to Empower AI Applications

The above 10 stocks have an average market capitalization of $297M, an average share price of $2.84 (when the outlier DMRC [$27.16/share], is excluded) and are DOWN 17.0% MTD, DOWN 27.7% since the end of July and UP 100.8%, on average, YTD.


Conclusion

In deciding which, if any, of the above stocks you should invest in, also ask yourself the following 3 questions:

  1. Which companies have the potential of becoming major suppliers to any of the major AI developers?
  2. Which companies are developing or already have in place, AI products/applications that have the potential of becoming the next big thing?
  3. Which companies have AI technology, or technology in development, that makes them prime acquisition targets for one of the major AI tech companies?

...and if you find the right answers you could be well-positioned to generate outstanding returns going forward.


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Disclosure: None

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