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There are a large number of micro/small cap AI & related (AI&R) stocks with market capitalizations between $100M and $700M flying under the radar that warrant your consideration. As you will see below, 70% of the 10 constituents in the munKNEE Micro/Small Cap AI Stocks Index trade for under $5/share (officially referred to as "penny" stocks) and, as such, provide exposure to the sector with less money invested. The index (see below) was UP 13.5% last week and is now UP 175.5% 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 $397M) with last week's price changes ranked in descending order, YTD price changes, descriptions of their business, and recent news in the media.

1. Applied Optoelecronics (AAOI): UP 34.2% last week; UP 578.2% YTD
   • a leading provider of fiber-optic access network products for the cable broadband, internet datacenter, telecom and fiber-to-the-home (FTTH) markets
   • Market Capitalization: $ 453M
   • Read: Applied Optoelectronics Reports Third Quarter 2023 Results
2. SoundHound AI (SOUN): UP 23.6% last week; UP 70.2% YTD
   • SOUN offers voice AI solutions that let businesses offer conversational experiences to their customer in 25 different languages.
   • Market Capitalization: $551M
   • Read: SoundHound AI Reports Record Third Quarter, Adjusted EBITDA Improves 57% Year Over Year
3. Rigetti Computing (RGTI): UP 18.3% last week; UP 51.2% YTD
   • RGTI has developed the industry’s first multi-chip quantum processor for scalable quantum computing systems and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform.
   • Market Capitalization: $155M
   • Read: Rigetti Computing Reports Third Quarter 2023 Results
4. BigBear.ai (BBAI): UP 17.7% last week; UP 146.5% YTD
   • BBAI provides AI and machine learning to assist customers in aggregating, interpreting, and synthesizing data to enable real-time decision-making capabilities.
   • Market Capitalization: $282M
   • Read: BigBear.ai Announces Third Quarter 2023 Financial Results
5. Evolv Technologies (EVLV); UP 16.0% last week; UP 70.5% YTD
   • EVLV provides AI-based weapons detection for security screening to help make places safer.
   • Market Capitalization: $636M
   • Read: Evolv Technology Reports Record Third Quarter Financial Results
6. Digimarc (DMRC): UP 11.2% last week; UP 85.0% YTD
   • DMRC provides ways to add multi-layered and machine-readable identifiers to customer digital assets including ownership, copyright, authenticity, provenance, and more.
   • Market Capitalization: $690M
   • Read: Digimarc Reports 54% Increase in Annual Recurring Revenue in Q3 2023
7. Innodata (INOD): UP 9.4% last week; UP 192.8% YTD
   • INOD provides AI data preparation services as well as AI model deployment and integration services and signed an agreement with its fourth Big Five technology customer in August to support their generative AI development initiatives.
   • Market Capitalization: $257M
   • Read: Innodata Reports Third Quarter 2023 Results and Signing New Big Tech for Generative AI Development
8. Rekor Systems (REKR): UP 6.0% last week; UP 84.5% YTD
   • REKR leverages AI, machine learning, and holistic data to support the intelligent infrastructure for smart mobility.
   • Market Capitalization: $189M
   • Read: Rekor Systems Inc (REKR) Reports Record Q3 2023 Results with Strong Revenue Growth
9. Verses AI (VRSSF): No Change last week; UP 74.0% 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: $126M
   • Read: VERSES AI Announces SimWell Joins the Genius™ Beta Program
10.  Applied Digital Corporation (APLD): DOWN 13.0% last week; UP 119.6% 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: $447M
    • Read: Applied Digital Reports Fiscal First Quarter 2024 Financial Results

The above 10 stocks have an average market capitalization of $379M, an average share price of $4.30 when the outlier DMRC of $34.10 is excluded) and they were UP 13.5% last week, on average, and are UP 175.5% YTD, on average.

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