10 Best Small Cap AI Stocks to Buy According to Short Sellers

5. Evolv Technology (NASDAQ:EVLV)

Market Cap as of August 26: $641.23 million

Number of Hedge Fund Holders: 19

Short % of Shares Outstanding as of July 31: 8.66%

Evolv Technology (NASDAQ:EVLV) uses AI to develop safer and faster security technology. It designs devices used for scanning people for weapons, and other threats accurately, without the need for invasive manual pat-downs, reducing wait times. The company’s technology can also be integrated into existing security infrastructure anywhere ranging from small businesses to giant corporations. The company added 84 new customers this quarter.

Evolv Technology (NASDAQ:EVLV) generated a revenue of $25.54 million in Q2 2024, representing a 28.83% year-over-year increase. The earnings per share were $0.02 and beat expectations by $0.14.

There was a 60% sequential increase in the number of Evolv Express units sold to education in this quarter. In August, Evolv Technology (NASDAQ: EVLV) secured a patent from the US Patent and Trademark Office for its innovative technology used in the Evolv Express, a leading concealed weapons detection system.

Deployed in over a thousand locations worldwide, the company detects an average of 500+ firearms per day. It expects to sell subscription-based products to new and existing customers, driving recurring revenue. Evolv Technology (NASDAQ: EVLV) expects 25% revenue growth by the end of 2024, and given its use in a diverse range of organizations, ranging from schools to casinos, it is likely to achieve this goal. This is why it’s one of the best small-cap AI stocks to buy now. 19 hedge funds hold long positions in the stock as of Q2 2024.