In an interview with CNBC on November 25, Dan Ives, Global Head of Technology Research at Wedbush Securities said that he sees the AI sector entering a new phase, describing it as the start of a “fourth industrial revolution.” He believes the AI market is still in its early stages but will continue to grow rapidly. Ives highlighted software companies, which he believes will be key players in AI’s future, especially by 2025.
Apart from a handful of skeptics, most experts and analysts see AI as the most revolutionary technology of the 21st century. There has also been a rise in AI startups. According to a June report by Morgan Stanley, the tech IPO market is picking up after a two-year pause. High interest rates had previously dampened IPO activity, but demand is returning, especially for companies using AI to improve business operations or customer experiences. While challenges like high capital costs remain, the AI-driven growth in tech and healthcare sectors is fueling the IPO revival.
Read Also: 15 AI Stocks on Wall Street’s Radar and Jim Cramer’s List of 7 Energy Stocks for the Trump Trade.
Anticipating the Next Wave of Startup IPOs
One of the most promising startups the market is watching is Anthropic AI, an AI company focused on developing safe and reliable large language models. It has received funding from big names, including Amazon. The partnership designates AWS as Anthropic’s primary cloud and training partner, with a focus on improving AI capabilities through collaboration on machine learning hardware development.
Additionally, AI chipmaker Cerebras is seeking to go public with a valuation of around $7 to $8 billion, building on strong AI infrastructure demand. The firm filed for an IPO on September 30. MS expects 10 to 15 tech IPOs in 2024, driven by companies using AI in sectors like technology and healthcare.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we chose 10 AI stocks that have outperformed the S&P 500 over the last 30 days as of November 27. They are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Emerging AI Stocks that Outperformed the Broader Market This Month
10. PROCEPT BioRobotics Corporation (NASDAQ:PRCT)
30-day Stock Price Performance: 7%
PROCEPT BioRobotics Corporation (NASDAQ:PRCT) specializes in surgical robotics for urology, offering the AquaBeam Robotic System and Aquablation therapy for treating benign prostatic hyperplasia (BPH). The company’s AI-driven solutions provide image-guided, minimally invasive procedures to improve patient outcomes in urologic surgery.
While PROCEPT’s (NASDAQ:PRCT) stock has seen quite a bit of volatility over the last 30 days, its stock performance got a significant boost after a strong earnings report on October 28 and the stock has been up over 40% since the announcement.
After the earnings, TipRanks reported that Josh Jennings from TD Cowen maintained a Buy rating on the company stock with a $99 price target, owing to strong third-quarter results driven by higher system and consumable sales. The company showed solid growth in both U.S. and international markets, especially in the UK, and improved its financial outlook. The positive revision in guidance, increased gross margin, and reduced net loss contributed to Jennings’s favorable view of PROCEPT’s (NASDAQ:PRCT) future performance.
9. Verint Systems Inc. (NASDAQ:VRNT)
30-day Stock Price Performance: 11.5%
Verint Systems Inc. (NASDAQ:VRNT) delivers advanced customer engagement solutions globally. In 2023, the company introduced a new AI-driven platform designed to improve analytics and streamline customer interactions across several channels. Verint (NASDAQ:VRNT) has underperformed the market significantly in 2024. However, its stock performance has been going well since the start of November, primarily due to positive news surrounding the company’s strong performance in the AI-powered customer engagement market.
On October 31, the company was named a market leader in ISG Research’s “Contact Center Advanced” Buyers Guide, recognized for its strong contact center tools and advanced AI-driven solutions. Later on November 5, it secured an $11 million contract with a leading bank to deploy its AI-powered Agent Copilot Bot, assisting 6,500 agents in a contact center handling 400 million minutes of calls annually.
On November 11, Verint (NASDAQ:VRNT) announced that a leading telecommunications company saved $10.5 million annually by using its Intelligent Virtual Assistant (IVA) to manage half of its 7 million annual calls. The AI-powered solution handled 80% of billing inquiries and prevented 3.5 million calls from requiring live agents. More details in our 15 AI News That Broke The Internet article.
On November 19, the company announced that its AI-powered Intelligent Voice Assistant (IVA) replaced a legacy IVR system for a U.S. travel company, boosting self-service call containment from 10% to 50% in just one month. This change resulted in $10 million in annual savings by improving intent recognition and integrating with CRM and other backend systems.
8. Iveda Solutions, Inc. (NASDAQ:IVDA)
30-day Stock Price Performance: 14.5%
Iveda Solutions, Inc. (NASDAQ:IVDA) provides AI and digital transformation technologies, including deep-learning video analytics, IoT platforms, and smart power solutions. Its products serve sectors like airports, commercial buildings, and data centers, with applications in surveillance, smart infrastructure, and AI-driven systems.
Iveda (NASDAQ:IVDA) was trading near its 52-week low a few weeks ago and is down nearly 62% year-to-date. However, the company’s stock price has shown a positive recovery over the last 30 days, especially since November 15. It could be likely due to recent news about the company’s advancements in AI.
On November 14, Iveda (NASDAQ:IVDA) introduced an updated version of IvedaAI, a video analytics platform that combines object recognition with generative AI to offer advanced, scalable, and cost-efficient video intelligence. The new version, available in beta in January 2025, includes a conversational assistant, automatic camera configuration, and improved AI capabilities for smart cities, educational campuses, retail, and other sectors. The company promises improved traffic monitoring, school security, and inventory management with automated, adaptable video intelligence.
7. POET Technologies Inc. (NASDAQ:POET)
30-day Stock Price Performance: 29%
POET Technologies Inc. (NASDAQ:POET) designs and manufactures optoelectronic solutions, such as photonic integrated components and the POET Optical Interposer, which enable high-speed data transmission and processing and are crucial for AI systems, especially in data centers and IoT devices.
POET (NASDAQ:POET) reported strong Q3 earnings on November 14. While the company reported a $12.7 million net loss, it raised $25 million through private placements to support innovation and growth in the AI networking sector. The company stock is up over 28% since its earnings release.
6. Duos Technologies Group, Inc. (NASDAQ:DUOT)
30-day Stock Price Performance: 30%
Duos Technologies Group, Inc. (NASDAQ:DUOT) provides AI-driven solutions for real-time applications, including automated railcar inspections and logistics systems, along with consulting and software services.
Duos (NASDAQ:DUOT) stock has shown quite a bit of volatility, not just over the last 30 days but the whole year. Nevertheless, the stock is up 100% year-to-date as of November 27. On November 22, The Fly reported that Michael Latimore of Northland raised the company’s price target to $10 from $5.50, maintaining an Outperform rating. The increase follows the company’s Q3 report (November 20), highlighting expanded growth opportunities, including a new edge data center and power business with a $42M contract.
5. TSS, Inc. (NASDAQ:TSSI)
30-day Stock Price Performance: 31%
TSS, Inc. (NASDAQ: TSSI) offers integration technology services, supporting AI-driven infrastructure in data centers, network facilities, and security operations centers. TSS (NASDAQ:TSSI) stock has been on an upward trajectory since May, and the stock was trading OTC markets before uplisting to NASDAQ on November 14. However, the company reported its earnings on November 14 and has been down in the charts since that day. While the company stock is up more than 31% over the last month, its stock has declined by 19% between November 14 and 27 likely due to insider sales. Insider Monkey’s data shows that the company’s CEO, SVP, and COO sold a significant amount of shares between November 19 and 25.
4. WidePoint Corporation (NYSE:WYY)
30-day Stock Price Performance: 35%
WidePoint Corporation (NYSE:WYY) delivers Technology Management as a Service (TMaaS) solutions for government and businesses, offering telecom lifecycle management, identity management, mobile security, and digital billing. It also provides IT services, including cybersecurity, cloud services, AI implementation, and professional support.
WidePoint (NYSE:WYY) reported strong financial performance on November 13, outperforming market estimates. The results also prompted some analysts to raise the stock price target. TipRanks reported on November 14 that Scott Buck from H.C. Wainwright maintained a Buy rating on WidePoint with a $7 price target, owing to strong financial performance and growth prospects.
According to the analyst, the company exceeded Q3 revenue expectations, driven by its MobileAnchor product and key contracts like U.S. Navy Spiral 4. Future growth is supported by a strong contract pipeline, improved margins, and operating leverage. WidePoint (NYSE:WYY) stock is up nearly 34% since November 15, as of November 27.
3. Tempus AI, Inc (NASDAQ:TEM)
30-day Stock Price Performance: 45.3%
Tempus AI, Inc (NASDAQ:TEM) offers platforms for data analysis, test management, and AI tools for oncology and other fields. The company collaborates with partners like United Therapeutics on AI-driven healthcare solutions.
Tempus (NASDAQ:TEM) reported its earnings on November 4, after which the stock climbed nearly 75% between November 5 and 11. However, some analysts believe that the stock is overvalued. For example, The Fly reported on November 11 that Stifel downgraded Tempus AI to Hold from Buy, raising the price target to $65. The stock’s 100% rise and high valuation, along with concerns about a possible lowered 2025 outlook prompted the change.
2. Nerdy, Inc. (NYSE:NRDY)
30-day Stock Price Performance: 47%
Nerdy, Inc. (NYSE:NRDY) provides an AI-driven platform for live online learning, offering personalized tutoring and educational solutions across various subjects and formats. While analysts are neutral on Nerdy (NYSE:NRDY) stock, it performed quite well over the last few days and its stock is up over 64% between November 14 and 28. The company also received an NYSE notice for non-compliance as its stock price averaged below $1.00 over 30 days, on November 13. The company said that it plans to address this, potentially through a reverse stock split, while maintaining operations and its NYSE listing.
According to our data, there was also a substantial amount of insider purchases by CEO Charles Cohn between November 19 and 25. Cohn purchased over 3.1 million shares of the company during this period.
1. Innodata Inc. (NASDAQ:INOD)
30-day Stock Price Performance: 85%
Innodata Inc. (NASDAQ:INOD) focuses on AI data preparation, data engineering, medical record processing, and marketing communications, serving industries such as banking, insurance, technology, media, and finance. Innodata’s (NASDAQ:INOD) stock price performance is highly credited to its Q3 financial performance reported on November 7. Between November 7 and 8, the company’s stock price was up nearly 76%. Its GAAP EPS outperformed the estimates by a huge margin of $0.38, posting an EPS of $0.51. It also generated a revenue of $52.22 million, up over 135% year-over-year, in addition to a 337% rise in adjusted EBITDA.
Management increased 2024 revenue growth guidance to 88%- 92% and reported $26.4 million in cash with no debt. Based on this performance, Maxim Group’s analyst Allen Klee raised the company’s price target to $54 from $38 and maintained a Buy rating on the stock. Klee also sees the company as a leader in the AI sector.
While we acknowledge the potential of Innodata Inc. (NASDAQ:INOD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than INOD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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