15 Best Small Cap AI Stocks to Buy Right Now

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4. Impinj, Inc. (NASDAQ:PI)

Number of Hedge Fund Holders: 37

​Impinj, Inc. (NASDAQ:PI) is a technology company specializing in RAIN RFID (Radio-Frequency Identification) solutions that connect physical items to digital systems. Its platform includes RFID tags, readers, and software designed to track and manage inventory, assets, and shipments in real-time. The company’s solutions integrate with enterprise systems to support applications like item-level inventory management and asset tracking. PI is exploring AI to enhance data analytics, automate decision-making, and enable intelligent edge processing, supporting future growth in smart supply chains and IoT environments.

Impinj, Inc. (NASDAQ:PI) achieved its fourth consecutive year of double-digit revenue growth in 2024, with total revenue reaching $366.1 million, representing a 19% YoY increase. The company demonstrated strong market performance in retail apparel, general merchandise, and supply chain and logistics, with endpoint IC unit volumes growing 34% over 2023. Two major market catalysts emerged in 2024: the initiation of item-level food tagging and the introduction of Impinj Gen2X, which significantly expanded enterprise solution capabilities. However, the company faces near-term challenges, including geopolitical uncertainty, tariffs, changes in label-partner share allocations, aggressive label price shopping, and shorter ordering cycles that have disrupted partner bookings.

Despite these temporary headwinds, Impinj, Inc. (NASDAQ:PI) maintains a strong E-family reader IC order book across all large partners and geographies. Looking forward, management anticipates solid industry RAIN label expansion in 2025, driven by growth in retail apparel, general merchandise, and supply chain and logistics, supported by modest but growing food volumes. BL is engaged with two large grocery chains, with potential endpoint IC unit volumes larger than any previous program. The company delivered record adjusted EBITDA and EPS, successfully resolved patent litigation, and maintained its market-leading position through product innovation.

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