15 Small-Cap Stocks Poised to Outperform in 2025

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3. Palladyne AI Corp. (NASDAQ:PDYN)

Shares of Palladyne AI Corp. surged by more than 1,286.96 percent to close at $9.57 apiece, with its stellar performance fueled by news on December 30 that its drones successfully tracked moving targets for the first time.

Palladyne’s Pilot AI platform was used on a third-party small drone, identifying and prioritizing targets of interest. Once the drone identified a target, Pilot AI enabled it to continue tracking the target as it moved.

Palladyne co-founder and CTO Dr. Denis Garagic said that he expects the company to finish commercialization of Palladyne Pilot by the end of the first quarter of 2025 and believes small, economical drones will be able to offer the same level of artificial intelligence as bigger, multimillion-dollar drone systems.

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