5 Best Small Cap AI Stocks To Buy Now

1. Nerdy Inc. (NYSE:NRDY)

Market Capitalization as of July 29: $811.22 million

Number of Hedge Fund Holders: 22

Nerdy Inc. (NYSE:NRDY) is an education technology company that provides online learning services and resources. Formerly known as “Varsity Tutors,” Nerdy Inc. (NYSE:NRDY) offers a platform where students can access personalized tutoring, test preparation, homework help, and other educational content across a wide range of subjects. By leveraging AI, the company can match each student with the ideal tutor, tailoring the selection to their individual requirements. Furthermore, in early 2023, Nerdy Inc. (NYSE:NRDY) revealed its plans to introduce two new AI-driven products and integrate ChatGPT into its services.

Insider Monkey’s database of 943 hedge funds shows that 22 hedge funds had stakes in Nerdy, Inc. (NYSE:NRDY) as of the end of the first quarter.

Here is what Baron Opportunity Fund has to say about Nerdy, Inc. (NYSE:NRDY) in its Q4 2021 investor letter:

“Nerdy Inc. operates a digital learning platform in the U.S. that provides live online tutoring in multiple formats, including one-on-one and small-to-large groups. The offering includes K-12 courses, college, professional, GMAT, SAT, and other prep. Though bookings for future classes remained healthy, many sessions were delayed from the fourth quarter as families opted to take longer holiday trips and kids resumed afterschool activities, making it more difficult to schedule tutoring, resulting in weaker-than-projected recognized revenues. Given near-term uncertainty, a short-term tax loss, and other investment opportunities, we chose to exit the position.”

See also 15 Best Artificial Intelligence (AI) Stocks to Buy and The Future of Artificial Intelligence.