5 Small-Cap AI Stocks

1. NETGEAR, Inc. (NASDAQ: NTGR)

Number of Hedge Fund Holders: 16

Topping the list of the 10 small-cap AI stocks is NETGEAR, Inc. (NASDAQ: NTGR), a California-based network system provider that was founded in 1996. The small-cap AI company markets home and business WiFis, powerline, switches, and network storage. In May 2021, NETGEAR, Inc.’s Orbi and Nighthawk product lines won an international product design award from Red Dot.  

The company has a market cap of $1.7 billion. The company’s revenue in the first quarter of 2021 increased 38.3% to $317.9 million, up from $230 million in the first quarter of 2020. Strong demand for Wi-Fi 6 products was the primary driver of revenue growth. In the first quarter, the company shipped roughly 4.1 million systems, including 2.7 million wireless nodes. The company had $363.5 million in cash and cash equivalents as of March 28, 2021, with $361.3 million in total current liabilities. NETGEAR expects revenues of $305 million to $320 million in the second quarter of 2021, up from $300 million to $315 million the previous quarter. The 52-week price range of NETGEAR, Inc. (NASDAQ: NTGR) is $23.20 – $46.38. On April 22, Florida-based investment banking firm Raymond James maintained an Outperform rating on NETGEAR, Inc., with a price target of $48 per share. Shares of NTGR jumped 52% over the past twelve months. 

At the end of the first quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $38 million in NETGEAR, Inc. (NASDAQ: NTGR). Out of the hedge funds being tracked by Insider Monkey, Arrowstreet Capital is a leading shareholder in NETGEAR, Inc. with 1.4 million shares worth more than $15.1 million.

You can also take a peek at 10 Best Stocks that will Benefit from Biden’s $6 Trillion Plan and 10 Best Passive Income Stocks in 2021.

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