We recently published a list of Complete List of All AI Companies Under $2 Billion Market Cap. In this article, we are going to take a look at where CEVA, Inc. (NASDAQ:CEVA) stands against other AI companies under $2 billion market cap.
It’s clear that AI holds immense promise but it comes with significant risks. Some of the concerns that the market has include overreliance on a few key players, shifts in demand toward smaller competitors, and the broader impact of AI-driven market trends on earnings and valuations. While AI offers opportunities, managing risks such as customer concentration, economic headwinds, and market volatility will be crucial for its sustainable growth and integration.
Navigating AI Expectations and Market Dynamics
On CNBC ‘Fast Money,’ a discussion between traders highlighted concerns about elevated expectations for AI, especially in the chip market, with NVDA as a prime example. Past patterns in the semiconductor giant’s stock suggest potential declines, with customer concentration being a significant risk. Some believe demand for high-end chips could shift to smaller semiconductor companies. They also discussed that broader market performance might improve as other sectors gain traction, especially during earnings season, which is expected to influence investor sentiment more than AI and GLP-1 trends.
They mentioned that the key risks for earnings include the strong U.S. dollar, rising rates, and policy uncertainties, which may impact large-cap companies. While recent PPI data offered some relief, the bond market remains firm, with 10-year yields approaching 5%. Expectations for CPI and PCE figures are mixed, with potential reacceleration seen as a headwind for markets in a higher rate environment. Earnings and economic data were considered critical factors to watch by the traders.
Our Methodology
For this article, we scoured our database as well as several ETFs and media reports to find all possible AI stocks under $2 billion. We then listed the stocks in ascending order of their market cap. We also added the hedge fund sentiment around each stock which was taken from Insider Monkey’s database of 900 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).
A close-up of a digital signal processor, showing its exceptional processing capabilities.
CEVA, Inc. (NASDAQ:CEVA)
Market Capitalization: $798 Million
Number of Hedge Fund Holders: 17
CEVA, Inc. (NASDAQ:CEVA) provides silicon and software solutions for semiconductor and OEM companies globally. Its portfolio includes products for 5G mobile and infrastructure, such as vector digital signal processors, open RAN platforms, and modems for various markets like fixed wireless, industry 4.0, robotics, and AR/VR. The company also offers wireless IoT platforms, including Bluetooth, Wi-Fi, and ultra-wideband solutions. In the AI and sensing space, CEVA provides neural processing units, AI DSPs, sensor hubs, and software for applications like imaging, speech recognition, and spatial audio. These technologies are licensed to OEMs for system-on-chip designs.
On January 7, CEVA (NASDAQ:CEVA) announced that its award-winning Ceva-NeuPro-Nano Embedded AI NPUs have gained strong traction in the AIoT and MCU markets, with several customer wins and an improved development studio supporting the entire software design cycle for AI and embedded applications. The Ceva-NeuPro-Nano 32 and 64 MAC NPUs offer strong performance, energy efficiency, and cost-effectiveness, making them ideal for AI applications in voice, vision, and sensing.
They handle various tasks such as data processing, running neural networks, and controlling code. With a high Coremark/MHz score of 6.0, these NPUs are well-suited for semiconductor companies and manufacturers using embedded AI. Since the launch of Ceva-NeuPro-Nano, the company has reached important milestones, augmenting the development experience for customers, including the release of Ceva-NeuPro Studio and the integration of Ceva-NeuPro-Nano with Edge Impulse Studio.
Overall, CEVA ranks 15th on our list of the 59 AI companies under $2 billion market cap. While we acknowledge the potential of CEVA 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 time frame. If you are looking for an AI stock that is more promising than CEVA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
