Complete List of All 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.

A computer screen showcasing Artificial Intelligence and Machine Learning algorithms at work.

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).

59. Ontrak, Inc. (NASDAQ:OTRK)

Market Capitalization: $7.3 Million

Number of Hedge Fund Holders: N/A

Ontrak, Inc. (NASDAQ:OTRK) is a telehealth and AI-driven healthcare company that offers services aimed at improving the management of chronic conditions. Its technology platform identifies individuals whose chronic diseases could improve through behavior changes, suggests effective care paths, and helps guide them through the necessary care. The OnTrak program addresses conditions such as diabetes, hypertension, and heart disease by combining medical and psychosocial interventions through in-person or telehealth channels, along with care coaching and community care coordination.

On January 8, Ontrak, Inc. (NASDAQ:OTRK) announced an agreement to offer its behavioral health solutions to Intermountain Health’s Medicare Advantage members in Nevada. The company will provide its AI-powered Wholehealth+ solution, which identifies high-risk members with chronic conditions and unaddressed behavioral health issues.

The solution engages these members with care coaching and facilitates access to timely treatment, aiming to improve clinical outcomes and reduce costs. The agreement is expected to add around 2,000 members to Ontrak’s outreach pool starting in mid-February 2025.

58. T Stamp Inc. (NASDAQ:IDAI)

Market Capitalization: $9.9 Million

Number of Hedge Fund Holders: 3

T Stamp Inc. (NASDAQ:IDAI) specializes in identity authentication solutions for government, enterprise, and peer-to-peer markets globally. The company uses artificial intelligence, machine learning, biometrics, cryptography, and data mining to detect and prevent identity fraud, safeguard sensitive data, and improve digital service accessibility. Its technology combines Irreversibly Transformed Identity Token and various biometric or identifying data sources.

On January 6, T Stamp (NASDAQ:IDAI) announced a strategic partnership with Qenta Inc. As part of the agreement, Qenta is spinning off its Goldstar KYC technology into a new subsidiary, QID Technologies LLC, with Trust Stamp holding a 10% stake in the new entity. Trust Stamp has also granted QID a non-exclusive license for its AI-powered identity technologies in exchange for a $1 million license fee, payable in three installments over Q1 2025.

Additionally, QID will contract with Trust Stamp for business and product development services related to identity and privacy solutions, with monthly service fees starting January 1, 2025, capped at $3.6 million annually. As a 10% shareholder in QID, Trust Stamp expects to receive a net cash inflow of $3.3 million from the projected $3.6 million in billed revenue.

57. Iveda Solutions, Inc. (NASDAQ:IVDA)

Market Capitalization: $11.5 Million

Number of Hedge Fund Holders: 3

Iveda Solutions, Inc. (NASDAQ:IVDA) offers cloud-based video AI search and surveillance technologies designed to safeguard people, places, and assets. The company’s solutions integrate instant intelligence into existing infrastructure, supporting the digital transformation of cities globally. By using IoT platforms with smart sensors and devices, Iveda addresses public safety, security, elderly care, energy efficiency, and environmental preservation.

Iveda (NASDAQ:IVDA) concluded 2024 with five major product launches, including LevelNOW™, IvedaAI™ Forensics Desk, IvedaAI™ Cloud, IvedaESS, and VEMO to improve AI and IoT-powered solutions for industries like security, retail, and law enforcement. LevelNOW™ monitors liquid storage with patented sensors, while IvedaAI™ Cloud offers cost-effective video analytics. The Forensics Desk aids law enforcement with facial recognition and video search, and IvedaESS provides portable surveillance for temporary needs. VEMO integrates AI with wearable body cameras, featuring real-time analytics.

Furthermore, Iveda previewed an upgraded IvedaAI™ platform, integrating object recognition with Large Language Models and Vision Language Models, scheduled for full rollout in Spring 2025.

56. Webuy Global Ltd (NASDAQ:WBUY)

Market Capitalization: $12.45 Million

Number of Hedge Fund Holders: 1

Webuy Global Ltd (NASDAQ:WBUY) is an e-commerce company serving Southeast Asia, providing a wide range of products such as food, beverages, personal care items, and travel packages. The company is increasingly incorporating AI-powered solutions to enhance its operations.

In late December 2024, Webuy (NASDAQ:WBUY) highlighted the success of its Disney cruise campaign, driven by its Micky1.0 Travel AI on WhatsApp. The campaign employed Webuy’s digital marketing expertise to direct leads to Micky1.0, which efficiently handled customer inquiries, provided real-time quotes, and offered personalized recommendations before passing qualified leads to travel consultants for deal closure. From December 10th to 23rd, 2024, the Disney cruise campaign achieved the following financial results: Receivable Booking Value (RBV) of SGD 465,527 and Booking Revenue of SGD 162,202.

55. Gaxos.ai Inc. (NASDAQ:GXAI)

Market Capitalization: $13.05 Million

Number of Hedge Fund Holders: 1

Gaxos.ai Inc. (NASDAQ:GXAI) develops AI applications across sectors such as mental and physical wellness, coaching, and gaming. Its offerings include Gaxos, a gaming platform that designs, acquires, and manages traditional games while integrating unique game mechanisms. Formerly known as The NFT Gaming Company, Inc., the company rebranded to Gaxos.ai in January 2024, with a mission to reshape the interaction between humans and AI. Its focus extends to advancing health, longevity, and entertainment through innovative AI solutions.

In December 2024, Gaxos.ai (NASDAQ:GXAI) announced the successful integration of Meshy 4 into its AI solution for game developers and publishers, Gaxos Labs. The Meshy 4 update improves the platform, enabling artists, designers, and developers to refine mesh topology, control polycounts, and generate high-quality 3D models more efficiently. With Meshy 4’s advanced generative geometry, users can easily switch between quad- or triangle-based meshes to meet the specific requirements of their projects.

54. Datasea Inc. (NASDAQ:DTSS) 

Market Capitalization: $15 Million

Number of Hedge Fund Holders: N/A

Datasea Inc. (NASDAQ:DTSS) provides innovative products and solutions in two key sectors: acoustic high-tech and 5G-AI multimodal digitalization. The company’s advanced R&D infrastructure supports its offerings, including a cloud platform powered by AI for its 5G multimodal digital segment. Datasea uses cutting-edge technologies like ultrasonic and directional sound to address virus prevention and human infection control, while also exploring applications in medical ultrasonic cosmetology.

In November 2024, Datasea (NASDAQ:DTSS) announced that it expects its revenue for the fiscal year ending June 30, 2025, to reach around $90 million, a significant increase of 275% from $24 million in fiscal year 2024. By October 31, 2024, the company had already earned approximately $31.7 million in the first four months of fiscal 2025, including $21.1 million in the first quarter and $10.6 million in October 2024.

CEO Zhixin Liu attributed the growth mainly to strong performance in its 5G digital applications business, which has benefitted from large contracts. The company also reported progress in its acoustic high-tech sector, with high-margin products aimed at promoting healthy living environments. Datasea’s AI-driven technologies provide a competitive edge across both business segments.

53. Bridgeline Digital, Inc. (NASDAQ:BLIN)

Market Capitalization: $18.54 Million

Number of Hedge Fund Holders: 3

Bridgeline Digital, Inc. (NASDAQ:BLIN) is a marketing technology company that provides a range of products and services, including HawkSearch, Celebros Search, Woorank, and Bridgeline TruPresence. These solutions help businesses with site search, recommendations, personalization, SEO audits, and web content management. The company also offers tools like Bridgeline Unbound for managing digital experiences and OrchestraCMS for custom solutions on Salesforce.

Bridgeline (NASDAQ:BLIN) saw strong growth in fiscal 2024 as it signed over 75 new HawkSearch licenses and increased its Annual Contract Value to $6.2 million. HawkSearch now powers over 1,000 websites, including major clients like HP.com and CED. The platform’s success is credited to AI features like Smart Search and Generative AI. In fiscal Q1 2025, Bridgeline continued its momentum with new contracts, adding $2.5 million in new business. The company is expanding its B2B presence with clients such as Grizzly and JonDon, while advancing its AI capabilities, including Conversational Search and Smart Filters. Strategic partnerships with Optimizely, BigCommerce, and others further support its growth.

52. Soluna Holdings, Inc. (NASDAQ:SLNH)

Market Capitalization: $21.4 Million

Number of Hedge Fund Holders: 3

Soluna Holdings, Inc. (NASDAQ:SLNH) operates data centers focused on sustainability as it uses renewable energy and efficient hardware. The company specializes in compute-intensive tasks such as AI applications and cryptocurrency mining and provides AI cloud infrastructure that supports enterprise-level performance and scalability, helping innovators execute complex workloads while minimizing their environmental impact.

On January 6, Soluna (NASDAQ:SLNH) announced a new partnership with Atlas Cloud, a top provider of AI-powered video processing solutions which marked the second customer acquired through Soluna’s collaboration with Hewlett Packard Enterprise GreenLake and further strengthened its position in sustainable, high-performance AI computing.

Under the one-year agreement, the company will supply Atlas with 64 Nvidia H100 GPUs, with potential for expansion. This GPU cluster will support Atlas’s AI video processing tasks, delivering energy-efficient scalability and exceptional reliability. John Belizaire, CEO of Soluna, commented:

“Building on our first AI customer, this second engagement demonstrates the strength of our collaboration with HPE GreenLake. We’re proud to be powering Atlas’s advanced video processing workloads and expanding our reach in the AI ecosystem.”

51. DarioHealth Corp. (NASDAQ:DRIO)

Market Capitalization: $23 Million

Number of Hedge Fund Holders: 4

DarioHealth Corp. (NASDAQ:DRIO) is a digital health company focused on improving chronic condition management through its multi-condition digital therapeutics platform. The platform uses data analytics, AI, and personalized coaching to support diabetes, hypertension, musculoskeletal health, weight management, and behavioral health. By encouraging behavior change, Dario is focusing on empowering individuals and transforming digital healthcare. At the company’s Q3 2024 earnings call, the company’s Chief Commercial Officer, Steven Nelson said:

“With each client engagement, we are also gathering valuable insights that fuel our AI capabilities, enhancing both client experiences and clinical outcomes. As we look ahead, I am excited to build on our momentum, executing with precision and a relentless focus on sustainable long-term growth. Our road map is clear, and we are fully committed to driving transformative impact across the health care landscape, delivering enduring value for our clients and realizing our vision of a healthier, more connected world.”

The company’s CEO, Erez Raphael added:

“Looking ahead, we are also keep investing in AI and data-driven personalization. Our proprietary data enable us to drive innovation in areas like drug discovery, consumer engagement and targeted interventions. By integrating generative AI and micro services, we are creating a new revenue opportunity, further strengthening our ability to activate and engage members effectively and offering unparalleled value to our client.”

50. VCI Global Limited (NASDAQ:VCIG)

Market Capitalization: $34.244 Million

Number of Hedge Fund Holders: 1

VCI Global Limited (NASDAQ:VCIG) is a diversified holding company based in Kuala Lumpur, Malaysia, operating in five core sectors: Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity. In AI, the company offers GPU servers, cloud computing services, and AI solutions, including LLMs.

On January 15, VCI Global (NASDAQ:VCIG) announced it has secured the exclusive distributorship of Secure Encryption Storage Limited (SES) for its AI-powered data security solutions in Malaysia. SES solutions offer advanced features such as real-time threat detection, virus protection, data encryption, and multi-channel backup, and are trusted by over 300 clients, including Fortune 500 companies and government agencies.

With the Malaysian cybersecurity market expected to grow from US$500 million in 2025 to US$800 million by 2029, VCI Global aims to capture 3% of the market and projects revenues of over 15 million in the first two years. The company also plans to expand into other Asian countries, Europe, and the US, providing cutting-edge cybersecurity solutions globally.

49. Lantern Pharma Inc. (NASDAQ:LTRN)

Market Capitalization: $39 Million

Number of Hedge Fund Holders: 3

Lantern Pharma Inc. (NASDAQ:LTRN) uses artificial intelligence, machine learning, and genomic data through its RADR platform to advance precision oncology. The company also offers an ADC therapeutic approach and collaborates with Oregon Therapeutics to optimize a cancer treatment candidate, XCE853, using AI.

In its third quarter 2024 earnings call, Lantern Pharma’s (NASDAQ:LTRN) CEO, Panna Sharma, highlighted the company’s progress in AI-guided drug development, powered by its RADR AI platform. The company is advancing multiple drug programs, including LP-184 and LP-284, with promising clinical data, such as the FDA Fast Track designation for LP-184 in glioblastoma.

AI is central to the success, especially in identifying biomarkers and guiding drug development, like with PTGR1 for LP-184. The company is also using AI to advance antibody-drug conjugates (ADC) and strengthen its position in the oncology field. The company’s AI-driven approach is helping to accelerate drug development and reduce costs.

48. Zepp Health Corporation (NYSE:ZEPP)

Market Capitalization: $42 Million

Number of Hedge Fund Holders: 2

Zepp Health Corporation (NYSE:ZEPP) specializes in smart wearables and health technology, offering products under the Amazfit, Zepp Clarity, and Zepp Aura brands. Its Zepp Digital Management Platform leverages AI chips, biometric sensors, and data algorithms to provide 24/7 health insights. The company offers a range of smart bands, watches, and accessories, using AI to analyze and display user data through its Zepp Life and Zepp mobile apps.

Amazfit, a consumer brand of Zepp Health (NYSE:ZEPP), unveiled its newest AI-powered lifestyle smartwatch, the Amazfit Active 2, at CES 2025. The wearable combines style and functionality as it features Zepp Coach Integration, which provides personalized training and running plans. It allows users of all fitness levels to reach goals ranging from 3K runs to marathons. The Zepp Coach is an AI-driven coaching algorithm that delivers customized guidance to support more effective training and recovery.

47. Duos Technologies Group, Inc. (NASDAQ:DUOT)

Market Capitalization: $43.5 Million

Number of Hedge Fund Holders: N/A

Duos Technologies Group, Inc. (NASDAQ:DUOT) is a Florida-based company that designs and deploys intelligent technology solutions across North America. The company offers platforms like Centraco for consolidating data and events, and truevue360 for developing AI algorithms for real-time applications. Main offerings include the Railcar Inspection Portal for automated railcar inspections and the Automated Logistics Information System for gatehouse operations. Duos also provides consulting, software licensing, training, and maintenance services.

On December 19, Duos Technologies (NASDAQ:DUOT) partnered with the Pampa Energy Center to develop high-density Data Center Development Parks in Pampa, Texas, through its subsidiaries Duos Edge AI and Duos Energy. The project will feature up to 500MW of natural gas self-generation and 200MW of wind turbine generation and support four 50MW high-density data centers, with the first expected to be operational by the end of 2025. Duos Energy, in collaboration with Fortress Investment Group, will provide energy through mobile gas turbines and transition to permanent facilities.

Duos Technologies also recently received a U.S. patent for its Oblique Vehicle Undercarriage Examiner, known as obliquevue. The patent, titled “Device to capture high-resolution images of the undercarriage of a freight car,” establishes Duos’ technology as a standard for wayside detection. This innovation furthers railcar inspection processes by improving safety through advanced engineering and AI.

46. Safe Pro Group Inc. (NASDAQ:SPAI)

Market Capitalization: $45.7 Million

Number of Hedge Fund Holders: N/A

Safe Pro Group Inc. (NASDAQ:SPAI) develops personal protective gear, ballistic protection products, and AI-driven drone solutions in the U.S. Its products include ballistic vests, body armor, and explosive ordnance disposal tools. The company’s AI offerings focus on detection, data analysis, and reporting tools for processing drone imagery and support applications like infrastructure inspections, aerial mapping, and public safety. It provides Drone as a Responder solutions, AI-powered analytics, and UAS-related training for sectors including critical infrastructure, telecommunications, public utilities, and emergency services.

On December 30, Safe Pro (NASDAQ:SPAI) announced that Ukraine’s State Special Transport Service (SSTS) has officially requested $5 million to acquire up to 50 Safe Pro AI-powered Drone Demining packages for its trained units. These packages, developed in collaboration with SSTS, are designed to advance the efficiency and safety of demining operations and aid in terrain surveys for planning and construction.

The system features Safe Pro’s SpotlightAI threat detection platform with integrated 2D/3D mapping, which has already analyzed over 921,471 drone images in Ukraine, identifying more than 16,540 explosive remnants of war across 4,219 hectares.

45. Knightscope, Inc. (NASDAQ:KSCP)

Market Capitalization: $52.2 Million

Number of Hedge Fund Holders: N/A

Knightscope, Inc. (NASDAQ:KSCP) designs and deploys autonomous security robots (ASRs) for various sectors in the U.S. Its products include the K3, K5, K1, and K7 ASRs, which use sensors and lasers to navigate environments autonomously for security tasks. The company also provides security and network operations centers for real-time monitoring and data analysis, as well as Knightscope+, a virtual monitoring and response service. Knightscope’s AI-powered solutions are used in industries such as airports, healthcare, education, government, and commercial properties to enhance security and operational efficiency.

Knightscope (NASDAQ:KSCP) announced securing 10 new client agreements within the first 10 days of 2025 for its AI-driven ASR and emergency communication devices. One agreement came from an automotive group in Dallas, Texas, which signed a two-year deal for Knightscope’s K5 ASR to address vandalism, theft, and unauthorized access, opting for the K5 instead of additional fixed cameras. Knightscope also received new and expansion orders for its K1 ECDs, totaling 29 units across Georgia, Massachusetts, Texas, and Virginia.

The devices will advance communication in various locations, including municipalities, colleges, and counties. Additionally, existing clients in Florida, Massachusetts, New Jersey/New York, and North Carolina expanded their deployments, while longtime partner National Safety Systems replenished its inventory of K1 Blue Light Towers in anticipation of future demand.

44. Beamr Imaging Ltd. (NASDAQ:BMR)

Market Capitalization: $58 Million

Number of Hedge Fund Holders: N/A

Beamr Imaging Ltd. (NASDAQ:BMR) offers video encoding, transcoding, and optimization solutions globally, with a focus on software and hardware solutions. The company provides various video compression tools, such as Beamr 4 and Beamr 5 encoders for H.264 and HEVC formats, Beamr JPEGmini for photo optimization, and a hardware solution for video encoding integration into circuits and processors.

In an interview with the Wall Street Transcript, Beamr (NASDAQ:BMR) CEO Sharon Carmel discussed the company’s focus on large-scale video optimization and its AI initiatives. Carmel explained that Beamr’s GPU-accelerated technology not only improves video quality but also uses AI to analyze video content. This dual approach allows the company to run video optimization alongside processes that can identify and understand what is in the video, further strengthening its solutions.

As of December 1, Beamr’s GPU-accelerated video service, Beamr Cloud, is available on AWS Marketplace. This integration makes it easier for customers to access and deploy Beamr’s high-efficiency video solutions. Beamr Cloud improves video operations with AI-driven features, including automatic upgrades to the AV1 format.

43. Inuvo, Inc. (NYSE:INUV)

Market Capitalization: $61.3 Million

Number of Hedge Fund Holders: 3

Inuvo, Inc. (NYSE:INUV) specializes in artificial intelligence for advertising. Its proprietary and patented IntentKey AI technology uniquely identifies and responds to the motivations behind consumer interest in products, services, or brands, without relying on personal consumer data. Its key offerings include IntentKey, an AI-powered system for identifying consumer intent and targeting in-market audiences across various devices and formats, including video, audio, and display ads. Another product, Bonfire, integrates data, analytics, and publishing tools to deliver tailored brand advertising campaigns.

The company uses proprietary AI to target audiences based on intent rather than personal data, and addresses privacy-focused shifts in advertising, such as the elimination of cookies by major browsers like Google and Apple. Inuvo’s strategy focuses on displacing intermediaries in the ad ecosystem through scalable, AI-driven solutions that address challenges like the loss of user-targeting methods.

On January 8, Inuvo (NYSE:INUV) introduced zip code-level audience insights and targeting within its IntentKey AI platform, which enable precise geographic ad campaigns without relying on personal consumer data. The technology analyzes consumer behavior across over 40,000 U.S. zip codes, providing advertisers with insights into the motivations behind consumer interests while offering dynamic reporting on trends across states and communities.

42. Marchex, Inc. (NASDAQ:MCHX)

Market Capitalization: $86.5 Million

Number of Hedge Fund Holders: 5

Marchex, Inc. (NASDAQ:MCHX) is a conversation intelligence company operating in the U.S., Canada, and globally. Its AI-powered solutions include Marketing Edge, which evaluates inbound conversations and connects sales to marketing-driven leads. Another solution is Sonar Business Text Messaging, which is an AI-enabled workflow platform for mobile communication with prospects, customers, and staff. Marchex Platform Services offers APIs that use AI to analyze customer interactions for actionable insights. Spotlight is a company’s AI analytics tool for multi-location businesses.

In late December, 2024, Marchex (NASDAQ:MCHX) announced its partnership with the Microsoft Cloud AI Partner Program and gained the ability to offer its solutions through the Microsoft Azure Marketplace. The collaboration allows the company to drive sales growth by helping customers use their Microsoft cloud investments and expand into new markets and channels.

By combining the power of Azure with Marchex’s AI-driven conversational analytics, which are trained on billions of minutes of conversations, the partnership aims to deliver value and reach at scale. Edwin Miller, CEO of Marchex, commented:

“Partnering with Microsoft allows us to integrate our unique AI capabilities with Microsoft’s Cloud AI scalability and reliability, and deliver unparalleled insights and operational excellence to our customers. This collaboration represents a significant step forward in our mission to optimize customer journey experiences and deliver powerful solutions that transform first-party data into a competitive advantage for our customers.”

41. ZenaTech, Inc. (NASDAQ:ZENA)

Market Capitalization: $106.5 Million

Number of Hedge Fund Holders: N/A

ZenaTech, Inc. (NASDAQ:ZENA) is a technology company focused on AI drones, quantum computing, Drone as a Service (DaaS), and enterprise SaaS solutions for critical business operations. Since 2017, the company has expanded its expertise in software development and drone manufacturing through ZenaDrone, advancing processes like inspection, monitoring, safety, security, compliance, and surveying. Its software solutions are used in law enforcement, healthcare, government, and industrial sectors, while its drones are applied in agriculture, defense, and logistics.

On January 16, ZenaTech (NASDAQ:ZENA) announced that it has finalized the acquisition of Weddle Survey Inc., a land survey engineering company that will serve as the foundation for its DaaS operations in the Northwest US. Weddle Surveying, based near Portland, Oregon, is a well-established firm with a client base of over 200 customers. The company’s CEO, Shaun Passley, Ph.D, said:

“We are thrilled to integrate this acquisition, another step towards our vision for a national DaaS business which will include approximately 20 planned acquisitions, bringing the speed and precision of AI drones to legacy businesses. Weddle Surveying is a profitable company that will add land survey expertise, an established customer base, and revenue to our business. We look forward combining AI drones to the innovation of land surveys, and applying quantum computing and large datasets to improve and better manage in-demand applications like wildfire management.”

40. Roadzen, Inc. (NASDAQ:RDZN)

Market Capitalization: $110.916 Million

Number of Hedge Fund Holders: 6

Roadzen, Inc. (NASDAQ:RDZN) is an insurance technology company focused on transforming auto insurance through advanced AI. Its solutions assist clients in developing products, selling insurance, processing claims, and improving road safety. The company’s offerings include Via, xClaim, StrandD, Global Distribution Network, Drivebuddy AI, and Good Driving, serving a wide range of clients such as insurers, automakers, fleets, brokers, and ridesharing platforms.

The company made several AI partnerships including Bosch to integrate its AI-powered Advanced Driver Assistance System, drivebuddyAI, into Bosch’s mobility solutions. This collaboration furthers Bosch’s logistics platform, L.OS, which optimizes supply chain operations for commercial vehicles. Roadzen’s drivebuddyAI uses cameras and edge computing to monitor driver behavior and detect risks, offering blind spot detection and payload surveillance for trucking fleets.

39. Phunware, Inc. (NASDAQ:PHUN)

Market Capitalization: $111.175 Million

Number of Hedge Fund Holders: N/A

Phunware, Inc. (NASDAQ:PHUN) is a software company that specializes in mobile app solutions with integrated AI capabilities. It provides businesses with tools to create, manage, and optimize custom mobile applications, digital advertising, analytics, and location-based services. Phunware aims to improve mobile engagement by offering scalable and personalized app experiences. The company is focused on expanding its platform to drive the adoption of its AI-powered technologies, monetize its intellectual property, and reintroduce its digital asset ecosystem for both current and new market participants.

Phunware (NASDAQ:PHUN) announced it signed a term sheet, alongside other parties, to acquire a controlling stake in MyCanvass, LLC, which is primarily owned by Campaign Nucleus, a SaaS platform company. The acquisition, valued at $1.02 million, will be paid through a combination of cash and Phunware stock.

Phunware and Campaign Nucleus plan for MyCanvass to be the foundation of a strategic partnership aimed at developing AI-powered canvassing tools and management systems for political and advocacy campaigns. This collaboration will focus on promoting transparency, accountability, and grassroots empowerment. Stephen Chen, CEO, said:

“We are very excited to add the innovative MyCanvass technology platform to our portfolio as we explore solutions that align our technology with both companies shared missions to be true to our core values. Our collaboration will also aim to reduce inefficiencies, enhance campaign and advocacy effectiveness, and enable real-time, personalized voter outreach and engagement through AI and modular solutions.”

38. LivePerson, Inc. (NASDAQ:LPSN)

Market Capitalization: $118.56 Million

Number of Hedge Fund Holders: 6

LivePerson, Inc. (NASDAQ:LPSN) provides conversational AI tools that help businesses communicate with customers through messaging and voice. Its platform supports smooth interactions with features like AI-powered conversation management, insights, and integration. The company works with large businesses, online stores, and public organizations worldwide. It is headquartered in New York.

In May 2024, Avaya and LivePerson partnered to create a unified omnichannel solution combining voice, digital, and AI tools. The integration improved Avaya platforms with LivePerson’s Conversational Cloud for advanced messaging, AI, and analytics without requiring migrations. Main features include improved digital channels, customer interaction insights, and enterprise-safe AI capabilities to enable faster and cost-effective digital transformation.

After the third quarter results in November 202, CEO John Sabino highlighted this partnership and highlighted that it contributes to new bookings, building a strong pipeline with Fortune 500 companies. The company also benefits from generative AI adoption and a new pricing model that has led to larger deals and shorter sales cycles. Sabino emphasized LivePerson’s evolution into a strategic partner for enterprise digital transformation, driven by innovation and customer focus.

Moreover, in October, LivePerson announced new AI tools aimed at improving agent productivity, and customer satisfaction, and measuring the return on investment of AI-driven customer interactions. Features include a unified agent workspace, generative AI tools, and advanced analytics to add to contact centers and customer experiences.

37. Veritone, Inc. (NASDAQ:VERI)

Market Capitalization: $125.76 Million

Number of Hedge Fund Holders: 6

Veritone, Inc. (NASDAQ:VERI) provides AI computing solutions and services across the U.S., U.K., France, Australia, Israel, and India. The company operates aiWARE, an AI operating system that uses machine learning to replicate human cognitive functions, helping users convert unstructured data into structured formats and analyze it for business insights. Veritone also offers media advertising services, including planning, buying, campaign analytics, and verification, catering to advertisers and agencies.

On January 9, Veritone, Inc. (NASDAQ:VERI) introduced Contact Analytics, an advanced feature for its Veritone Contact solution, designed to revolutionize how law enforcement agencies analyze stop data. Built on its aiWARE enterprise AI platform, the tool enables agencies to access fast, detailed analytics and reporting.

Veritone Contact streamlines the collection and reporting of traffic and pedestrian stop data, helping agencies meet legal requirements. Jon Gacek, Veritone’s General Manager for Public Sector, highlighted that Contact Analytics eliminates the need for agencies to wait for end-of-year reports or manually create data summaries, enabling real-time monitoring of trends to improve policies and procedures.

36. Lantronix, Inc. (NASDAQ:LTRX)

Market Capitalization: $135.05 Million

Number of Hedge Fund Holders: 14

Lantronix, Inc. (NASDAQ:LTRX) designs and sells IoT products and services globally. It designs advanced development kits and hardware for AI and machine learning applications. The company has deployed solutions in areas like computer vision, object tracking, facial recognition, handwritten digit recognition, and 3D image generation.

Its products support Qualcomm’s AI Engine and Snapdragon Neural Processing Engine, offering high-performance, low-power deep learning and neural network capabilities. The company also offers IoT systems with wired and wireless connections, power over Ethernet, and secure access for distributed IoT devices. Lantronix provides a SaaS platform for managing IoT deployments and engineering services for product development.

Lantronix (NASDAQ:LTRX) stock has been covered by 5 analysts with all of them maintaining a Buy-equivalent rating on the stock. The average price target of $5.50 represents a 58.5% upside to its stock price on January 15.

35. Rekor Systems, Inc. (NASDAQ:REKR)

Market Capitalization: $140 Million

Number of Hedge Fund Holders: 9

Rekor Systems, Inc. (NASDAQ:REKR) specializes in technology solutions for transportation, public safety, and urban mobility globally. The company uses AI-powered platforms to improve traffic management, roadway data analysis, and incident response. It offers cloud-based applications for citation management and vehicle recognition while providing traffic studies and engineering services.

On January 7, Rekor (NASDAQ:REKR) introduced a new AI-powered Incident Priority Ranking feature at the Transportation Research Board’s 2025 Annual Meeting to strengthen traffic and emergency response operations. This tool prioritizes high-impact roadway incidents in real time, helping operators allocate resources more efficiently and respond quickly to critical events. By reducing the time needed for data collection and decision-making by 60%, the feature improves traffic safety and flow. Rekor continues to innovate with AI solutions aimed at building safer, more efficient infrastructure.

Additionally, on January 6, Rekor Systems announced that the New Mexico Department of Transportation has expanded its use of Rekor Discover and Edge Series systems, following a successful initial deployment in 2024. These AI-powered, video-based traffic analytics solutions offer a safer and more efficient alternative to traditional methods, avoiding the disruptions and risks associated with legacy technologies like rubber tubes and piezo sensors. The systems are easy to install and provide accurate traffic data for infrastructure planning and roadway safety.

34. FiscalNote Holdings, Inc. (NYSE:NOTE)

Market Capitalization: $181.6 Million

Number of Hedge Fund Holders: 13

FiscalNote Holdings, Inc. (NYSE:NOTE) is a leading provider of policy and global intelligence solutions, leveraging advanced AI technology alongside data and expert insights to help organizations manage political and business risks. FiscalNote has developed innovative AI-powered tools that enable customers to track, analyze, and act on legislative and regulatory developments.

On January 15, FiscalNote (NYSE:NOTE) launched PolicyNote, a new policy management solution designed to help global organizations efficiently track, analyze, and respond to legislative, policy, and regulatory changes. PolicyNote uses FiscalNote’s extensive data, proprietary AI technology, and expert policy analysis to add to the effectiveness of policy management.

The AI-powered platform streamlines tasks such as tracking, summarizing, and briefing on policy changes, allowing decision-makers to act faster and more strategically. By combining generative AI with reliable, up-to-date policy data and expert insights, PolicyNote enables businesses to respond to policy shifts in a way that aligns with their goals.

33. Tevogen Bio Holdings Inc. (NASDAQ:TVGN)

Market Capitalization: $213.56 Million

Number of Hedge Fund Holders: 10

Tevogen Bio Holdings Inc. (NASDAQ:TVGN) is a clinical-stage immunotherapy company focused on developing precision T-cell therapies using CD8+ cytotoxic T lymphocytes to treat infectious diseases, cancers, and neurological disorders. The company aims to address unmet medical needs with off-the-shelf, genetically unmodified therapies. The company is revolutionizing AI in the biopharma industry. Tevogen has shown positive safety data in its clinical trials and owns significant intellectual property, including patents related to AI, which support its innovations in immunotherapy and patient accessibility.

In December 2024, Tevogen Bio (NASDAQ:TVGN) filed for a new patent titled “Systems And Methods For Predicting Immunologically Active Peptides With Machine Learning Models,” expanding its intellectual property portfolio. The company launched Tevogen.AI in October 2023 to accelerate drug discovery, development, manufacturing, and patient access, benefiting both its own efforts and other biotech companies.

In May 2024, the company partnered with Microsoft through the Microsoft for Startups program, gaining access to AI expertise and resources. By November 2024, AI-driven machine learning had contributed to target identification for Human Papilloma Virus, marking the beginning of Tevogen Bio’s oncology treatment pipeline. CEO Dr. Ryan Saadi, commented:

“When combining our expertise across biopharma and artificial intelligence, we anticipate becoming a leader in the field with breakthroughs to follow.”

32. Perfect Corp. (NYSE:PERF)

Market Capitalization: $267.86 Million

Number of Hedge Fund Holders: 9

Perfect Corp. (NYSE:PERF) is a Taiwanese company that provides AI and AR-powered software solutions for the beauty, fashion, and skincare sectors globally. Its offerings include tools for AI makeup, skin diagnosis, hairstyle and hair color, jewelry, accessories, nails, men’s grooming, avatars, and text-to-image generation. The company also provides AI photo editing features like background removal, object removal, and image enhancement, along with product recommendation tools. Its YouCam platform apps, such as YouCam Makeup and YouCam Perfect, cater to brand owners and individual consumers.

Perfect (NYSE:PERF) recently partnered with MAISON DELAROM to introduce AI-powered skin analysis technology to the luxury skincare sector. The technology will debut at the Maison & Objet trade show from January 16–20, 2025, and become available in MAISON DELAROM’s Paris showroom on February 1, 2025. Perfect has further expanded its operations by completing its acquisition of Wannaby Inc., a company that specializes in augmented reality and computer vision, offering virtual try-on solutions for the fashion industry. Its platform allows consumers to visualize products like shoes and accessories in real time, which gives a better online shopping experience for global fashion retailers.

31. TSS, Inc. (NASDAQ:TSSI)

Market Capitalization: $268.53 Million

Number of Hedge Fund Holders: N/A

TSS, Inc. (NASDAQ:TSSI) offers technology services to implement, manage, and maintain IT systems for businesses and users in the U.S. The company delivers custom, high-volume solutions that support data centers and drive digital transformation in fields like generative AI. TSS partners with top data center technology providers and handles the deployment of billions of dollars in technology annually.

In December 2024, TSS (NASDAQ:TSSI) signed a multi-year lease for 212,793 square feet at the Georgetown Logistics Park in Georgetown, Texas to relocate its headquarters and expand its facilities to accommodate growth in AI integration. The expansion is driven by increasing demand for AI technologies, following a long-term customer agreement.

In January, the company secured a $20 million credit facility with Susser Bank to support the expansion of its operations. The funds will help develop the new space, with operations expected to begin in early 2025. The credit facility has a five-year term, with interest-only payments for up to six months, after which it converts to a term loan.

30. Richtech Robotics Inc. (NASDAQ:RR)

Market Capitalization: $275.54 Million

Number of Hedge Fund Holders: 1

Richtech Robotics Inc. (NASDAQ:RR) specializes in creating robotic and AI-driven automation solutions for the service industry. The company provides indoor transport, delivery, sanitation, and food and beverage automation through its advanced robotic systems, such as ADAM and ARM worker robots.

Its delivery robot lineup includes Matradee, Matradee X, Matradee L, Richie, and Robbie, while its cleaning solutions feature DUST-E SX and DUST-E MX. Richtech also offers accessories like bus tubs, cup holders, tray covers, magnetic tray cases, smartwatches, and table location systems. It serves industries like restaurants, hotels, casinos, hospitals, senior living centers, retail, factories, and theaters.

At CES, Richtech Robotics showed its advanced service robots for the hospitality and healthcare sectors, including an autonomous delivery robot, as per IoT World Today. Notable exhibits included Adam, an interactive robot for beverage service used in Walmart’s Ghost Kitchens, and Scorpion, an AI-powered one-arm robot for serving drinks in wine and spirits stores. According to Richtech Robotics President Matt Casella, while the company’s robots can perform diverse tasks across industries, their applications in food and beverage are particularly relatable and engaging for the public.

29. Palladyne AI Corp. (NASDAQ:PDYN)

Market Capitalization: $283.36 Million

Number of Hedge Fund Holders: N/A

Palladyne AI Corp. (NASDAQ:PDYN) is a software company that focuses on advancing the functionality of third-party robotic systems, both stationary and mobile. Its AI/ML platform enables robots to observe, learn, and adapt to various environments with minimal programming and training. The platform allows robotic systems to quickly adjust to changes by applying real-time experiences. Palladyne AI serves industries such as manufacturing, logistics, defense, energy, and aerospace.

Palladyne AI (NASDAQ:PDYN) recently announced that the company and Red Cat Holdings, Inc. have successfully completed a flight where multiple Teal drones, equipped with Palladyne Pilot AI software, autonomously collaborated to identify and track objects on the ground. This achievement shows the software’s ability to manage sensors and enable drones to share information despite limited communication. This milestone follows Palladyne AI’s previous demonstration of a single drone autonomously interacting with a small drone’s autopilot. The collaboration between Palladyne AI and Red Cat focuses on advancing situational awareness and reducing the cognitive load on operators.

28. Arbe Robotics Ltd. (NASDAQ:ARBE)

Market Capitalization: $294.6 Million

Number of Hedge Fund Holders: 3

Arbe Robotics Ltd. (NASDAQ:ARBE) is a leading innovator in Perception Radar technology, providing advanced radar solutions critical for driver-assist systems and autonomous driving. The company’s radar is 100 times more detailed than traditional radars, supporting L2+ autonomy and beyond. Arbe’s technology serves a wide range of industries, including automakers, Tier 1 suppliers, and commercial vehicles, enabling better safety and perception through advanced sensing. Arbe’s radar solutions are essential for the growing automotive radar market and play an important role in the advancement of AI-driven autonomous vehicles.

Arbe Robotics Ltd. (NASDAQ:ARBE) is also collaborating with NVIDIA to strengthen free space mapping and AI-driven capabilities for the automotive industry. The company’s ultra-high-definition radar, offering high-resolution, long-range detection in any weather or lighting condition. The radar’s AI processing delivers precise mapping of drivable areas, detects small obstacles, and integrates seamlessly with other sensors. The combined solution with NVIDIA’s DRIVE AGX platform enables advanced driving features, improving vehicle safety and autonomy with real-time, AI-powered perception.

27. SES AI Corporation (NYSE:SES)

Market Capitalization: $313.35 Million

Number of Hedge Fund Holders: 14

SES AI Corporation (NYSE:SES) is revolutionizing electric transportation with its advanced Li-Metal batteries, designed for both land and air applications. The company integrates superintelligent AI into every aspect of its operations, from R&D and materials sourcing to cell design, engineering, manufacturing, and battery health monitoring.

SES AI (NYSE:SES) introduced a groundbreaking AI-enhanced 2170 cylindrical cell for humanoid robotics applications at the 2025 CES Show. The new battery incorporates an electrolyte discovered through SES AI’s Molecular Universe initiative, which is mapping the chemical and physical properties of a vast range of small molecules suitable for battery electrolytes. The innovation stems from SES AI’s collaboration with NVIDIA, Supermicro, and Crusoe, initiated in September 2024.

The AI-enhanced 2170 cylindrical cell combines the widely used 2170 Li-ion cell form factor with improved low-temperature performance, high-rate cycling stability, and reduced thermal risks, thanks to the newly discovered AI-driven electrolyte. Founder and CEO Qichao Hu, highlighted:

“The worldwide market for Li-ion cylindrical cells alone is currently estimated at $10bn in 2023 and expected to grow to $50bn by 2033 according to Allied Market Research. Using this electrolyte in our new cells as well as Li-Metal applications creates additional revenue potential we had not previously anticipated.”

26. Absci Corporation (NASDAQ:ABSI)

Market Capitalization: $320.33 Million

Number of Hedge Fund Holders: 20

Absci Corporation (NASDAQ:ABSI) is a generative AI drug creation company that integrates AI with scalable wet lab technologies to develop biologics more efficiently. Its Integrated Drug Creation platform accelerates drug development by optimizing multiple characteristics critical for both development and therapeutic success. The company can screen billions of cells weekly, enabling it to go from AI-designed antibodies to wet lab-validated candidates in just six weeks.

Absci  (NASDAQ:ABSI) recently achieved a few milestones in healthcare AI as it received a $20 million investment from AMD to support Absci’s AI-driven drug discovery initiatives. In addition, the company also partnered with Owkin to combine their AI-driven platforms to accelerate the discovery and design of novel therapeutics. Absci’s generative AI Drug Creation platform and Owkin’s predictive AI target discovery technology will work together to address new targets in immuno-oncology and other areas like immunology and inflammation.

Analyst Swayampakula Ramakanth from H.C. Wainwright maintained a Buy rating on Absci  (NASDAQ:ABSI) with a $7.00 price target. The rating reflects the strategic partnership with AMD for better AI-driven antibody development and the promising progress of AbSci’s internal pipeline, with key upcoming data points. The target is based on projected revenues and a conservative growth outlook.

25. POET Technologies Inc. (NASDAQ:POET)

Market Capitalization: $381.4 Million

Number of Hedge Fund Holders: 5

POET Technologies Inc. (NASDAQ:POET) focuses on advanced chip-scale photonic solutions, particularly for AI networks and hyperscale data centers. Its key innovation is the POET Optical Interposer, a platform that integrates electronic and photonic devices at the wafer level, offering advantages such as lower costs, energy efficiency, and miniaturization. The technology is pivotal for optical engines used in AI clusters, enabling scalable, high-performance data communication. POET is developing optical engines that can scale from 400G to 3.2T, positioning itself as a leader in the future of AI and data center communications, with strong industry partnerships validating its approach.

In October 2024, POET Technologies (NASDAQ:POET) was awarded the “Best in Artificial Intelligence” title at the 2024 Global Tech Awards, held on October 14. This recognition was the third major accolade the company has received in 2024, following the AI Breakthrough Award for “Best Optical AI Solution” and the Gold Prize for “AI Innovator of the Year.” POET was chosen for its innovative approach to advancing AI networks and hyperscale data centers.

In December 2024, POET completed the acquisition of 100% control of Super Photonics Integrated Circuit Xiamen Co., Ltd. (SPX) by acquiring the remaining minority equity interests from Quanzhou San’an Optical Communication Technology Co., Ltd. The acquisition adds to POET’s production capacity for optical engines, which are vital for AI clusters, through agreements with Globetronics Manufacturing in Malaysia. The acquisition includes a $6.5 million purchase of Sanan’s equity, with payments over five years, and the acquisition of $3.8 million in production equipment. POET also plans to rename SPX to reflect its status as a subsidiary.

24. HIVE Digital Technologies Ltd. (NASDAQ:HIVE)

Market Capitalization: $400 Million

Number of Hedge Fund Holders: 7

HIVE Digital Technologies Ltd. (NASDAQ:HIVE) is a leading technology company focused on sustainable blockchain and AI infrastructure, powered by green energy.

On December 23, HIVE Digital (NASDAQ:HIVE) announced the acquisition and deployment of a new cluster of advanced NVIDIA H100 GPUs, along with the latest NVIDIA H200 GPUs, in Quebec, Canada. The $30 million investment strengthens the company’s position as a leader in the global gig economy and supports its dedication to advancing AI and high-performance computing (HPC).

The new supercomputing clusters are expected to open up new revenue streams while aligning with HIVE Digital’s (NASDAQ:HIVE) sustainability goals by using 100% renewable energy. The company projects that, once deployed with customers, the HPC services’ annual revenue run rate will exceed $20 million by Q2 2025, focusing on high-margin cloud computing and AI model training.

23. Perion Network Ltd. (NASDAQ:PERI)

Market Capitalization: $423.8 Million

Number of Hedge Fund Holders: 21

Perion Network Ltd. (NASDAQ:PERI) is an Israel-based company that offers digital advertising solutions for brands, agencies, and publishers globally. Its offerings include Wildfire for content monetization, search monetization tools, and a cross-channel advertising SaaS platform. The company provides supply and demand management platforms, analytics, creative media, and AI-powered campaign intelligence. Perion also offers a publisher management system, search-demand tools, and Intelligent HUB (iHUB) to connect supply and demand. Its SORT technology eliminates the need for cookies.

Perion (NASDAQ:PERI) recently announced the integration of Experian’s identity graph into its digital advertising solutions, boosting its cross-device targeting and attribution capabilities. This collaboration strengthens Perion’s tools, including its AI-powered SORT platform, which uses privacy-safe data to optimize campaigns across Connected TV and the web while providing a detailed view of customer journeys. CEO Tal Jacobson emphasized that the integration empowers advertisers with personalized marketing strategies to boost engagement and conversions.

22. Mitek Systems, Inc. (NASDAQ:MITK)

Market Capitalization: $454.56 Million

Number of Hedge Fund Holders: 19

Mitek Systems, Inc. (NASDAQ:MITK) provides mobile image capture and identity verification solutions worldwide. Its main products include Mobile Deposit for remote check deposits, Mobile Verify for identity checks, and Mobile Fill for simplified form completion. It also offers MiSnap for image capture, tools like CheckReader and Check Fraud Defender for check processing and fraud prevention, and solutions like MiVIP and MiPass for KYC processes and identity theft protection.

Additional offerings include ID_CLOUD, IDLive Face, IDLive Doc, and IDVoice to combat fraud and better security. The company aims to strengthen its AI-powered solutions and upgrade fraud and identity detection to tackle rising digital fraud. The company not only has AI-driven solutions but is also focused on combating rising AI-driven threats and deepfakes. At its latest earnings call, the company CEO Ed West said:

“Mitek is a trusted leader in computer vision and identity-related application of AI and fraud prevention. We revolutionized check processing with our mobile check deposit solution and we continue to push boundaries with innovations in identity verification, authentication and fraud management”

He also added:

“Customers are increasingly seeking integrated platforms, not just point solutions, to combat rising AI-driven threats and deepfakes. Our fraud platform stands out with proprietary capabilities with an established track record of leading in trusted third-party and U.S. government-led benchmarks.

This independently verified technological leadership, combined with our exceptional talent and domain expertise, positions Mitek to lead in this evolving market. The rapid proliferation of AI leads to new growing period of GenAI-driven fraud. We are uniquely positioned to address this growing problem as a result of our proprietary technologies and proven track record in high assurance market segments.”

In December, Allen Klee of Maxim Group maintained a Buy rating on Mitek Systems with a $13 price target, emphasizing its strong financial performance and strategic focus. The company outperformed expectations in F4Q24, achieving significant revenue, adjusted EBITDA, and EPS growth, driven by strong results in its Identity and Deposits segments.

21. Evolv Technologies Holdings, Inc. (NASDAQ:EVLV)

Market Capitalization: $492 Million

Number of Hedge Fund Holders: 18

Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) is a company specializing in AI-driven weapons detection systems for security screening. Unlike traditional metal detectors, Evolv’s touchless solutions leverage AI, cloud-based SaaS, and advanced sensors to detect potential threats without unnecessary alarms caused by harmless items. Visitors can move through the system without stopping, forming lines, or emptying pockets, significantly improving efficiency and reducing false alarms.

Evolv’s technology enables faster screening processes as it offers up to ten times the speed of older methods and cutting costs by up to 70%. The touchless approach aligns with modern demands for reduced physical contact and provides valuable analytics on visitor flow and security performance. The company primarily offers its services through multi-year subscription models, ensuring consistent revenue while delivering value to its clients. Evolv’s market includes unregulated facilities across sectors like education, healthcare, entertainment, government, and industry, representing over $20 billion in potential annual sales, according to the company’s last 10-K filings

In the third quarter of 2024, Evolv Technologies reached significant milestones. It surpassed 2 billion screenings, added 465 new subscriptions, and expanded to over 1,100 school and 400 hospital buildings. The company gained three new professional sports stadium clients and three additional Fortune 500 customers. Evolv Express screened 3 million visitors daily and detected over 500 firearms per day.

20. Mercurity Fintech Holding Inc. (NASDAQ:MFH)

Market Capitalization: $509 Million

Number of Hedge Fund Holders: N/A

Mercurity Fintech Holding Inc. (NASDAQ:MFH) is a digital fintech company operating in North America and the Asia-Pacific region, focusing on distributed computing and digital consulting. The company provides secure financial solutions to individuals and businesses, aiming to advance digital finance. Its offerings include innovative services powered by artificial intelligence.

On January 15, Mercurity Fintech (NASDAQ:MFH) announced the completion of a private investment in public equity (PIPE) financing on January 9, 2025. The company entered into a securities purchase agreement, selling 1,370,000 ordinary shares to an institutional investor at US$5.87 per share, generating approximately US$8,041,900 in gross proceeds. The company plans to use the funding to advance its AI hardware manufacturing and develop innovative liquid cooling solutions.

19. Bit Digital, Inc. (NASDAQ:BTBT)

Market Capitalization: $551.1 Million

Number of Hedge Fund Holders: 6

Bit Digital, Inc. (NASDAQ:BTBT) is a company focused on bitcoin mining, digital asset staking, and Ethereum staking activities. It also engages in treasury management and provides specialized cloud infrastructure services for AI applications. Bit Digital AI is a division of the company that focuses on offering tailored infrastructure to support the operations and processes involved in generative AI. The infrastructure is designed to meet the specific needs of AI workstreams.

Toward the end of December 2024, Bit Digital (NASDAQ:BTBT) announced the acquisition of real estate and a building in Montreal, Canada, for the development of a 5MW Tier-3 data center expansion. This move is part of the company’s broader strategy to grow its HPC data center capacity to 32MW in 2025. The site is also included in Bit Digital’s previously announced 288MW proprietary pipeline. The property was acquired for C$33.5 million.

18. Rezolve AI Limited (NASDAQ:RZLV)

Market Capitalization: $570.52 Million

Number of Hedge Fund Holders: 3

Rezolve AI Limited (NASDAQ:RZLV) specializes in AI-driven solutions for commerce and retail, aiming to enhance customer engagement and drive revenue growth. Its BRAiN Suite, which includes BRAiN Commerce, BRAiN Checkout, and BRAiN Assistant, uses AI to deliver personalized, seamless shopping experiences. The company collaborates with major partners such as Microsoft and Google to innovate the future of commerce.

On January 10, it was announced that Rezolve AI (NASDAQ:RZLV) and Royal Caviar Club (RCC) are forming a strategic partnership to elevate luxury eCommerce. The collaboration makes use of Rezolve Ai’s advanced BRAiN Commerce suite to provide a digital experience that reflects the elegance of RCC’s physical stores. RCC will integrate Rezolve Ai’s conversational commerce tools as it aims to transform the luxury shopping journey, offering personalized customer interactions, simplified checkout processes, and AI-powered product recommendations.

Arthur Yao, Deputy CEO, Rezolve Ai, said:

“The partnership between RCC and Rezolve Ai represents the pinnacle of luxury and innovation. Caviar is an icon of refinement, and RCC’s adoption of Rezolve’s Brain Commerce Suite demonstrates how our AI solutions can redefine customer engagement in high-end markets.”

17. Nano-X Imaging Ltd. (NASDAQ:NNOX)

Market Capitalization: $583 Million

Number of Hedge Fund Holders: 5

Nano-X Imaging Ltd. (NASDAQ:NNOX) develops advanced medical imaging technology, including a digital X-ray source for tomographic imaging. The company provides teleradiology services and AI-based software solutions to improve medical diagnoses. Its offerings include a medical imaging system, cloud platform for image management and AI integration, and a marketplace connecting radiologists and imaging facilities.

Nano-X (NASDAQ:NNOX) is one of the under the radar AI stocks, and develops advanced, cost-effective tomographic imaging devices with digital X-ray technology. The company expects significant growth in device sales and has incorporated FDA-approved AI through its NanoxAI system. NanoxAI advances diagnostic processes by interpreting scans, detecting chronic conditions early, and speeding up clinical care, while using a large database of patient records and images.

16. Cerence Inc. (NASDAQ:CRNC)

Market Capitalization: $602.27 Million

Number of Hedge Fund Holders: 10

Cerence Inc. (NASDAQ:CRNC) specializes in AI-powered virtual assistants for the mobility and transportation sectors globally. The company offers edge software, cloud-connected components, and professional services. Its conversational AI solutions include speech recognition, natural language understanding, text-to-speech, and acoustic modeling.

On January 3, Cerence (NASDAQ:CRNC) announced an expanded partnership with NVIDIA to improve its CaLLM language models, including the cloud-based Cerence Automotive Large Language Model (CaLLM) and the embedded CaLLM Edge. By integrating NVIDIA AI Enterprise and using tools like NVIDIA TensorRT-LLM and NVIDIA NeMo, Cerence AI accelerated the development of its models for the automotive industry.

The collaboration improves in-vehicle assistant performance, optimizes in-car interactions with an automotive version of NVIDIA NeMo Guardrails, and advances user experiences with an agentic architecture powered by NVIDIA DRIVE AGX Orin.

15. 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.

14. Riskified Ltd. (NYSE:RSKD)

Market Capitalization: $831.76 Million

Number of Hedge Fund Holders: 18

Riskified Ltd. (NYSE:RSKD) helps businesses drive e-commerce growth by combating fraud and minimizing risks. Trusted by major global brands, Riskified offers chargeback protection, fraud prevention, and policy abuse management at scale. Its AI-driven platform, supported by a team of experts, analyzes user interactions to provide real-time decisions and detailed identity insights, ensuring better customer retention and security.

Riskified (NYSE:RSKD) has also partnered with IXOPAY to improve payment security, reduce fraud, and improve operational efficiency. Combining IXOPAY’s payment orchestration and tokenization with Riskified’s AI-driven fraud detection, this collaboration aims to increase sales conversion, minimize chargebacks, and create smoother payment experiences. The solution enhances fraud prevention, reduces manual reviews, and boosts customer satisfaction by minimizing false declines. It also helps businesses comply with regulations, provide real-time threat responses, and optimize payment flows, ultimately improving e-commerce performance.

13. Blaize Holdings, Inc. (NASDAQ:BZAI)

Market Capitalization: $863.162 Million

Number of Hedge Fund Holders: N/A

Blaize Holdings, Inc. (NASDAQ:BZAI) offers a suite of programmable processor architectures and a low-code/no-code software platform designed for AI processing in high-performance computing environments. Its solutions enable real-time insights and decision-making with low power consumption, high efficiency, and compact size.

On January 14, Blaize went public on NASDAQ through BurTech Acquisition Corporation, a SPAC owned by Burkhan World Investments, with a $1.2 billion valuation. The IPO raised $116 million in convertible notes and funding, leveraging the SPAC 3.0 model for pre-IPO support and strategic partnerships. Blaize’s edge AI solutions, which are focused on real-time data processing for applications like security and surveillance, received backing from the UAE’s Private Office of Sheikh Ahmed Dalmook Al Maktoum.

12. Serve Robotics Inc. (NASDAQ:SERV)

Market Capitalization: $920.17 Million

Number of Hedge Fund Holders: 5

Serve Robotics Inc. (NASDAQ:SERV) provides an AI-powered robotics platform, with last-mile delivery as its primary application. The company’s first product, a low-emissions robot for food delivery, was launched in 2020 during the pandemic, completing over 10,000 deliveries for Postmates. In 2022, Serve partnered with Uber to deploy up to 2,000 robots, with plans to expand based on funding availability.

Serve’s delivery robots are designed to reduce costs, improve reliability, and lower emissions. Despite operating constraints like cargo weight and speed, they are well-suited for deliveries under 2.5 miles, which make up a significant portion of U.S. restaurant orders. The robots are equipped with autonomous navigation, remote operator support, and secure features to protect cargo and data.

According to ARK Invest Big Ideas 2024, food and parcel delivery using robots and drones could generate $450 billion in fees, driven by cost-effective technology reshaping consumer behavior by 2030. This could provide a huge boost to Serve’s (NASDAQ:SERV) revenue in the long term.

11. BigBear.ai Holdings, Inc. (NYSE:BBAI)

Market Capitalization: $952.23 Million

Number of Hedge Fund Holders: 7

BigBear.ai Holdings, Inc. (NYSE:BBAI) provides AI-driven decision intelligence solutions for national security, supply chain management, and digital identity. Its offerings include software and services that improve decision-making in complex, mission-critical environments. The company acquired Pangiam in 2024, expanding its vision AI capabilities in biometrics and anomaly detection.

BigBear.ai’s (NYSE:BBAI) solutions address national security, supply chain management, and digital identity markets, incorporating tools like predictive analytics, digital twins, and facial recognition technology. The company supports public and private sector clients, including defense and intelligence agencies, focusing on operational readiness, data integration, and digital security. According to the company’s last 10-K filings posted in March 2024, the total addressable market for the company’s products/offerings is projected to grow from $80 billion in 2024 to $272 billion by 2028.

As reported by TipRanks on December 30, 2024, Scott Buck from H.C. Wainwright maintained a Buy rating on BigBear.ai (NYSE:BBAI) with a $7.00 price target, attributing the company’s strong growth prospects and financial stability to several factors. BigBear.ai’s market outperformance, driven by rising demand for its AI services and involvement in key contracts like OASIS+, contributed to Buck’s positive outlook. The company’s successful extension of convertible notes has alleviated near-term concerns, positioning it well in a favorable environment for small-cap growth companies. Despite a revenue miss in Q3 2024, BigBear.ai has upheld its revenue guidance, prompting Buck to boost the price target, reflecting confidence in its growth trajectory.

10. PROS Holdings, Inc. (NYSE:PRO)

Market Capitalization: $1.04 Billion

Number of Hedge Fund Holders: 25

PROS Holdings, Inc. (NYSE:PRO) offers software solutions designed to optimize sales and pricing processes globally. The company uses AI technologies to boost sales productivity, pricing strategies, and revenue management, enabling businesses to personalize pricing and forecast more accurately. Its AI-driven solutions support industries like travel, manufacturing, healthcare, and logistics, helping organizations improve efficiency and maximize business outcomes.

On January 16, Oppenheimer analyst Brian Schwartz downgraded PROS (NYSE:PRO) stock from Outperform to Perform and removed the $27 price target. While recognizing Pros as a strong company with deep integration in its customers’ dynamic pricing IT systems, the firm highlighted the company’s broad range of sales optimization products and advanced AI capabilities. However, Oppenheimer cited a tough new software spending environment in the airline industry, an upcoming CEO transition, and a slowdown in subscription revenue growth in 2025 as factors that will continue to impact the company’s fundamentals and market sentiment.

9. Penguin Solutions, Inc. (NASDAQ:PENG)

Market Capitalization: $1.07 Billion

Number of Hedge Fund Holders: N/A

Penguin Solutions, Inc. (NASDAQ:PENG) designs enterprise solutions globally with a focus on advanced computing, integrated memory, and optimized LED. It offers memory modules, storage solutions, and supply chain services for sectors like telecom, AI, and data analytics. The company also provides high-performance computing and AI solutions through Penguin Computing, and edge computing solutions through Penguin Edge.

Additionally, it offers fault-tolerant computing through Stratus and LED chips under the Cree LED brand. Penguin Solutions sells its products through direct sales, e-commerce, and several partners. Penguin Solutions brings over 25 years of AI infrastructure expertise to the partnership and supports AI deployments for major tech firms, enterprises, and academic institutions.

Penguin Solutions. (NASDAQ:PENG) recently announced a significant milestone as it reached a strategic partnership with SK Telecom and SK hynix to develop AI data center solutions. The collaboration, announced at CES 2025, follows SKT’s $200 million investment in Penguin Solutions. The partnership will add to the companies’ ability to deliver advanced AI infrastructure services across various markets. Combining Penguin Solutions’ Scyld ClusterWare software with SKT’s AI infrastructure management tools, the collaboration aims to improve AI cluster efficiency, memory solutions, and performance in high-performance computing environments.

8. Innodata Inc. (NASDAQ:INOD)

Market Capitalization: $1.08 Billion

Number of Hedge Fund Holders: 10

Innodata Inc. (NASDAQ:INOD) is an American data-engineering company that operates in the U.S., U.K., Netherlands, Canada, and several other regions. The company provides AI data preparation, training data creation, annotation, and AI model deployment services. It also offers data transformation, curation, hygiene, consolidation, extraction, compliance, and master data management solutions.

Furthermore, Innodata (NASDAQ:INOD) converts medical records into digital formats and supports marketing and public relations professionals in content distribution and media analysis. Innodata serves industries such as banking, insurance, technology, retail, and media.

Wedbush initiated coverage of Innodata with an Outperform rating and a $48 price target in December 2024, highlighting the company’s leadership in data quality, scale, and agility. The analyst noted that Innodata currently partners with five of the “Magnificent 7” tech companies, with two more deals expected. The firm believes Innodata’s extensive experience in data annotation and AI will position it as a leader in the growing field.

7. Cohu, Inc. (NASDAQ:COHU)

Market Capitalization: $1.17 Billion

Number of Hedge Fund Holders: 10

Cohu, Inc. (NASDAQ:COHU) supplies semiconductor test equipment and services globally, including in China, the U.S., Taiwan, Malaysia, and the Philippines. Its offerings include test handlers, MEMS test modules, thermal subsystems, and automated test equipment for wafer-level and package testing. The company also provides DI-Core, a data analytics software suite for real-time performance monitoring and process control.

In December 2024, Cohu (NASDAQ:COHU) announced an agreement to acquire Tignis, Inc., a company specializing in AI-driven process control and analytics software. The acquisition allows Cohu to strengthen its analytics capabilities and tap into the $2.6 billion semiconductor process control market, targeted by Tignis’ PAICe Monitor and PAICe Maker solutions. These innovative tools use AI, machine learning, and data science to offer predictive and prescriptive automation for semiconductor manufacturing.

Tignis will also help strengthen the company’s expertise in data science and improve its DI-Core software. PAICe Monitor uses AI for anomaly detection and predictive maintenance, while PAICe Maker automatically adjusts manufacturing processes to reduce variability and maintenance costs. The acquisition, funded with cash on hand, is set to close in January 2025.

6. Docebo Inc. (NASDAQ:DCBO)

Market Capitalization: $1.3 Billion

Number of Hedge Fund Holders: 15

Docebo Inc. (NASDAQ:DCBO) is a provider of AI-powered learning management software and offers a comprehensive cloud-based platform to facilitate workforce training. Its solutions include Docebo Learn LMS for personalized learning, Docebo Shape for AI-driven content creation, Docebo Learning Impact for measuring learning effectiveness, and Docebo Flow for integrating learning into daily work. Additionally, it provides tools for mobile learning, Salesforce and Microsoft Teams integrations, and extended enterprise education.

It was reported that Docebo (NASDAQ:DCBO) entered into a strategic partnership with Class Technologies Inc. in December 2024. Through this collaboration, the company’s clients will be able to easily integrate their existing training content into Class, improving the delivery of synchronous learning. Additionally, Class will offer Docebo users advanced AI tools and analytics, enabling real-time measurement of learner engagement and supporting L&D leaders in driving success.

Travis Burke, Executive Vice President of Corporate Development & Partnerships at Docebo, said:

“We are proud to partner with Class and bring our AI-powered learning platform’s efficiency and automation directly to virtual classrooms. Together, we share a vision for a more learner-centric future of learning that is focused on true engagement and more impactful outcomes for our global users.”

5. Fastly, Inc. (NYSE:FSLY)

Market Capitalization: $1.334 Billion

Number of Hedge Fund Holders: 14

Fastly, Inc. (NYSE:FSLY) provides an edge cloud platform that processes, delivers, and secures applications globally, including in the U.S., Asia Pacific, and Europe. The platform supports developers in building and delivering digital experiences at the edge of the internet. Fastly offers services like network optimization, geolocation, content delivery, live streaming, and video on demand. Its security solutions include DDoS protection, bot management, API security, and advanced TLS options.

In December 2024, Fastly (NYSE:FSLY) launched the Fastly AI Accelerator, a semantic caching solution designed to improve the performance and reduce costs of Large Language Model (LLM) generative AI applications. The solution, now generally available, delivers up to 9x faster response times and supports platforms like OpenAI ChatGPT and Microsoft Azure AI Foundry. Developers can integrate it by updating a single API endpoint, enabling cached responses for repeated queries instead of returning to the AI provider for each call.

At the beginning of the year, RBC Capital increased Fastly’s price target from $7 to $10 while maintaining a Sector Perform rating in its 2025 software sector outlook. The firm expects another strong year for software due to stabilized spending trends, potential innovations from generative AI, and favorable comparisons in early 2025 as companies focus on growth.

4. Verint Systems Inc. (NASDAQ:VRNT)

Market Capitalization: $1.55 Billion

Number of Hedge Fund Holders: 19

Verint Systems Inc. (NASDAQ:VRNT) is a customer experience automation company that uses its Verint Open Platform and AI-driven bots to achieve measurable business results through artificial intelligence. The company’s offerings include tools for forecasting, scheduling, routing, knowledge management, fraud prevention, compliance, analytics, real-time assistance, self-service, financial compliance, and customer feedback analysis. The Verint Open platform enables brands to improve customer experience automation across contact centers, back offices, branches, websites, and mobile apps.

On January 10, Needham reaffirmed a Buy rating on Verint (NASDAQ:VRNT) stock with a $40 price target, as per The Fly. The firm named Verint its top pick and added it to the “Needham Conviction” list. The firm highlights positive factors for the stock, including a recovery in contact center spending after two challenging years post-COVID, and Verint’s strong presence in the Hybrid Cloud contact center market. Needham expects Verint to balance declines in seat-based WFO revenue with growth in AI Bot applications and believes concerns about near-term declines in contact center seats are overly pessimistic.

3. Xometry, Inc. (NASDAQ:XMTR)

Market Capitalization: $1.724 Billion

Number of Hedge Fund Holders: 7

Xometry, Inc. (NASDAQ:XMTR) is an innovative company that leverages artificial intelligence to revolutionize the manufacturing industry. It operates a digital marketplace and offers cloud-based services to assist manufacturers in growing their businesses and to help buyers build efficient, resilient supply chains. One of its key features, the Xometry Instant Quoting Engine, uses vast amounts of data to instantly analyze complex parts, match buyers with appropriate suppliers around the world, and offer accurate pricing and delivery estimates. Additionally, Xometry owns the Thomasnet industrial sourcing platform, further supporting businesses in finding suppliers and managing procurement processes.

Xometry (NASDAQ:XMTR) reported that its AI-driven global custom-manufacturing marketplace now includes over 4,200 active suppliers, a 34% increase, or 780 more suppliers, in the first three quarters of 2024, nearly triple the number since 2021.

The AI-powered marketplace is central to the rapid digital transformation of the manufacturing industry, using proprietary technology to reduce development cycles, improve efficiencies, and build more resilient supply chains. Xometry’s (NASDAQ:XMTR) supplier network spans across all 50 U.S. states and three continents, offering a wide range of manufacturing processes, materials, and finishes.

2. Stagwell Inc. (NASDAQ:STGW)

Market Capitalization: $1.73 Billion

Number of Hedge Fund Holders: 15

Stagwell Inc. (NASDAQ:STGW) is a digital transformation company that offers a wide range of services including digital platform design, content delivery, e-commerce support, and technology solutions. It operates across three main segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. The company provides AI-powered tools for communications, media, and research, alongside cookie-less data platforms for advanced targeting. Other AI-related offerings include e-commerce solutions, augmented reality media, and consumer engagement through text messaging apps.

On January 16, Stagwell (NASDAQ:STGW) announced its intention to acquire ADK GLOBAL, a network of subsidiaries managed by ADK Holdings Inc. Based in Japan with offices in 10 global markets, ADK GLOBAL offers integrated marketing solutions. The acquisition supports Stagwell’s strategy to expand its global presence and advance its investment in AI-driven solutions for digital marketing. The combined AI-powered offerings from both companies aim to help clients, including major global and Asian brands like LG, Shanghai Disney Resort, Google, Dexcom, and Adidas, achieve impactful results.

1. Applied Digital Corporation (NASDAQ:APLD)

Market Capitalization: $1.904 Billion

Number of Hedge Fund Holders: 26

Applied Digital Corporation (NASDAQ:APLD) specializes in developing and operating next-generation data centers and cloud infrastructure. Its custom-designed facilities are built to optimize accelerated computing and provide secure, scalable digital hosting services, including CSaaS and GPU-as-a-Service. With extensive hyperscale experience and a strong power supply pipeline, Applied Digital focuses on supporting demanding AI/ML, blockchain, and high-performance computing (HPC) workloads, including AI factories.

In December 2024, Applied Digital reached an important milestone in its Ellendale, N.D., data center project by successfully energizing its main substation transformer. This step moves the facility closer to supporting advanced AI and high-performance computing. The milestone was celebrated with partners, including Montana-Dakota Utilities and the local community. Applied Digital also requested annexation to Ellendale to increase local revenue and services.

Analyst Darren Aftahi of Roth MKM keeps a positive outlook on Applied Digital (NASDAQ:APLD), which is based on the company’s financial restructuring, including revised depreciation schedules that are expected to improve AI Cloud segment profitability and refinancing of debt, positioning the company for growth. Aftahi also sees potential revenue growth from the expanding AI Cloud business and steady Bitcoin hosting revenues, with the broader industry, especially Microsoft’s investments in AI data centers, expected to drive increased demand. Aftahi maintains a Buy rating on the company stock with a $13 price target.

While we acknowledge the potential of Applied Digital Corporation (NASDAQ:APLD) 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 timeframe. If you are looking for an AI stock that is more promising than APLD 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 was originally published at Insider Monkey.