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 Gaxos.ai Inc. (NASDAQ:GXAI) 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).
Hand touching brain of AI, Symbolic, Machine learning, artificial intelligence of futuristic technology. AI network of brain on business analysis, innovative and business growth development.
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.
Overall, GXAI ranks 55th on our list of AI companies under $2 billion market cap. While we acknowledge the potential of GXAI 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 GXAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.
