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 SES AI Corporation (NYSE:SES) 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 line of electric vehicles being produced in a Massachusetts-based production facility.
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.”
Overall, SES ranks 27th on our list of the 59 AI companies under $2 billion market cap. While we acknowledge the potential of SES 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 SES 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.
