In the burgeoning field of artificial intelligence, small-cap stocks offer unique opportunities for growth, albeit with higher risks due to their market size and developmental stage. Here’s a report on five noteworthy AI-tech small-cap stocks for 2024, which showcases a blend of innovative application in AI across various sectors, including finance, identity verification, digital learning, conversational AI, and engineering solutions.
1. Lemonade (NYSE: LMND)
Lemonade stands out for its use of AI in the insurance sector, making the process of getting insurance faster and more user-friendly with its AI-powered chatbot, Maya. This technology not only streamlines the insurance acquisition process but also helps in customizing user experiences and offerings.
2. Mitek Systems (NASDAQ: MITK)
Mitek Systems is pioneering digital identity verification with AI and machine learning, catering to a growing need for secure online transactions and services. The company’s technology is essential in combating fraud and enhancing digital security, a critical area as more financial interactions shift online.
3. Domo (NASDAQ: DOMO)
Domo offers cloud software aimed at business intelligence tools and data visualization. It empowers businesses with AI tools for better data management and decision-making processes, emphasizing generative AI and natural language processing to make data analytics more accessible and actionable.
4. BigBear.ai (NYSE: BBAI)
BigBear.ai delivers AI-powered analytics and cyber engineering solutions, crucial for decision-making in complex environments. The company has a significant impact on its clients, which include notable names in defense and logistics. Its growth is attributed to its innovative solutions in analytics and the securing of key contracts, like the U.S. Army Global Force Information Management contract.
5. SoundHound AI (NASDAQ: SOUN)
SoundHound AI is making strides in conversational AI, enabling more natural interactions between humans and technology. The company is poised to revolutionize voice-assisted technologies in various industries, including automotive, where it sees significant growth potential. SoundHound AI boasts a robust customer base across different sectors, highlighting its versatile application of AI.
When considering investment in small-cap AI stocks, it’s crucial to evaluate the company’s financial health, the demand for its AI solutions, the competitive landscape, and the potential for scalability and growth. Despite the higher risk associated with small-cap stocks, these companies present compelling cases for their role in pushing AI technology forward in their respective fields.
It’s essential to approach such investments with due diligence, considering the volatility and growth potential inherent in small-cap stocks, especially in the rapidly evolving AI sector.
by Steve Macalbry
Senior Editor,
BestGrowthStocks.Com
Disclaimer: This article is intended for informational purposes only. It should not be considered financial or investment advice. We do not hold any form of equity in the securities mentioned in this article. Always consult with a certified financial professional before making any financial decisions. Growth stocks carry a high degree of risk, and you could lose your entire investment.
