Best 20 AI Small Cap Stocks to Buy
If the best AI stocks and best technology stocks listed on the NASDAQ, S&P, or Russell 2000 don’t have enough upside for you, then you could take bigger chance on some AI small caps. With a buy-and-hold strategy, you might just wait for them to catch fire and enjoy your big payday.
Right now, with President Trump in power and citing the importance of AI and US leadership in artificial intelligence, along with the priority of technology applications in military, cryptocurrency, cloud, and more, the sector has strong support. And investors believe in it and are hungry for new promising AI companies. They want to hop on like you do and take the long ride upward. The next Palantir is out there. Can you find it?
🚀 Why Would an AI Small-Cap Company Suddenly Rocket?
The answer might be that AI technology will proliferate increasingly throughout the US and the rest of the world. This creates more demand and opportunity for new AI startups. And too, the fear of missing out phenomena will ensure more investors will be all in on AI technology companies. After 2030, the biggest gains won’t be in hardware companies, but rather companies that apply AI. Some small AI companies such as Rezolve AI PLC (NASDAQ: RZLV) operate on the Microsoft and Google platforms which means they appear in their respect ecospheres.
Some of these companies will no doubt see big revenue gains and find users and new business partners. They will become top takeover targets by firms wanting to grow their revenues and expand their services. Again, it’s all speculation, but as you’re investing in many stocks that likely will fall by the wayside, drop in price, and become unprofitable, the risk in buying small AI stocks is mitigated somewhat.
The risks of these small-cap AI stocks include:
- AI regulations by governments
- a collapsing AI bubble
- the company’s product or business model fails
- poor stock analyst coverage thus no major investor demand for the stock
- unclear financials so difficult to determine how viable they are
- valuations are often too rich
- institutional dependence risk meaning they need validation from larger companies
- they may have single-sector risk
- high-volatility, but buying at a dip makes it even sweeter
- SoundHound AI, Inc. (NASDAQ: SOUN): Specializes in voice AI and conversational intelligence. Has gained attention due to partnerships and NVIDIA’s investment. Note: Its price has fluctuated significantly, at times going well above $5, but it has also traded below.
- Satellogic Inc. (NASDAQ: SATL): An Earth observation satellite company that uses AI for data analytics. Recently added to the Russell 3000. As of July 8, 2025, mentioned at $3.35.
- Rezolve AI PLC (NASDAQ: RZLV): Focuses on AI-powered conversational commerce solutions. Mentioned at $2.85 recently.
- FiscalNote Holdings, Inc. (NASDAQ: NOTE): Provides AI-powered global policy and market intelligence. Mentioned as trading under $5.00.
- iCAD, Inc. (NASDAQ: ICAD): Specializes in medical devices, integrating AI into solutions for early cancer detection. Mentioned as trading under $5.00.
- POET Technologies Inc. (TSX: PTK, OTCQX: POETF): A semiconductor company designing optoelectronic solutions for data centers and AI markets. Mentioned as trading under $5.00 (in USD terms for OTCQX). Check specific exchange for TSX price.
- Remark Holdings (NASDAQ: MARK): Develops and deploys AI-based solutions for business. Mentioned as a riskier stock often under $5.
- VERSES AI Inc. (NEO: VERS, OTCQX: VRSSF): Focuses on AI-driven knowledge modeling. Mentioned at $0.2933 for VRSSF recently.
- BigBear.ai Holdings Inc. (NYSE: BBAI): Provides AI-powered intelligence solutions to military and commercial customers. Its price has been volatile and has traded both above and below $5.
- Ideanomics Inc. (NASDAQ: IDEX): A global business group that helps commercial organizations transition to electric vehicles, with some AI integration in their platforms. Has traded under $5.
- Nerdy, Inc. (NYSE: NRDY): An online learning platform using AI to personalize tutoring. Its price has been volatile and has traded both above and below $5.
- Canaan Inc. (NASDAQ: CAN): A Chinese hardware company that integrates AI into blockchain and crypto mining servers. Has traded under $5.
- Rekor Systems Inc. (NASDAQ: REKR): Offers AI solutions for transportation management, public safety, and urban mobility. Has traded under $5.
- Beyond Air (NASDAQ: XAIR): While primarily a medical device company, it might be leveraging AI in its research or operations, or be discussed in broader “tech” lists. Has traded under $5.
- Solid Biosciences, Inc. (NASDAQ: SLDB): Focuses on gene therapy, potentially using AI in drug discovery or development. Mentioned at $4.74 recently.
- Candel Therapeutics Inc (NASDAQ: CADL): Biopharmaceutical company, AI could be used in drug discovery/development, but primary focus is not AI. Recently included in Russell indices. Check current price.
- AbCellera Biologics (NASDAQ: ABCL): Uses AI in drug discovery. Mentioned at $3.80 recently.
- Amprius Technologies, Inc. (NYSE: AMPX): Battery technology, AI might be used in manufacturing or research. Mentioned at $3.78 recently.
- ModivCare Inc. (NASDAQ: MODV): Healthcare services company, could have AI in its tech-enabled services. Mentioned at $3.44 recently.
- Serve Robotics (SERV):Â pioneering the autonomous last-mile delivery space, a sector poised for significant growth as demand for automated delivery services rises. The company has a partnership with Uber to deploy up to 2,000 robots for Uber Eats.
As you can see, the best AI stocks to buy might be the small caps. They’re hard to find, hard to valuate, and pose much more risk than with PLTR, Nvda, or GOOG. Yet those low, penny stock prices are hard to risk. Before you invest in them, consider the sector they’re operating in, demand profiles, and about their management team.
See more on the stock market update, outlook for next week and a peak at what’s coming in the next 5 years. If the FED drops the interest rates, the US economy, especially small business will rocket forward in the next 5 year period.
Title image photo by Stockcake
