December 6, 2024

Small-cap publicly traded AI companies often represent higher risk but also the potential for significant growth as they capitalize on emerging AI trends. These companies tend to have market capitalizations under $2 billion, and many are focused on niche sectors of AI, such as specialized AI software, hardware, automation, or data analytics. Below are some notable small-cap AI companies:

1. Veritone, Inc. (VERI)

• Market Cap: ~ $1.4 billion

• Sector: AI Software, Media & Entertainment, AI-Driven Data Solutions

• Overview: Veritone offers an AI-powered platform that provides cognitive computing services for various industries, including media, law enforcement, and government. Its AI engine, called aiWARE, is used for tasks such as content indexing, transcription, and facial recognition.

• Why It’s Interesting: Veritone is tapping into the rapidly growing AI software space and is particularly focused on providing AI solutions to highly regulated industries, such as legal and government sectors.

2. BigBear.ai (BBAI)

• Market Cap: ~ $800 million

• Sector: AI-Driven Analytics, Defense, Logistics

• Overview: BigBear.ai focuses on delivering AI and machine learning solutions for defense, logistics, and industrial sectors. The company provides advanced data analytics and decision support platforms that help organizations optimize operations and make better strategic decisions.

• Why It’s Interesting: BigBear.ai serves both government and commercial sectors, with a particular focus on military and intelligence, which provides unique growth potential given the rising demand for AI in defense.

3. C3.ai, Inc. (AI)

• Market Cap: ~ $1.8 billion

• Sector: AI Software, Enterprise AI Solutions

• Overview: C3.ai develops AI software that helps enterprises accelerate digital transformation. It offers a suite of AI tools for companies in industries like energy, healthcare, financial services, and manufacturing. Their solutions leverage AI to improve efficiency and decision-making.

• Why It’s Interesting: C3.ai's enterprise-focused AI solutions are gaining traction across various industries, especially as businesses increasingly adopt AI to improve operational efficiencies.

4. Verint Systems Inc. (VRNT)

• Market Cap: ~ $1.5 billion

• Sector: AI in Customer Engagement, Analytics

• Overview: Verint provides AI-powered solutions for customer engagement, workforce optimization, and analytics. Their AI-driven platforms help businesses improve customer service, streamline operations, and enhance productivity.

• Why It’s Interesting: Verint’s focus on AI for customer experience and employee engagement places it in a growing sector, as businesses are increasingly turning to AI to personalize and optimize customer interactions.

5. Appen Limited (APX)

• Market Cap: ~ $1 billion

• Sector: Data for AI, Machine Learning

• Overview: Appen specializes in data collection and labeling for machine learning applications. The company provides training data that powers AI systems, ensuring that algorithms can be accurately trained to handle real-world tasks such as speech recognition, image processing, and natural language understanding.

• Why It’s Interesting: With the growing demand for high-quality labeled data to train AI models, Appen is well-positioned as a key player in the data services market for AI.

6. Lantern Pharma, Inc. (LTRN)

• Market Cap: ~ $250 million

• Sector: AI in Healthcare, Drug Discovery

• Overview: Lantern Pharma applies AI and machine learning to drug discovery, aiming to accelerate the identification of effective treatments for cancer. Their AI platform uses genomics, molecular data, and biological information to develop personalized medicine.

• Why It’s Interesting: The application of AI in drug discovery is a rapidly growing field, and Lantern Pharma’s innovative approach to using AI for precision medicine positions it as a potential disruptor in the pharmaceutical industry.

7. Bionano Genomics (BNGO)

• Market Cap: ~ $700 million

• Sector: AI in Healthcare, Genomics

• Overview: Bionano Genomics utilizes AI and machine learning for genomic analysis, helping researchers and clinicians with insights into genetic disorders. Their platform uses AI to interpret genomic data, making it more accessible for precision medicine applications.

• Why It’s Interesting: As precision medicine and genetic testing grow in popularity, Bionano Genomics' AI-powered genomic tools could play a critical role in advancing personalized healthcare.

8. Lemonade, Inc. (LMND)

• Market Cap: ~ $1.2 billion

• Sector: InsurTech, AI in Insurance

• Overview: Lemonade is a tech-driven insurance company that uses AI to automate policy underwriting, claims processing, and customer support. The company’s AI system, called "AI Jim," helps offer fast, affordable, and transparent insurance solutions.

• Why It’s Interesting: Lemonade is transforming the insurance industry by using AI to simplify and streamline processes, making it an appealing option for those looking to invest in AI's application to traditional industries.

9. Veracyte, Inc. (VCYT)

• Market Cap: ~ $1.1 billion

• Sector: AI in Healthcare, Diagnostics

• Overview: Veracyte is a diagnostics company that leverages AI to interpret medical tests and genomic data. Its focus is on improving the early detection of diseases, such as cancer, by using AI to analyze molecular and genetic data.

• Why It’s Interesting: As healthcare becomes more data-driven, AI's role in diagnostics and personalized treatment continues to grow, and Veracyte’s solutions position it as a key player in the space.

10. Itron, Inc. (ITRI)

• Market Cap: ~ $1.7 billion

• Sector: Smart Grid Technology, AI in Energy

• Overview: Itron provides AI-driven solutions for energy management, focusing on smart meters, grid optimization, and energy efficiency. The company uses machine learning and AI to predict energy consumption patterns and optimize energy distribution.

• Why It’s Interesting: As the global demand for energy-efficient and sustainable solutions grows, Itron’s AI-powered tools help utilities and governments manage energy resources more effectively.

Conclusion

These small-cap AI companies are diverse in terms of industries and applications, yet they share a common thread: they are leveraging cutting-edge AI technologies to drive innovation and create new opportunities. From healthcare and drug discovery to smart grids and customer engagement, these companies represent the potential for significant growth as AI continues to revolutionize industries across the globe. While small-cap stocks come with higher risk, they also offer the possibility for substantial rewards as their AI-driven solutions gain traction.