HEDGE FUNDS - NEWS 5 Small-Cap AI Stocks Published on June 7, 2021 at 10:23 am by TRISH NOVICIO in Hedge Funds, News In this article, we discuss the 5 small-cap AI stocks. If you want to read our detailed analysis of the AI industry, go directly to the 10 Small-Cap AI Stocks.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at the small-cap AI stocks.
Sponsored By: The Motley Fool
7 of 8 People Are Clueless About This Trillion-Dollar Market Cisco and Intel are Budgeting Billions on This Opportunity, and We’re Sounding the Alarm. Learn More About Why We Think This Tech Could Take Off Fast. Read More
5. Qudian Inc. (NYSE: QD)
Number of Hedge Fund Holders: 8
Qudian Inc. (NYSE: QD) is a Chinese online credit platform that was founded in 2014. It is placed fifth on our list of 10 small-cap AI stocks. The fintech company utilizes artificial intelligence and machine learning to provide customers cash credit products. To provide customers with cash credit solutions, the company employs artificial intelligence and machine learning.
The company has a market cap of $542 million. The company’s full-year revenue in 2020 came in at $565.2 million. Qudian Inc.’s net income in 2020 was $146.9 million or $0.55 per diluted ADS. As of December 31, 2020, the company’s total assets were approximately $2.87 million versus its total liabilities of $1 million. The 52-week price range of Qudian Inc. (NYSE: QD) is $1.17 – $3.82. Shares of QD climbed 41% over the past twelve months.
At the end of the first quarter of 2021, 8 hedge funds in the database of Insider Monkey held stakes worth $25.4 million in Qudian Inc. (NYSE: QD), up from 6 the preceding quarter worth $10.2 million.
4. Remark Holdings, Inc. (NASDAQ: MARK)
Number of Hedge Fund Holders: 9
Remark Holdings, Inc. (NASDAQ: MARK) is a Nevada-based artificial intelligence products and solutions provider for businesses. It is placed fourth on our list of 10 small-cap AI stocks. The company was founded in 2006 and has established operations in the US and China. KanKan data intelligence platform, a Remark Holdings, Inc. trademark in China, offers a variety of AI-based products, including retail intelligence and consumer analytics, FinTech risk analysis, and lead acquisition solutions. Among the biggest clients of Remark Holdings, Inc. are China Mobile and Bank of China.
The company has a market cap of $170 million. The company’s revenue in the first quarter of 2021 came in at $4.4 million, up from $0.4 million in the same period in 2020. The 52-week price range of Remark Holdings, Inc. (NASDAQ: MARK) is $0.96 – $4.72. On May 18, Roth Capital maintained its Buy rating on Remark Holdings, Inc. with a price target of $7 per share.
At the end of the first quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $10.7 million in Remark Holdings, Inc. (NASDAQ: MARK), up from 6 the preceding quarter worth $2.1 million.
3. Docebo Inc. (NASDAQ: DCBO)
Number of Hedge Fund Holders: 10
Sponsored By: The Motley Fool
Here's Our “Millionaire-Maker” Stock Pick Triple-Down Buy Alert: The Wealth-Building Stock That’s Right Under Your Nose Read More
Docebo Inc. (NASDAQ: DCBO) is a Toronto-based cloud-based management system provider that was founded in 2005. It is placed third on our list of 10 small-cap AI stocks. The company creates an AI-powered platform that allows clients to consolidate learning materials from colleagues and speed up the learning process across enterprise team members. In March 2021, the Canadian AI firm recently launched its new multi-learning product suite, Docebo Learning Analytics, a business intelligence tool that assists enterprises in data extraction and analysis.
The company has a market cap of $1.7 billion. Shares of DCBO jumped 187% over the past twelve months. The company’s revenue in the first quarter of 2021 came in at $21.7 million, an increase of 60.7% from $12.2 million in the first quarter of 2020. Docebo is presently being used by 2,333 customers, up from 1,831 at the end of March 31, 2020. Docebo Inc. joined Amazon.com, Inc.’s (NASDAQ: AMZN) AWS ISV Partner Path in March 2021, giving the firm access to AWS’s resources and partner network, expanding Docebo’s scope and reach, primarily in rising EMEA regions. The 52-week price range of Docebo Inc. (NASDAQ: DCBO) is $37.21 – $68. On March 15, initiated a Buy rating on Docebo Inc. with a price target of $57 per share. As of June 4, the stock closed at $52.02 a share. Shares of DCBO increased 187% over the past twelve months.
2. Yext, Inc. (NYSE: YEXT)
Number of Hedge Fund Holders: 13
Yext, Inc. (NYSE: YEXT) is a New York-based knowledge engine platform that was founded in 2006. It is placed second on our list of 10 small-cap AI stocks. The cloud-based platform provides AI-powered search engine solutions that help businesses drive customers to their platform and convert leads to sales. The company serves thousands of brands across the sectors of healthcare, retail, food service, financial, consumer packaged goods, and direct-to-consumer. Among the biggest clients of Yext, Inc. are The Coca-Cola Company (NYSE: KO), Verizon Communications Inc. (NYSE: VZ), and Campbell Soup Company (NYSE: CPB).
The company has a market cap of $1.8 billion. The company’s total revenues in the first quarter of the fiscal year 2022 increased 8% to 92 million, up from $85.4 million in the first quarter of 2021. As of April 2021, the company’s cash and cash equivalents were $272 million. The company’s full-year revenues are expected to be in the $381 million to $386 million range. The 52-week price range of Yext, Inc. (NYSE: YEXT) is $12.01 – $20.90. On March 18, Needham maintained its Buy rating on Yext, Inc. and increased its price target to $18 per share. As of June 4, the stock closed at $14.08 a share. Shares of YEXT jumped 7% over the last month.
At the end of the first quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $48 million in Yext, Inc. (NYSE: YEXT), up from 11 the preceding quarter worth $30 million. Out of the hedge funds being tracked by Insider Monkey, Freshford Capital Management is a leading shareholder in Yext, Inc. with 1.4 million shares worth more than $20.4 million.
1. NETGEAR, Inc. (NASDAQ: NTGR)
Number of Hedge Fund Holders: 16
Topping the list of the 10 small-cap AI stocks is NETGEAR, Inc. (NASDAQ: NTGR), a California-based network system provider that was founded in 1996. The small-cap AI company markets home and business WiFis, powerline, switches, and network storage. In May 2021, NETGEAR, Inc.’s Orbi and Nighthawk product lines won an international product design award from Red Dot.
The company has a market cap of $1.7 billion. The company’s revenue in the first quarter of 2021 increased 38.3% to $317.9 million, up from $230 million in the first quarter of 2020. Strong demand for Wi-Fi 6 products was the primary driver of revenue growth. In the first quarter, the company shipped roughly 4.1 million systems, including 2.7 million wireless nodes. The company had $363.5 million in cash and cash equivalents as of March 28, 2021, with $361.3 million in total current liabilities. NETGEAR expects revenues of $305 million to $320 million in the second quarter of 2021, up from $300 million to $315 million the previous quarter. The 52-week price range of NETGEAR, Inc. (NASDAQ: NTGR) is $23.20 – $46.38. On April 22, Florida-based investment banking firm Raymond James maintained an Outperform rating on NETGEAR, Inc., with a price target of $48 per share. Shares of NTGR jumped 52% over the past twelve months.
At the end of the first quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $38 million in NETGEAR, Inc. (NASDAQ: NTGR). Out of the hedge funds being tracked by Insider Monkey, Arrowstreet Capital is a leading shareholder in NETGEAR, Inc. with 1.4 million shares worth more than $15.1 million.
Snip
Best Small-Cap AI Stocks
10. Innodata Inc. (NASDAQ: INOD)
Number of Hedge Fund Holders: 4
Innodata Inc. (NASDAQ: INOD) is a New Jersey-based data engineering firm that was founded in 1988. It is placed 10th on our list of 10 small-cap AI stocks. The company resolves data challenges using machine learning and artificial intelligence. In addition, Innodata Inc. helps a variety of businesses in digital data distribution, medical record data extraction, and document analytics. Among the company’s biggest clients are business and financial firm Bloomberg and tech giant Apple Inc. (NASDAQ: AAPL).
The company has a market cap of $167 million. In the first quarter of 2021, the company’s total sales were $16 million, up 4% from $15.3 million in the fourth quarter of 2020. Innodata Inc. (NASDAQ: INOD) inked an amendment to its contract in March, agreeing to offer up to $7.0 million in AI services in 2021 to one of the world’s largest social media sites. The 52-week price range of Innodata Inc (NASDAQ: INOD) is $0.98 – $9.49. Shares of INOD surged 357% over the past twelve months.
Sponsored By : The Motley Fool
35 Times Bigger Than Amazon? This AI technology could be 35 times bigger than Amazon, and we think this it could create the world's first trillionaire. Read More
At the end of the first quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $7.2 million in Innodata Inc. (NASDAQ: INOD).
9. Alithya Group Inc. (NASDAQ: ALYA)
Number of Hedge Fund Holders: 4
Alithya Group Inc. (NASDAQ: ALYA) is a Montreal-based IT consulting company that was founded in 1992. It is placed ninth on our list of 10 small-cap AI stocks. Alithya Group Inc. primarily develops AI solutions to help businesses solve enterprise problems. The company offers business management consulting and enterprise solutions such as ERP and CRM. Alithya Group Inc. also provides application services such as digital application creation, software engineering, IT management, and cloud and network infrastructure monitoring and upgrade.
The company has a market cap of $210 million. Third-quarter revenue came in at $70.6 million, up from $66.2 million in the same period in 2019. In March, Alithya Group Inc. acquired Montreal-based digital solutions firm R3D Conseil Inc. for approximately $76 million. In addition, the company gained a $10.3 million information resources project management contract with a Québec government ministry in June. The 52-week price range of Alithya Group Inc. (NASDAQ: ALYA) is $1.45 – $5.47. Shares of ALYA increased 32% over the past twelve months.
At the end of the first quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $10.9 million in Alithya Group Inc. (NASDAQ: ALYA). Out of the hedge funds being tracked by Insider Monkey, Cleveland-based Ancora Advisors is a leading shareholder in Alithya Group Inc., with 2.78 million shares worth more than $6.7 million.
8. Magic Software Enterprises Ltd. (NASDAQ: MGIC)
Number of Hedge Fund Holders: 5
Magic Software Enterprises Ltd. (NASDAQ: MGIC) is an Israel-based software development company that was founded in 1983. It is placed eighth on our list of 10 small-cap AI stocks. The software firm creates cutting-edge software platforms for enterprise integration and the development of business apps. With over 30 years of experience, Magic Software Enterprises Ltd. has built strategic collaborations with global IT leaders such as Microsoft (NASDAQ: MSFT), salesforce.com, inc. (NYSE: CRM), and SAP SE (NYSE: SAP).
The company has a market cap of $784 million. The company’s revenue in the first quarter of 2021 increased 25.9% to $107.3 million, up from $85.2 million in the same quarter in 2020. For FY 2021, the company raised its revenue projection to $425 to $435 million, up from $420 to $430 million previously, showing annual growth of 13.5% to 17.2%. Shares of MGIC climbed 51% over the past twelve months. In March 2021, investment bank HC Wainwright & Co. analysts maintained a Buy rating for Magic Software Enterprises Ltd. with a price target of $20 per share. The 52-week price range of Magic Software Enterprises Ltd. (NASDAQ: MGIC) is $10.67 – $18.35.
At the end of the first quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $17.8 million in Magic Software Enterprises Ltd. (NASDAQ: MGIC).
Like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), NETGEAR, Inc. (NASDAQ: NTGR), Raytheon Technologies Corporation (NYSE: RTX), Royal Dutch Shell plc (NYSE: RDS-A), 3M Company (NYSE: MMM), and Baker Hughes Company (NYSE: BKR), Magic Software is set to gain from the AI revolution.
7. CooTek (Cayman) Inc. (NYSE: CTK)
Number of Hedge Fund Holders: 5
CooTek (Cayman) Inc. (NYSE: CTK) is a Shanghai-based mobile app developer that was founded in 2008. It is placed seventh on our list of 10 small-cap AI stocks. The Chinese tech firm is a rapidly expanding mobile internet firm that creates mobile apps and artificial intelligence software. One of CooTek’s flagship mobile app products is the TouchPal Smart Input keyboard, with over 154.6 million monthly active users. While the company’s portfolio products have 58.6 million monthly active users.
The company has a market cap of $133 million. First-quarter net revenue came in at $81.6 million. Cash, cash equivalents, and restricted cash were $56.1 million as of March 31, 2021, up from $49.6 million as of December 31, 2020. CooTek (Cayman) Inc. expects total net revenue to be around US$83 million in the second quarter of 2021. The 52-week price range of CooTek (Cayman) Inc. (NYSE: CTK) is $1.75 – $7.25.
At the end of the first quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $2.7 million in CooTek (Cayman) Inc. (NYSE: CTK), up from 2 the preceding quarter worth $226,000.
Like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), NETGEAR, Inc. (NASDAQ: NTGR), Raytheon Technologies Corporation (NYSE: RTX), Royal Dutch Shell plc (NYSE: RDS-A), 3M Company (NYSE: MMM), and Baker Hughes Company (NYSE: BKR), CTK is set to gain from the AI revolution.
6. Ideanomics, Inc. (NASDAQ: IDEX)
Number of Hedge Fund Holders: 7
Ideanomics, Inc. (NASDAQ: IDEX) is a New York-based fintech company that promotes the adoption of commercial electric vehicles and was founded in 2004. It is placed sixth on our list of 10 small-cap AI stocks. The fintech company offers EVs and motorbikes to charging infrastructure and EV farming items like tractors. As Ideanomics, Inc. (NASDAQ: IDEX announced an acquisition arrangement with U.S. Hybrid, a business that develops and provides fuel cells, drive trains, and other components for zero-emission autos, Reddit traders have been more interested in the small-cap AI stock.
Ideanomics, Inc. (NASDAQ: IDEX has a market cap of $1.2 billion. The company’s revenue in the first quarter of 2021 came in at $32.7 million, up from $378,000 in the first quarter of 2020. The AI penny stock presently has a Buy recommendation from Roth, which set a $7 price target for it in April 2021. The 52-week price range of Ideanomics, Inc. (NASDAQ: IDEX) is $0.55 – $5.53. As of June 4, the stock closed at $2.86 a share. Shares of IDEX stock have climbed by more than 745% over the past twelve months.
At the end of the first quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $20.8 million in Ideanomics, Inc. (NASDAQ: IDEX), up from 5 the preceding quarter worth $3.41 million.
Like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), NETGEAR, Inc. (NASDAQ: NTGR), Raytheon Technologies Corporation (NYSE: RTX), Royal Dutch Shell plc (NYSE: RDS-A), 3M Company (NYSE: MMM), and Baker Hughes Company (NYSE: BKR), IDEX is set to gain from the AI revolution.
News 
Market Data 
Discover 
