Top 5 Small-Cap A.I. Stocks in 2022 -4The power of artificial intelligence knows no limits.
With its adoption and uses increasing at an exponential rate, A.I. is inevitably becoming the standard for how businesses operate to maximize growth and productivity.
Don’t believe us?
According to PwC, 45% of the total economic gains by 2030 are expected to come from product enhancements made by artificial intelligence technology, adding as much as $15.7 trillion to the global economy.
While these numbers are staggering, A.I. technology remains in its infancy, with many of its uses yet to be discovered.
Therefore, this is the perfect opportunity to take advantage of this unprecedented trend by investing in small-cap stocks that are already demonstrating success in this market.
The possibilities are endless.
Reasons to Invest in Small-Cap A.I. Stocks
The artificial intelligence sector is composed of a variety of businesses stretching from deep learning machines to robotics.
Since there are many large-cap companies competing in the market like Microsoft (MSFT), Amazon (AMZN), Google (GOOG), etc., it is important for small-cap A.I. stocks to carve out their own niche in the space.
That being said, it is evident that many small-cap companies are finding success addressing the A.I. needs of businesses and consumers because of the truly vast market that exists with its many unique and complex challenges to resolve.
According to Exploding Topics, one survey found that 87% of global organizations believe that AI technologies will give them a competitive edge.
Therefore, for an artificial intelligence small-cap business to succeed, its product or service must tackle a real-world problem, while effectively managing and developing invaluable proprietary data.
Those who are able to acquire the most in-depth insights and provide a competitive edge will ultimately offer consumers the greatest value in the market.
All-in-all this, “if you’re not first, you’re last” mentality will serve small-cap A.I. stocks well because the market is growing at such a rapid pace.
For more information on the advantages of small-cap stock investing, check out our article on what is a small-cap stock.
Top 5 Small-Cap Artificial Intelligence Stocks in 2022
1. Qudian (QD)
Market Cap: $323.16 million USD
Price: $1.28 USD
YTD Change: +32.09%
CEO: Min Luo
Qudian Inc. (NYSE: QD) is a leading fintech company in China that is helping revolutionize the online consumer finance experience.
By using big data-enabled technologies, like artificial intelligence, and machine learning, Qudian leverages its assets to reinvent and improve traditional finance practices.
- Revenue by Products:
- Financing Income = $197.0 mil (75.90%)
- Sales Commission Fee = $5.6 mil (2.14%)
- Sales Income & Others = $15.8 mil (6.09%)
- Penalty Fee = $10.6 mil (4.07%)
- Loan facilitation income = $6.8 mil (2.63%)
- Transaction Services Fee = $23.8 mil (9.17%)
- Debt to Revenue: 62.45%
- Price to Book Value: 0.16
- Operational Cash Flow (TTM): $136.58 million USD
2. Magic Software Enterprises (MGIC)
Market Cap: $962.88 million USD
Price: $19.25 USD
YTD Change: -8.03%
CEO: Guy Bernstein
Magic Software Enterprises Ltd. (NASDAQ: MGIC) is a one-stop-shop platform for businesses looking to quickly integrate their SaaS enterprise applications and automate their business processes.
The company provides proprietary application development, business process integration, vertical software solutions, and information technologies (IT) outsourcing software services around the globe.
- Revenue by Products:
- Software Sales = $30.93 mil. (6.44%)
- Maintenance & Technical Suppor = $36.15 mil. (7.53%)
- Consulting Services = $413.24 mil. (86.03%)
- Debt to Revenue: 12.93%
- Price to Book Value: 3.61
- Operational Cash Flow (TTM): $33.11 million USD
3. Netlist (NLST)
Market Cap: $756.96 million USD
Price: $3.27 USD
YTD Change: -49.30%
CEO: Chun Ki Hong
Netlist, Inc. (OTC: NLST) is a leading provider of high-performance memory subsystems, which use raw data to produce valuable business insights for clients.
They design, manufacture, and market their products to be cost-efficient, without sacrificing the superior performance of their high-density databases.
- Revenue by Products:
- Resale if Third-party products = $81.3 mil. (57.12%)
- Modular Memory Subsystems = $21.0 mil. (14.78%)
- License Fee = $40.0 mil. (28.10%)
- Debt to Revenue: 6.43%
- Price to Book Value: 15.23
- Operational Cash Flow (TTM): $11.52 million USD
4. Mitek Systems (MITK)
Market Cap: $414.64 million USD
Price: $9.35
YTD Change: -47.32%
CEO: Scipio Maximus Carnecchia
Mitek Systems, Inc. (NASDAQ: MITK) is bridging the physical and digital worlds by leveraging its patented imaging technologies.
They offer solutions in identity verification, and image capture technology, which is embedded in native mobile apps and web browsers to facilitate digital consumer experiences.
- Revenue by Products:
- Software & Hardware = $60.07 mil. (50.14%)
- Services & Other = $59.73 mil. (49.86%)
- Debt to Revenue: 108.06%
- Price to Book Value: 2.30
- Operational Cash Flow (TTM): $30.97 million
5. Digi International (DGII)
Market Cap: $921.68 million USD
Price: $26.27 USD
YTD Change: +6.92%
CEO: Ronald Konezny
Digi International Inc. (NASDAQ: DGII) provides business wireless communication solutions for optimizing data around the most advanced protocols and emerging technologies within the Internet of Things (IoT)
Using their products, Digi is a key player in transmitting trillions of bytes of data across the internet at an instantaneous rate.
- Revenue by Products:
- IoT Products & Services = $264.17 mil. (85.59%)
- IoT Solutions = $44.46 mil. (14.41%)
- Debt to Revenue: 21.64%
- Price to Book Value: 1.93
- Operational Cash Flow (TTM): $32.42 million USD