The artificial intelligence trade continues to dominate Wall Street, and AI hyperscalers are responsible for much of the gains the S&P 500 has produced so far in 2025.
Companies like Meta Platforms (NASDAQ:META), NVIDIA (NASDAQ:NVDA), Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG) are soaring once again in Q3, but these are not the only AI-related companies worth looking at as the year draws to a close.
If you want outsized gains from your AI investments, you'll have to swim into waters where fewer fish are biting. Today, we'll examine five under-the-radar AI stocks that could significantly boost your portfolio.
Each of these companies has a market cap of $6 billion or less, and a fundamental or technical catalyst that makes them worth watching in the weeks ahead.
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Innodata Inc.
Let's lead off with a company that might not be flying under the radar for much longer. Innodata (NASDAQ:INOD) is riding an impressive two-week winning streak that has seen its share price nearly double. The company is a $2 billion market cap data solutions provider, with one of its primary revenue streams coming from AI data collection. Innodata's Digital Data Solutions (DDS) segment helps collect and prepare AI training data for deployment in client-specific systems while also offering data extraction, curation, and consolidation services.
INOD reported Q2 earnings on July 31 and posted an impressive EPS number that beat estimates by more than 66%. Revenue also came in nearly 4% higher than expected, and the company raised its full-year guidance projections. Innodata expects the impressive sales growth to continue in Q3 and Q4 as demand for high-quality training data sets continues to soar, especially at Magnificent Seven companies. Technical trends are promising as well; the stock's recent mega-rally sent shares flying above both the 50-day and 200-day simple moving averages (SMAs) with a MACD cross confirming the uptrend. The stock's Benzinga Edge scores are also promising, with a 99.79 Growth score and a 97.86 Momentum score.
Veritone Inc.
Veritone (NASDAQ:VERI) is one of the smallest companies on our list, with a market cap under $250 million and total annual sales averaging under $95 million. But its potential is large thanks to its proprietary AIWARE operating system. This AI-powered tool can catalog large databases (such as those found in government or media) and generate actionable advice based on their contents. Analysts at D. Boral Capital upgraded the stock to a Strong Buy with a price target of $6, which is nearly 66% higher than the current market price. However, this rally actually began back in July when some technical trends came into focus.
The stock's bullish momentum began this summer when a MACD cross broke the share price above its 50-day SMA for the first time since February. A volatile uptrend began materializing, highlighted by parabolic spikes followed by multiday drawdowns. But the overall trend remained in place, and now a Golden Cross has formed as the 50-day SMA overtook the 200-day SMA for the first time in 2025. Technical traders have been buying shares on every pullback for a few months now, and this trade still looks promising moving forward.
Rekar Systems Inc.
Rekar Systems (NASDAQ:REKR) is another small-cap stock with huge potential. The $185 million market cap startup firm develops AI systems to aid in vehicle recognition technology. Its most common client is local governments that use the tech in toll plazas, checkpoints, and other facilities where quick vehicle ID is crucial. Most of the company's clients are American governments, but it also scored a patent deal in Europe earlier this year for managing traffic congestion.
Rekar remains an unprofitable company, but its earnings release on August 12 showed its narrowest EPS loss since going public (losing 7 cents per share). It's also a consensus Buy based on the three analysts covering the stock, with an average price target more than double the current price ($4 average target). REKR shares are the latest AI small-cap to break out in a big way, and the stock now trades comfortably above its 50-day and 200-day SMAs. Any worries about a false breakout can be assuaged by the MACD, which confirms the bullish price action.
BigBear.ai Holdings Inc.
Now, let’s return to the billion-dollar companies with BigBear.ai Holdings (NASDAQ:BBAI), a $2 billion market cap software solutions provider that utilizes AI to power its systems. Despite its relatively large market capitalization, the company generated only $158 million in sales last year. However, investors are more interested in the company's potential than its past, and despite recent earnings misses, the stock appears poised for another leg higher.
BigBear Holdings was a popular breakout candidate when markets turned around in April following the Trump tariff pause. The stock broke out to new highs over $8 per share before breaking back down below the 50-day SMA. However, BBAI has now found support at the 200-day SMA, and a break back above the 50-day seems imminent, based on the confirmation from the MACD.
SoundHound AI Inc.
SoundHound (NASDAQ:SOUN) is the largest company on our list, thanks to a market capitalization north of $6 billion and earnings figures that are approaching profitability. In the company's most recent earnings release, it posted an EPS loss of 3 cents, which was 57% better than the projected 7-cent loss. The $42.68 million in revenue was also a quarterly record for the company, and the stock received several price upgrades from analysts following the August 7 release. HC Wainwright and Co. raised their price target again this week to a Street-high $18, which represents upside of more than 15% from current levels.
Bullish momentum is back on the daily stock chart as well. A pullback occurred following an Overbought signal from the Relative Strength Index (RSI), which sent the price back to the 50-day SMA support level. But the stock found support at the 50-day SMA once again, buoyed by a Golden Cross and revived momentum on the RSI.
Editorial content from our expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.
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