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Barchart
Aditya Raghunath

This Under-$5 AI Stock Is Joining the Russell 2000 Index. Should You Buy It Now?

Rezolve Ai (RZLV) is making waves in the AI enterprise software space, as the tech stock joined the Russell 2000 and Russell 3000 indexes effective today, June 27.

Valued at a market cap of $614.4 million, Rezolve Ai announced in June that it achieved annual recurring revenue of $70 million and expects to surpass $100 million in ARR by the end of 2025. Its strategic partnerships with tech giants Microsoft (MSFT) and Google (GOOGL)have bolstered Rezolve’s credibility. The company integrated its proprietary Brainpowa large language model into Microsoft Azure and expanded distribution through Google Cloud Marketplace, providing scale opportunities.

 

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The Russell index inclusion is noteworthy, as these benchmarks have attracted over $10.6 trillion in institutional assets. The index inclusion increases visibility among institutional investors and can drive the AI stock higher in the near term. 

CEO Daniel Wagner emphasized that joining the Russell indexes reflects “rapidly growing investor recognition” of its AI-powered commerce solutions, which target the retail, logistics, and financial services sectors.

However, investors should exercise caution when investing in small-cap AI stocks, as volatility remains high amid rising competition. So, let’s see if you should buy Rezolve AI stock right now. 

Is Rezolve Stock a Good Buy Today?

Rezolve is positioning itself at the forefront of the AI-driven commerce transformation through its comprehensive Brain Suite platform. 

Its strategic approach centers on its proprietary Brain Suite, featuring three core components: Brain Commerce for AI-powered conversational commerce, Brain Checkout for seamless engagement platforms, and Brain Assistant for intelligent knowledge management. This integrated approach addresses critical pain points in the e-commerce customer journey, from initial search to final transaction.

Its partnerships with Microsoft and Google provide leverage, as cloud customers can apply their existing commitments toward Rezolve subscriptions while sales teams receive incentives to promote the Brain Suite.

Rezolve’s collaboration with Tether (USDTUSD) to develop merchant-friendly cryptocurrency payment solutions should eliminate transaction fees while expanding payment options. This initiative could disrupt the traditional payments landscape and create additional revenue streams.

Rezolve has strengthened its capital structure by eliminating convertible debt and securing a $30 million bank facility, providing the financial runway necessary for aggressive expansion. 

While Rezolve reported an EBITDA loss of $44 million in 2024, it expects to break even in 2025. Rezolve AI represents a compelling growth story in the rapidly expanding AI solutions market, targeting the estimated $480 billion to $540 billion global opportunity for generative AI.

What Do Analysts Say About the AI Stock? 

Each of the five analysts covering RZLV stock recommends a “Strong Buy.” The analysts have an average stock price target of $5.65 for the tech stock, 110% above the current price. 

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