Small-Cap AI Stocks On The Rise: 3 Hidden Gems You Shouldn't Miss

The AI revolution is here and it’s not just the tech giants making waves. Small-cap stocks are carving out their niches, delivering impressive returns and innovative solutions that are too compelling to ignore. Here are three small-cap AI stocks you'll want to keep an eye on.

SoundHound AI: The Voice Behind The Future

SoundHound AI Inc SOUN has been on fire this year, with its stock surging 140% year-to-date as of Aug. 16. But this isn't just a lucky break; SoundHound is redefining how we interact with technology. Specializing in voice-based AI, SoundHound's technology allows users to do everything from placing a drive-thru order to booking a hotel room, all through natural voice commands.

What's fueling this growth? Strategic partnerships are at the heart of it. The company has teamed up with Nvidia Corp to bring AI assistance into vehicles without requiring connectivity and is working with Stellantis NV to integrate voice-assisted chat across brands like Fiat and Jeep.

With a market cap of $1.80 billion, SoundHound is proving that voice AI isn't just the future—it's the present.

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Helix Energy Solutions: Cleaning Up With AI

Oil rigs and AI might sound like an odd couple, but Helix Energy Solutions Group Inc. HLX is turning that pairing into a winning combination.

Up 7.3% year-to-date, Helix is leveraging AI to tackle one of the most critical challenges of our time: environmental cleanup. The company uses AI to enhance the efficiency and safety of decommissioning oil rigs and wells—a less glamorous, but essential service as the world pushes toward greener practices.

With a market cap of $1.61 billion, Helix may not be the flashiest stock, but its role in cleaning up the planet, powered by AI, makes it a solid pick for socially conscious investors.

Innodata: Data-Driven AI For Tomorrow's Enterprises

Innodata Inc. INOD is a small-cap player that’s turning heads with a staggering 118% YTD gain as of Aug, 16. The company, valued at $494.84 million, is a powerhouse in data engineering, with a sharp focus on generative AI. Innodata's recent 66% year-over-year revenue growth, combined with its boosted full-year guidance, is a testament to its expanding footprint in the AI space.

Innodata is betting big on its ability to provide enterprises with the data services needed to adopt AI technologies. With its Digital Data Solutions leading the charge, Innodata is poised to help companies transition into an AI-driven future.

As AI continues to dominate headlines, these small-cap stocks are quietly making big moves, offering investors a chance to get in on the ground floor of the next wave of innovation.

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Image created using artificial intelligence via Midjourney.