Key Takeaways
- There are more and more small cap AI stocks that focus on the development and infrastructure of the industry rather than the products themselves
- We analyzed each stock's revenue and profit-to-sales ratio to gain a better understanding of each stock's value in the market
- We see companies working on quantum technology as showing strong signs of potential future growth, especially in the field of AI
Introduction
Artificial intelligence (AI) continues to revolutionize industries worldwide, from healthcare and finance to robotics and quantum computing. While large-cap AI stocks often dominate headlines, small cap AI stocks are increasingly attracting attention from investors seeking high-growth opportunities. These companies, often under $2 billion in market cap, are developing innovative AI products, infrastructure, and services that could shape the future of technology.
In this article, we’ll explore the top soaring AI stocks currently making waves in the market, highlight what makes them unique, and provide insights into how investors can leverage Intellectia, an AI-driven insights platform, to identify promising small AI companies and make informed investment decisions.
What Are Small Cap AI Stocks?
In essence, they are no different from large-cap stocks, or any other stocks for that matter. Small-cap AI stocks are generally stocks of companies that focus on AI as their products or services. The differentiator will be down to where they are listed, similar to penny stocks, and the overall valuation of the AI stock.
Criteria for Selecting the Best Small Cap AI Stocks
Generally, a small cap stock is considered to have a market cap of between $250 million and $2 billion USD. Our criteria are based on:
- The size of the stock's market cap must be between $250 million and $2 billion as of writing this article.
- The company must be engaged in the development or sale of AI-related products or services.
- For intent purposes, we have also selected these stocks based on being US-listed.
Understandably, you may have more criteria that you follow when selecting these types of stocks. There are certainly more ways to screen out stocks based on more in-depth criteria. However, I have found this to be the fastest way to identify the small cap stocks I am looking for.
Top Small Cap AI Stocks to Watch in 2026
| Company | Ticker | Sector | Market Cap |
|---|---|---|---|
| Sonos Inc | SONO | Technology, Technology Equipment | $1.73 billion |
| Knowles Corp | KN | Technology, Technology Equipment | $1.76 billion |
| D-Wave Quantum Inc | QBTS | Technology, Software & IT Services | $1.8 billion |
| Marqeta | MQ | Technology,Financial Technology (Fintech) & Infrastructure | $1.91 billion |
| Silicon Motion Technology Corp | SIMO | Technology,Technology Equipment | $1.70 billion |
Sonos Inc (SONO)
Sonos is a company that specializes in sound products such as speakers, headphones, and stereos. Their products contain embedded AI for speech-to-function activities, similar to how the Alexa home system works.
The Sonos voice assistant AI is an extremely limited feature and is entirely restricted by its scope of knowledge to the music industry, leading to other voice-aided competitors to outbeat Sono's AI. This could be a reflection of its recently declining YoY revenues and profit margins.
With a roughly 8.4% decrease in revenue through 2024 vs 2023, and a 3.7% decrease in profit margins over the same period, Sonos's stock might be in trouble. However, with revenue of $1.54 billion and a $1.7 billion market cap indicating a 1.12 profit-to-sale (P/S) ratio, this signals a potentially strong buying opportunity in the stock.
Knowles Corp (KN)
Knowles Corp is another company that focuses on sound, but in a different sense. They develop audio and precision devices designed for consumers and businesses in the electronics, MedTech, and defence industries.
The company has recently directed its focus toward the AI industry, developing products for AI speech, audio, sensor, and vision applications. Their more commonly known processing chip the AISonic™ IA8201 is an industry-first mobile-centric audio processor.
With a 4.2% increase in revenue between Q1 and Q2 of 2024, the company is showing small signs of growth. With a P/S ratio of 2.32 Knowles's stock price is still below the overvalued range. However, this stock may be good for short-term trading rather than long-term depending on the company's financial results.
D-Wave Quantum Inc (QBTS)
D-wave is a company focused on developing quantum technology and offering it to businesses around the world. They offer access to a quantum computer that has 5000 qubits and 1 million variables and offer 100s of applications via their cloud services.
In a world where quantum computing has not yet become mainstream, D-wave has a long way to go. Most recently, the Founder and CEO of Nvidia proclaimed quantum technology will not be fully accessible for at least another 30 years. This negative sentiment echoed across the stock market, leading to a drop in quantum stocks.
On the other hand, although investors can only speculate, many people are bullish on quantum technology's future prospects, leading to D-wave being a strong contender to see growth throughout 2025 and over the next several years, as the technology matures.
Marqeta (MQ)
Marqeta is a fintech company focusing on offering payment infrastructure to its clients, through customizable platforms that suit the needs of businesses and enterprises, allowing businesses to build their own financial platforms to streamline their financial payment needs.
Marqeta's generative AI is built based on OpenAI's large language model (LLM) and is designed as a Q&A tool for Marqeta's customers to better navigate and integrate its platform into their businesses.
In Q3 of 2024 Marqeta saw an 18% increase in revenue compared to Q3 of 2023, marking slight growth in sales. However, the company's P/S ratio is at 3.87, indicating the stock is potentially overvalued. If you're looking to trade Marqeta stock, it might be worth waiting for a lower entry point.
Silicon Motion Technology Corp (SIMO)
Silicon Motion is a company that specializes in storage solutions, most notably solid-state drives (SSDs). The company's products offer solutions for many types of industries, from consumer electronics to storage solutions for autonomous cars.
The company has announced its dedication to providing more storage solutions for AI applications looking to store and access large amounts of data and information. This has led to investor speculation on the stock in the hopes of seeing an increase in sales.
Silicon Motion has seen consistent growth in revenue between Q1 and Q3 of 2024. Marketing a steady increase in sales throughout the year. With a P/S ratio of 2.09, the company is hovering between the undervalued and overvalued zones. This small cap AI stock might be worth monitoring throughout 2025.
Further Considerations for Investing in Small Cap AI Stocks
It can often be daunting when researching AI stocks, considering many of them are basically wrappers of OpenAI's LLM. However, you must look closer at the industry as a whole, as there is a wide variety of infrastructure needed to develop and maintain the growth of AI applications.
For example, companies such as D-wave may widen the scope in which AI can run its calculations bringing us new innovative technologies in the field of medicine and robotics. Or with companies such as Silicon Motion that offer storage solutions for AI-based data and information.
A lot of these small cap AI stocks have potential, albeit a lot of speculative potential, and there are hundreds more small cap AI stocks out there that you can find yourself by using platforms such as Intellectia, an AI-driven insights tool for investors such as yourself.
Conclusion
The world of small-cap AI stocks is dynamic and full of opportunities for investors willing to take calculated risks. From consumer AI products (Sonos) to fintech infrastructure (Marqeta) and quantum computing (D-Wave), these small AI companies are shaping the future of technology.
For those looking to discover the best small cap AI stock, Intellectia provides actionable insights, real-time analytics, and curated lists of microcap and small-cap AI companies, empowering investors to make informed decisions while navigating a complex and rapidly evolving market.
