The artificial intelligence (AI) gold rush has minted trillion-dollar giants and thousands of money-losing start-ups, but the smartest money might be in the middle. Between Nvidia's nosebleed valuation and pre-revenue AI ventures lies a collection of profitable companies with real products, real customers, and market caps under $23 billion.
From edge chip design to Internet of Things (IoT) platforms, these nine under-the-radar AI stocks offer targeted exposure to AI's practical applications. Here's a brief rundown of each stock's core value proposition and key risks.
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The edge AI architect
Ceva (CEVA -1.03%) licenses edge AI silicon and software IP for vision, sensing, and wireless applications, operating on a royalty model that scales with customer shipments. The $590 million market cap company is a critical infrastructure play for embedded AI, yet it rarely appears in AI discussions in major media outlets.
The credit brain
Pagaya Technologies (PGY -8.20%) uses AI-driven credit decisioning for banks and fintechs, processing billions in loan volume with machine learning models that analyze alternative data. The $3.2 billion company quietly builds network effects while flashier fintech names grab headlines.
The defense contractor's AI arm
BigBear.ai (BBAI -4.01%) delivers predictive analytics and decision intelligence for defense and industrial customers through Department of Defense contracts. New DoD wins sit alongside recent guidance cuts tied to federal contract uncertainty, so expect volatility. The company is also working to expand into commercial use cases, but its fortunes remain closely tied to government budgets.
The ad-tech survivor
Perion Network (PERI 2.00%) pivoted hard into connected TV and retail media after Microsoft Bing changes crushed its search revenue, with Q2 2025 showing the first year-over-year growth in advertising solutions since Q3 2023. The $436 million company's new Performance CTV offering and 35% growth in digital out-of-home suggest the diversification is working, though legacy search headwinds persist.
The data plumbing provider
LiveRamp (RAMP 0.28%) operates the identity graph that powers AI-driven marketing, serving sticky enterprise customers who can't easily switch providers. This $1.7 billion "plumbing" play becomes more valuable as programmatic advertising increasingly relies on AI.
The product intelligence platform
Amplitude (AMPL 0.61%) combines product analytics with an AI copilot for behavioral insights, quietly embedding AI throughout its platform. The $1.4 billion company serves thousands of paying customers with strong product stickiness and expanding wallet share potential.
The IoT enabler
Tuya (TUYA) provides the IoT and cloud AI platform powering billions of smart devices in China with improving growth metrics. This $1.6 billion company offers exposure to the massive Chinese smart device market with minimal U.S. analyst coverage.
The multi-engine orchestrator
Veritone (VERI -5.91%) runs the aiWARE platform, orchestrating multiple AI engines for media and public sector niches. At just $270 million market cap, it's a contrarian bet on the platform approach to AI integration with optionality if contracts scale.
The fleet intelligence giant
Samsara (IOT -2.10%) combines AI with IoT for fleet management and industrial operations, serving over 20,000 customers with video-based safety and real-time analytics. The $22 billion company remains underappreciated outside IoT circles despite rapid growth in connected operations.
Beyond the hype cycle
These nine stocks won't make anyone rich overnight, but they offer exposure to rapidly growing AI businesses at reasonable valuations. The risks vary -- Veritone and Perion face execution challenges, Tuya carries China exposure, and BigBear depends on government contracts.
But spreading bets across multiple AI infrastructure plays reduces single-stock risk while maintaining upside to the broader AI theme. As the market matures beyond chatbots and specialized semiconductors, these picks-and-shovels providers could deliver strong returns in the years ahead.
