Revisiting 5 Small Cap AI Stocks: Are They Still Buys?
ByAinvest
Wednesday, Sep 10, 2025 1:35 pm ET1min read
DUOT--
Autoscope Technologies Corp. (AATC)
AATC, focused on AI-driven autonomous vehicle technology, has seen mixed performance. The company's market cap has fluctuated, reflecting the volatility inherent in the autonomous vehicle sector. Despite the challenges, AATC's strategic partnerships and technological advancements offer long-term growth potential [1].
Duos Technologies Group (DUOT)
Duos, specializing in AI and machine learning infrastructure, has shown resilience despite market turbulence. The company's strong balance sheet and strategic focus on edge computing and AI hardware position it well for future growth. However, the stock's recent underperformance underscores the need for continued innovation and market acceptance [1].
FiscalNote Holdings (NOTE)
NOTE, known for its AI-powered financial intelligence platform, has experienced significant volatility. The company's recent earnings reports indicate a decline in revenue and profitability, attributed to market conditions and operational challenges. Despite these setbacks, NOTE's unique value proposition and strong customer base present opportunities for recovery [1].
TSS, Inc. (TSSI)
TSSI, offering AI-driven software solutions for the financial services industry, has faced market headwinds. The company's stock price has declined, reflecting broader sectoral concerns and competitive pressures. However, TSSI's focus on enterprise solutions and strategic partnerships could drive future growth [1].
Innodata Inc. (INOD)
INOD, a leader in AI data services, has been expanding its footprint in the enterprise market. The company's shift towards Agentic AI and smart data services positions it well for growth. Recent wins with major technology customers and investments in custom pipelines and safety evaluation platforms indicate strong momentum. However, INOD's stock price has declined, reflecting broader market conditions and valuation concerns [1].
Conclusion
The AI sector's recent pullbacks have tested the resilience of small-cap stocks. While many of these companies face challenges, their unique value propositions and strategic positions offer long-term growth potential. As AI continues to transform various industries, investors should closely monitor these stocks for signs of recovery and growth opportunities.
References
[1] "Innodata Inc. (INOD) - The Next Phase of Enterprise Adoption," Nasdaq (September 2025).
NOTE--
This week's podcast revisits five small-cap AI stocks with business ties to AI, either in products or infrastructure. The stocks include Autoscope Technologies Corp. (AATC), Duos Technologies Group (DUOT), FiscalNote Holdings (NOTE), TSS, Inc. (TSSI), and Innodata Inc. (INOD). The podcast discusses the stocks' market performance and whether they are still buy-worthy after some experienced "AI stock fatigue" and pullbacks over the summer.
As the AI sector continues to evolve, investors are closely monitoring small-cap stocks with significant ties to AI products and infrastructure. This week's podcast revisits five such companies: Autoscope Technologies Corp. (AATC), Duos Technologies Group (DUOT), FiscalNote Holdings (NOTE), TSS, Inc. (TSSI), and Innodata Inc. (INOD). The discussion evaluates their market performance and whether they remain buy-worthy after recent pullbacks.Autoscope Technologies Corp. (AATC)
AATC, focused on AI-driven autonomous vehicle technology, has seen mixed performance. The company's market cap has fluctuated, reflecting the volatility inherent in the autonomous vehicle sector. Despite the challenges, AATC's strategic partnerships and technological advancements offer long-term growth potential [1].
Duos Technologies Group (DUOT)
Duos, specializing in AI and machine learning infrastructure, has shown resilience despite market turbulence. The company's strong balance sheet and strategic focus on edge computing and AI hardware position it well for future growth. However, the stock's recent underperformance underscores the need for continued innovation and market acceptance [1].
FiscalNote Holdings (NOTE)
NOTE, known for its AI-powered financial intelligence platform, has experienced significant volatility. The company's recent earnings reports indicate a decline in revenue and profitability, attributed to market conditions and operational challenges. Despite these setbacks, NOTE's unique value proposition and strong customer base present opportunities for recovery [1].
TSS, Inc. (TSSI)
TSSI, offering AI-driven software solutions for the financial services industry, has faced market headwinds. The company's stock price has declined, reflecting broader sectoral concerns and competitive pressures. However, TSSI's focus on enterprise solutions and strategic partnerships could drive future growth [1].
Innodata Inc. (INOD)
INOD, a leader in AI data services, has been expanding its footprint in the enterprise market. The company's shift towards Agentic AI and smart data services positions it well for growth. Recent wins with major technology customers and investments in custom pipelines and safety evaluation platforms indicate strong momentum. However, INOD's stock price has declined, reflecting broader market conditions and valuation concerns [1].
Conclusion
The AI sector's recent pullbacks have tested the resilience of small-cap stocks. While many of these companies face challenges, their unique value propositions and strategic positions offer long-term growth potential. As AI continues to transform various industries, investors should closely monitor these stocks for signs of recovery and growth opportunities.
References
[1] "Innodata Inc. (INOD) - The Next Phase of Enterprise Adoption," Nasdaq (September 2025).
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