The artificial intelligence revolution continues to grow in strength with no end in sight for a phenomenon that has taken the world by storm. While more than half of the Fortune 100 companies have already introduced some form of generative AI into their business, new businesses are cropping up, giving rise to unique investment opportunities.

Artificial Intelligence Revolution

Stocks with exposure to the game-changing technology have already exploded, led by Nvidia, which is already up by more than 40% for the year after gaining nearly 200% last year. It can be unclear which companies to invest in to gain exposure to the nascent yet burgeoning sector of the global economy.

While artificial intelligence plays provide the hardware needed to support and power the technology, such as chips, software plays are embedded deep into the AI revolution. The market for AI technologies was estimated to be worth $200 billion as of last year and is projected to grow beyond $1 trillion by 2030.

While Nvidia, Microsoft, and Alphabet have been the center of attention when it comes to artificial intelligence, small AI companies are worth adding to any investment portfolio. Small-cap stocks provide a way out for investors searching for the next big thing around generative AI, given their potential for outsized returns down the road.

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Small-cap AI stocks are, at times, a perfect fit for investors willing to take on more risks with prospects of more potential rewards down the road.

Palantir Technologies Inc. (NYSE:PLTR)

While many stand-out AI plays trade for hundreds of dollars, Palantir Technologies goes for just $22 a share despite being one of the big players in the software application business. After doubling in value last year, the stock remains ascending, going by its growing AI exposure.

The company offers software platforms for the intelligence community to help with counterterrorism investigations and operations. It’s already embedding AI into its solutions to enhance its ability to identify patterns hidden deep within datasets.

Nio Inc. (NYSE:NIO)

While attention is always on Tesla regarding self-driving cars, Nio is increasingly leaving up to expectations as an AI play. The Chinese automaker is increasingly leveraging generative AI to develop intelligent vehicles as it looks to rival Tesla in the high-end market. The company has already unveiled sports cars, SUVs, and sedans that blend traditional and autonomous driving features powered by artificial intelligence.

Consequently, it is one of the cheapest plays for gaining exposure to the auto industry as artificial intelligence takes over the development of smart cars. The stock trading for about $5 a share underlines the undervaluation going by the AI prospects.

AudioEye’s (NASDAQ:AEYE)

AudioEye is a technology company that provides internet content publication, distribution software, and related software for the internet and other media. The growing demand for digital accessibility solutions has put it in a prime position as it has started using artificial intelligence to perform automated testing for web accessibility.

Its solutions elicit strong interest as they are critical for clients to maintain digital compliance. Consequently, the company has continued to deliver record revenue, underlining strong demand for its solutions.

FiscalNote Holdings Inc. (NYSE:NOTE)

Few people might have heard of FiscalNote Holdings, a small tech company employing about 700 full-time employees. The company is increasingly gaining prominence owing to its AI-powered products and services eliciting strong interest from law firms, government agencies, and Fortune 100 companies.

The company’s solutions and products use AI machine learning and analytics to help companies better manage policy and regulatory environments. Its AI-powered solutions also help clients stay updated with current news and events. While trading for just $1.67 a share, it could be a bargain for investors looking to take up some risk.

UiPath‘s (NYSE:PATH)

UiPath has made a name for itself by offering an end-to-end automation platform that allows clients to automate various repetitive tasks. Likewise, the company has started using AI in its software to help enterprises streamline repetitive tasks. It remains well-positioned to challenge Salesforce when it comes to workplace automation and efficiency.

For instance, its AI-powered RPA technology is designed to reduce the time required to file repetitive legal documents. Its revenues were up by 24% in the third quarter, attributed to strong demand in the market.

SoundHound AI (NASDAQ:SOUN)

In the burgeoning world of voice-enabled products, SoundHound AI is one company that stands out and is a bargain for investors looking to invest in AI plays. The company is leveraging generative AI to develop voice-enabled products.

Its products stand out because people can customize them using automatic speech recognition and embedded solutions. Likewise, SoundHound solutions have become the voice recognition software for top brands.

Nerdy Inc. (NYSE:NRDY)

In the $200 billion online learning market, Nerdy Inc. uses generative AI technology to create a marketplace for learners and educators. The company is increasingly leveraging the technology to match students’ parents, other users, tutors, and education professionals.

With over 3,000 lesson subjects, the company is among the biggest winners amid the AI revolution as everything moves online, especially in the education industry.

Lantronix’s (NASDAQ:LTRX)

Trading for just $4 a share, Lantronix is an emerging technology company that’s staring at a multibillion-dollar opportunity amid the AI revolution. The company’s edge stems from using AI-powered computer equipment and software to supply solutions for the Internet of Things.

Many of its clients are leveraging its AI-powered solutions for remote environmental management through video surveillance robotics and trade management. It stands out as one of the best small-cap AI plays, boasting clients from various industries, from hospitality to manufacturing.

Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)

While it can take ten to fifteen years to bring new drugs to the market, artificial intelligence promises to shorten the period. Recursion Pharmaceuticals is one company that has started leveraging artificial intelligence technology to expedite the drug development process.

The company has already unveiled the Recursion Operating System platform powered by AI, which has 23 petabytes of biological and chemical data that promises to enhance the drug discovery process. The platform can analyze oceans of data to identify relationships and patterns that standard methods would struggle with. Nvidia’s investment of $50 million in the company further affirms why it is a hot prospect around AI.

DarioHealth Co (NASDAQ:DRI)

DarioHealth is another healthcare play with some exposure to artificial intelligence technology. The company is using AI to enhance the monitoring and management of chronic illnesses. It has already unveiled an AI-powered platform enabling personalized treatment for chronic diseases like diabetes.

Its AI-powered platform can identify problems and provide real-time feedback solutions in addition to offering metabolic musculoskeletal and behavioral health solutions.

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