Revisiting 5 Small Cap AI Stocks: Still Buys?

Welcome to Episode #458 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey is joined by Zacks Small Cap Analyst, Mark Zinski, to revisit 5 small cap companies they have looked at on the podcast over the last year. All 5 companies have business with AI, either in products or in the infrastructure.

Over the summer, there was some “AI stock fatigue” so some stocks had pullbacks. One is trading near its all-time lows.

Is this a buying opportunity in these 5 stocks?

Revisiting 5 Small Cap AI Stocks

1. Autoscope Technologies Corp. (AATC)

Autoscope Technologies is a microcap with a market cap of $39.8 million. It has the Intellisight Platform.

Autoscope Technologies does not have a Zacks Rank. But it does pay a dividend of $0.60 per share. This is yielding 8.4%.

Shares of Autoscope are down 11% year-to-date.

Is Autoscope Technologies a deal?

2. Duos Technologies Group, Inc. (DUOT)

Duos Technologies is in rail and logistics but is also moving into a new business segment of mobile gas turbines. These turbines are often being used to power data centers.

Duos Technologies has a market cap of $135.5 million. At the end of the second quarter, it had a backlog of $40.7 million.

Shares of Duos Technologies are up 178% over the last year. It is a Zacks Rank #3 (Hold).

Should AI stock investors have Duos Technologies on their watch list?

3. FiscalNote Holdings, Inc. (NOTE)

FiscalNote is a small cap company with a market cap of $67 million. It specializes in public policy software.

Shares of FiscalNote are down 67% over the last year. It’s trading under $5 near its all-time lows.

But FiscalNote is a Zacks Rank #2 (Buy) stock.

Should FiscalNote be on your AI stock watch list?

4. TSS, Inc. (TSSI)

TSS, Inc. is a data center services company. It has a market cap of $343 million but no Zacks Rank.

In the second quarter TSS grew its revenue 262% to $44 million. Shares of TSS are up 188% over the last year. But over the prior month, shares are down 28.5%.

Is TSS a deal after the sell-off?

5. Innodata Inc. (INOD)

Innodata is a global data engineering company. It has a market cap of $1.5 billion. Innodata has a Zacks Rank of #3 (Hold).

In the second quarter of 2025, organic revenue was up 79% year-over-year.

Shares of Innodata have been red-hot. It is up 275.8% in the last year, gaining 23.2% in the prior month.

Innodata has a forward P/E of 57.

Should Innodata be on your short list?

What Else Should You Know About Small Cap AI Stocks?

Tune into this week’s podcast to find out.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research