Unlocking the Future: Top 4 Smallcap AI Stocks Set for Explosive Growth

Investing trends often shift, yet one trend that stands out is the surge in stocks linked to artificial intelligence (AI). From crafting professional headshots to generating engaging content, AI’s potential is immense. Unlike many trends that fade, AI’s influence appears set for long-term impact, particularly for companies showcasing consistent revenue and profit growth driven by AI integration.

The buzz surrounding AI Is more than just hype. For example, tech giant NVIDIA’s remarkable rise in value, driven largely by its pioneering work in AI technology, demonstrates AI’s transformative power. This trend is not isolated; numerous companies are eager to harness AI’s potential, including smallcap stocks. This article will delve into four smallcap AI stocks poised for explosive growth.

1 Newgen Software

Newgen Software Technologies, a global software company, is first on our list. The company specializes in product development, including end-to-end workflow automation solutions, covering document management to imaging.

Operating in the field of intelligent automation, Newgen integrates AI into its core platform, NewgenONE, instead of offering standalone AI solutions. NewgenONE is a unified low-code, cloud-based digital transformation platform designed to build digital enterprise experiences. Low code refers to a visual approach to application development that requires minimal coding, enabling enterprises to customize their applications with minimal training.

NewgenONE’s core products include contextual content services, low-code process automation (BPM), omnichannel customer engagement (CCM), and AI cloud. This platform helps develop and deploy complex, content-driven, customer-engaging business applications on the cloud, with diverse use cases across industries, from onboarding to service requests and lending to underwriting.

Notably, Newgen leverages AI-powered chatbots for 24/7 customer support and personalized interactions. Recently, on May 30, 2024, Newgen launched LumYn, a Gen AI-powered hyper-personalization platform designed for the banking sector, aiming to enhance profitability and improve customer experiences for banks globally.

Newgen’s primary clients include the banking sector, contributing 66% of its revenue, followed by government and PSUs (9%), and the insurance sector (8%). The company plans to enhance its existing products and expand its AI portfolio.

2 Zensar Technologies

Next on the list is Zensar Technologies, a leading technology and digital solutions company offering a range of IT and business process outsourcing (BPO) products and services. Zensar caters primarily to three industries: hi-tech and manufacturing, banking, financial services and insurance (BFSI), and consumer services.

Zensar entered the AI field in August 2019, developing deep learning-based solutions for industries such as BFSI, retail, and manufacturing. The company utilizes AI in data engineering, analytics, and demand forecasting based on historical sales and real-world data. Additionally, Zensar has innovated by combining AI with Geographic Information Systems (GIS) to identify potential excavation hazards, thereby preventing accidents.

The company’s advanced engineering division, in partnership with Microsoft, has created an AI engineering buddy powered by the Azure OpenAI ecosystem, leveraging GPT models to increase user efficiency by at least 30%. Zensar aims to expand to new geographies and offer innovative solutions using emerging technologies.

3 Birlasoft

Third on our list is Birlasoft, a software development and IT consulting firm that merges domain expertise with enterprise and digital technologies to reimagine business processes. Birlasoft offers services in data analytics, cloud, blockchain, intelligent automation, business intelligence (BI), and enterprise technologies.

Serving various industries including banking, financial services, insurance, energy, utilities, life sciences, and manufacturing, Birlasoft embarked on a collaborative venture with Microsoft Azure OpenAI Service in January 2023. This partnership aims to accelerate value creation and innovation in Generative AI adoption.

On February 5, 2024, Birlasoft launched its Generative AI platform, Cogito, to deliver enterprise solutions that automate processes, generate innovative content, enhance decision-making, and boost overall business performance. Cogito employs AI algorithms, machine learning, and deep learning to optimize areas like supply chain management, customer behavior prediction, and product design.

4 Nucleus Software Exports

Lastly, Nucleus Software Exports, an Indian IT company in the banking and financial services sector, offers IT and consultancy services across various segments of the banking industry. Headquartered in Noida, Nucleus operates in over 50 countries.

Nucleus Software has been discreetly integrating AI to enhance efficiency, security, and customer experience within the financial sector. Their AI-powered smart platform helps build intelligent solutions that boost productivity, improve user experience, and enhance security. By utilizing AI and machine learning algorithms, Nucleus’s solutions can analyze transactional and environmental data in real-time to identify potential fraud, enabling financial institutions to prevent financial losses and enhance customer security.

Additionally, Nucleus’s AI capabilities allow for the analysis of vast amounts of financial data, facilitating informed decisions on risk mitigation, resource allocation, and product development.

In Conclusion, The potential for AI to revolutionize industries is clear, and these smallcap stocks are well-positioned to capitalize on this transformative technology. With consistent revenue and profit growth fueled by AI integration, companies like Newgen Software, Zensar Technologies, Birlasoft, and Nucleus Software Exports demonstrate the significant opportunities AI presents for long-term success. As AI continues to evolve, these companies are poised for explosive growth, making them worthy of attention for investors seeking to ride the wave of AI innovation.