Artificial intelligence is reshaping industries at every level, and while the spotlight often shines on tech giants, a few small-cap players are building serious momentum. These companies may not be household names yet. Still, they’re gaining attention for what they do behind the scenes, whether it’s supplying data infrastructure, powering enterprise applications, or driving defense systems. Here’s a closer look at C3.ai (AI), Innodata (INOD), and BigBear.ai (BBAI).
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C3.ai offers enterprise AI software that enables large organizations to deploy applications at scale. Its C3 Agentic AI Platform and generative AI tools are designed to automate decisions and manage real-time data across various sectors, including energy, finance, and defense. In Q4 FY25, C3.ai reported $108.7 million in revenue, up 26% year-over-year, with 80% coming from subscriptions. The company ended the quarter with $742.7 million in cash. Analysts currently rate the stock as Hold with an average price target of $30.36, reflecting about 20% upside from current levels. Execution and profitability remain key focus areas for investors.
Innodata plays a crucial role in the AI ecosystem by preparing and annotating data for machine learning applications. Major tech and healthcare firms use its services to manage large, domain-specific datasets. In Q1 2025, Innodata saw revenue rise 121% year-over-year and EPS surge 566%. The stock has delivered a 471% gain over the past year and remains one of the top small-cap performers. Analysts are bullish with a Strong Buy consensus and a $69 average price target, implying a 42% upside. As generative AI expands, demand for Innodata’s high-quality data solutions is expected to keep growing.
BigBear.ai focuses on AI-powered analytics and autonomous systems for the defense and intelligence sectors. The company’s decision support platforms and drone technologies are used in mission-critical government operations. While recent revenue growth was modest at 5% year-over-year, BigBear is narrowing its losses and expanding its contract base with agencies like the U.S. Army. Shares have surged recently, trading well above the analysts’ average 12-month price target of $4.83. The stock has Moderate Buy ratings, but current valuation suggests the market may be ahead of fundamentals.
