2 Under-the-Radar Wearable AI Stocks Analysts Are Bullish On

Wearable tech has already moved well beyond basic gadgets and into everyday utility. Today’s devices – from smartwatches to AR/VR headsets – aren’t just accessories; they’re becoming extensions of how people live, work, and track their health. Real-time biometric monitoring is feeding doctors continuous data, while augmented reality is starting to function like a personal heads-up display layered onto daily life.

The direction from here is pretty clear. As AI gets integrated into these devices, wearables shift from passive trackers to active assistants – interpreting data, anticipating needs, and responding in real time.

Northland analyst Gus Richard, who ranks in the top 2% of analysts on Wall Street, has been following this trend and outlines the implications.

“We believe wearable AI-enabled technology is in the early stages of mass adoption,” Richard opined. “We estimate that in CY24, the wearable technology market was 500M units, a $140B device market, and a $26B semiconductor opportunity. Watches, earbuds, and fitness trackers account for the bulk of device revenue. All major hyperscale companies are working on wearable technology. Wearable devices will also enable continuous monitoring of a person’s vital signs, reducing health care costs for insurance companies and consumers. Healthcare accounts for 18% of US GDP, or $5T. Globally, healthcare costs roughly $12T. Healthcare is likely to be a significant segment of the wearable market over time.”

Some wearable AI stocks are still flying under the radar, but that likely won’t last. Analysts are starting to warm up to the theme, pointing to opportunities in this space. Using the TipRanks database, we’ve identified two names worth keeping an eye on.

Ambiq Micro (AMBQ)

Founded by University of Michigan researchers in 2010, and now based out of Austin, Texas, Ambiq Micro focuses on developing the lowest-powered semiconductor solutions capable of delivering usable AI functionality. Ambiq works with customers who are creating AI compute at the edges of current technology, where the power consumption challenges become both profound and limiting. Ambiq’s chief technology innovation is the proprietary sub-threshold power-optimized technology, or SPOT, which delivers significantly improved power consumption over more traditional semiconductor architectures.

Ambiq’s product line is based on its ultra-low power Apollo family of MCUs, which are industry-leading, award-winning units capable of fitting into, and powering, the latest generation of small – wearable-scale – smart devices. These include wearable health monitors and hearing aids, as well as smart remotes for a wide range of devices, smart cards for financial transactions, immersive AI devices, AR and VR gaming interfaces, and industrial edge computing systems. To date, the company has sold some 290 million devices.

The range of applications is the key point about this company. By creating AI-capable chips that can fit into the smallest devices, Ambiq has effectively combined AI tech with everything from smart homes to healthcare and medical monitoring. The company works with its customers to create devices that are purpose-built from the initial design stages to enable portable and miniaturized AI tech.

We should note that Ambiq is relatively new to the public markets, and held its IPO less than a year ago. In that offering, which closed on July 31, 2025, the company put 4.6 million shares on the market at $24 each – and raised gross proceeds of approximately $110.4 million. The company today boasts a market capitalization of $746 million.

The company’s last quarterly financial release covered 4Q25, and showed that Ambiq saw sales of $20.7 million for the quarter. That figure was up 2% year-over-year and beat the forecast by $1.75 million. At the Q4 bottom line, the company saw an earnings loss of ($0.32) per share by non-GAAP measures. We should note that the quarterly loss was 6 cents per share better than had been expected.

Assessing this firm’s prospects, Northland’s Gus Richard notes that Ambiq is a leader in wearable tech and is deriving the bulk of its revenue from that segment. “AMBQ has applied proprietary design techniques and post-process trimming to create chips that exhibit reliable, consistent behavior with 2x to 5x lower power consumption than competitive products,” the 5-star analyst said. “Over 80% of AMBQ revenue comes from wearable technology, and 50% of 2025 revenue came from Google and Garmin wearable products. 25% of AMBQ’s sales funnel is now non-wearable products, including medical, industrial, and smart home applications. AMBQ estimates its market opportunity in 2024 was $11B and expects it to grow to $21.1B in 2029, for a 14% CAGR. The Company is investing heavily this year to bring higher-performance products to market, positioning the Company to grow as AI performance requirements increase and use cases expand.”

Looking ahead, Richard rates AMBQ shares as Outperform (i.e., Buy), and sets a $44 price target that implies a one-year upside potential of 25.5%. (To watch Richard’s track record, click here)

This stock has picked up 3 recent analyst reviews, and the 2 to 1 split of Buy versus Hold supports a Moderate Buy consensus rating. The current share price of $35.08 and the average share price target of $42.33 together indicate an upside of 21% in the coming year. (See AMBQ stock forecast)

iRhythm Technologies (IRTC)

The next stock we’ll look at is iRhythm Technologies, a medical tech company that is getting to the heart of the matter – and looking at ways to better monitor and understand the heart, heart health, and heart conditions. The company has developed, and put on the market, the Zio wearable cardiac monitor, a small, lightweight device that can be applied to the patient’s chest to provide at-home ECG monitoring. The company boasts that its product has a 99% patient compliance rate – an important metric, as proper compliance with take-home medical tests is vital to generating usable results and actionable data.

The Zio monitor is designed as a small, wearable patch that is discreet even under a light t-shirt, and is not uncomfortable for the patient to wear. The device’s data is monitored remotely, and patient support can be provided through a smartphone app. Providers can receive reports, review the data collection and data entry, and receive full-time wear analytics – all powered by AI. In an impressive metric, the device’s ‘end of wear’ reports are well received by prescribing doctors – with 99% physician agreement.

The company boasts that, since it introduced its monitor device, it has been used on more than 12 million patients and accumulated more than 2 billion hours of curated heartbeat data. That is an enormous medical database, and provides heart specialists with a large research asset. The size of the database is also useful in training diagnostic AIs, to develop better diagnoses and treatments for cardiac arrhythmias.

Currently, IRTC shares are down by 31.5% so far this year. We should note that the stock has been negatively impacted by lower-than-expected 2026 revenue guidance released in January; by a delay in the release of the Zio Mobile Cardiac Telemetry device until next year; and by an investigative demand received from the Department of Justice. Even after the fall in share value, the company still has a market cap of $4 billion.

At the same time, the company has seen strong sales and earnings. In 4Q25, the top line of $208.9 million was up 27% from the prior year and beat the forecast by $6.3 million. At the bottom line, the non-GAAP EPS of $0.29 was a marked year-over-year improvement from the one-cent figure reported for 4Q24, and was 23 cents per share better than the pre-release estimates had allowed.

This medical device company has caught the attention of Needham analyst David Saxon, who notes the firm’s strengths, including its high potential for further gains.

“iRhythm’s core monitoring business has seen solid momentum with the company’s innovative partner channel driving some of the upside, which we believe offers meaningful upside overtime,” Saxon said. “While iRhythm’s Zio MCT launch has been pushed to early 2027, the company has still seen strong uptake for its current mobile cardiac telemetry (MCT) product Zio AT. International expansion represents a meaningful opportunity however, Zio XT did not get a high medical needs designation in Japan, so management expects more modest revenue contribution. We expect iRhythm to continue to see margin improvement and view its 2027 adjusted EBITDA target of 15% as conservative. We note management believes it could see a 25%+ adjusted EBITDA margin over time (beyond 2027).”

These comments support Saxon’s Buy rating here, and his $254 price target suggests a 109% upside in the coming months. (To watch Saxon’s track record, click here)

The 11 recent analyst reviews here include 10 to Buy and 1 to Hold, for a Strong Buy consensus rating. The stock is priced at $121.46 and its $189.40 average target price implies a gain of 55% by this time next year. (See IRTC stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.