The artificial intelligence (AI) sector continues to attract investor attention, particularly toward small-cap companies. This article examines two companies that may present interesting opportunities in the market.
Serve Robotics: The Future of Delivery
Serve Robotics is gaining attention in the robotic delivery segment through partnerships with giants like Uber. In April 2024, the company expanded its business into Los Angeles and Miami, launching delivery robots in the Dallas-Fort Worth area. By the end of 2025, it plans to deploy 2,000 delivery robots. While the company has yet to achieve profitability, its Q1 2025 revenue grew by 150% compared to the previous quarter.
AppLovin: Growth through In-App Advertising
AppLovin provides companies with tools to monetize apps through embedded advertising. In Q1 2025, its ad revenue increased by 71% to $1.16 billion. Notably, AppLovin is selling its gaming division to Tripledot Studios for $400 million but will retain a 20% stake. The company also showcased significant net income growth of 144%, reaching $576.4 million.
Conclusion: The Potential of Small-Cap AI Stocks
Both Serve Robotics and AppLovin exhibit considerable growth potential in the AI space. Investors should monitor their developments, especially given the increasing interest in AI-related technologies.
Investing in small-cap stocks in the AI sector may represent a promising strategy. By analyzing the growth and innovations in companies like Serve Robotics and AppLovin, investors can find interesting opportunities in the market.
