Undervalued Small Caps Poised to Ride the AI Boom — 3 Sleeper Picks to Watch Now

June 17, 2025 — SmallCap Network

The artificial intelligence revolution is creating seismic shifts across industries, driving revenue growth for big tech giants and upending traditional workflows at record pace. While household names like Nvidia and Microsoft continue to grab headlines, savvy investors know the real outsized gains often lie in lesser-known small-cap companies quietly positioning themselves in AI’s massive supply chain.

Today, we highlight three under-the-radar small caps that could benefit as AI adoption accelerates in 2025 and beyond.

BrainChip Holdings Ltd. (ASX: BRN | OTC: BCHPY)

What they do: BrainChip develops neuromorphic processing chips — essentially tiny processors that mimic how the human brain works. This low-power AI-on-the-edge solution is designed for smart devices that need to think locally without relying on cloud servers.

Why it’s interesting: As IoT devices and autonomous systems explode, ultra-low-power AI chips will be crucial. BrainChip’s Akida processor could see rising adoption across smart cameras, robotics, and even defense tech.

2025 catalyst: Recent partnerships and a push to expand licensing deals make BrainChip a potential multi-bagger for early investors if commercial traction continues.

BigBear.ai Holdings Inc. (NYSE: BBAI)

What they do: BigBear.ai provides AI-powered data analytics and decision support tools for government and commercial customers. They specialize in sifting massive datasets and turning them into actionable intelligence — a growing need in today’s data-driven landscape.

Why it’s interesting: BBAI’s contracts with U.S. defense and security agencies create a solid revenue foundation, while commercial expansion into logistics and supply chain AI could fuel future growth.

2025 catalyst: After a volatile year, the company has tightened costs and secured new contracts — a turnaround story traders love to spot early.

SoundHound AI Inc. (NASDAQ: SOUN)

What they do: SoundHound specializes in voice AI — think conversational assistants and voice-activated search for cars, appliances, and more. Unlike Big Tech voice solutions, SoundHound’s platform is white-labeled for brands wanting custom voice tech without sharing customer data with Silicon Valley giants.

Why it’s interesting: The push for privacy-friendly, branded AI assistants is growing. Automakers and smart appliance makers are increasingly looking for alternatives to Amazon or Google’s voice ecosystems.

2025 catalyst: SoundHound’s pipeline of partnerships and revenue growth guidance have caught the eye of retail traders and institutional investors alike.

Key Takeaway

The AI gold rush isn’t limited to trillion-dollar companies. Innovative small caps in the AI ecosystem — from edge processors to specialized analytics and conversational AI — could deliver outsized returns for investors willing to take a closer look.

Stay tuned with SmallCap Network for in-depth analysis, watchlists, and real-time updates on how these emerging players perform in 2025’s fast-evolving AI market.