The AI Investing Pulse

September 25th, 2025

In this Week’s Edition:

1. Analysis - Three small-cap AI stocks outpacing the market this week

2. Stock Ideas - Is BigBear.ai stock the next Palantir?

3. News - Nvidia directors sell millions in stock

4. Startups - How is Google supporting AI startups and transforming fintech

5. Trends - Investor outlook: AI stock rally depends on data centres

6. Other News - If AI can diagnose patients, what are doctors for?

Three Small-Cap AI Stocks Outpacing the Market This Week

The AIIP Index*, our benchmark tracking 173 AI-focused companies across the full AI stack, returned 3.46% this week. But three small-cap names surged far beyond this baseline, capturing investor attention with double-digit gains.

In the fast-moving world of AI investing, it’s often the smaller players that deliver the biggest surprises. While mega-cap names dominate headlines and institutional flows, real pockets of growth frequently emerge further down the market-cap spectrum. These firms often operate in specialised niches, where rapid innovation, contract wins, or index inclusion can spark outsized performance.

This week’s standouts, Veritone, BigBear.ai, and Quantum Computing Inc. illustrate how under $5B companies are finding momentum across very different parts of the AI stack.

Click here to access our Weekly AI Stock Watchlist

1. Veritone Inc. $VERI ( ▼ 5.91% )  

🧠 What the Company Does
Veritone provides AI-powered software solutions to media companies, consumer brands, and public organisations. Its platform helps clients expand content reach, improve recruitment, and monetise archives. A flagship use case is with ESPN, which now leverages Veritone to monetise audio content from NCAA Championship broadcasts.

💡 Why It Stands Out
Shares soared 33% after Veritone struck its ESPN partnership and posted better-than-expected Q2 earnings, buoyed by demand from the U.S. Air Force for AI services. These developments signal growing traction in both commercial media and government markets.

📊 AIIP View

• Fundamental: Total Score of 32 reflects weak financial quality and valuation metrics.

• Momentum: RS Score of 72 indicates moderate relative strength, close to Momentum status, but still short of the ≥80 threshold.

• Technical: VERI is off its high with a bearish daily candle, and a similar bearish pattern is forming on the weekly chart. A key level to watch is whether support holds.

2. BigBear.ai Holdings, Inc. $BBAI ( ▼ 4.01% )  

🧠 What the Company Does
BigBear.ai operates in both the AI Development & Training and Application & Edge layers. It specialises in Decision Intelligence, combining advanced analytics, AI model training, and edge deployment to support complex defence and government missions. Its tools aim to enhance situational awareness and threat detection across land, air, and maritime environments.

💡 Why It Stands Out
The stock rallied 20.9% after BigBear.ai announced its participation in UNITAS 2025, a multinational naval exercise. The company will showcase AI-driven defence applications designed to give U.S. and allied forces sharper operational intelligence. This initiative comes after earlier setbacks, including reduced Army contract volumes that hurt revenue forecasts.

📊 AIIP View

• Fundamental: Total Score of 26 highlights ongoing financial weakness and limited valuation support.

• Momentum: RS Score of 98 confirms strong market performance, earning BigBear.ai a Momentum ranking.

• Technical: BBAI hit double top on Tuesday and is now retracing toward the 5-day EMA, a potential near-term support level to monitor.

3. Quantum Computing Inc. $QUBT ( ▼ 6.43% )  

🧠 What the Company Does
Quantum Computing Inc. focuses on photonic-based hardware for next-generation quantum machines. The company is scaling its Arizona thin-film lithium niobate foundry, aiming to bring quantum computing components into commercial production — a strategic frontier for AI computation.

💡 Why It Stands Out
QUBT gained 16.7% after completing a $200M financing round, boosting cash reserves to $349M. The company also secured inclusion in the Russell 3000 and Russell 2000 indexes, expanding liquidity and institutional visibility — both powerful catalysts for share price momentum.

📊 AIIP View

• Fundamental: Total Score of 26 indicates weak financial foundations, with limited profitability and valuation strength.

• Momentum: RS Score of 100 ranks QUBT at the very top of the AIIP universe, confirming peak market strength.

• Technical: After hitting a high of $24 last week, QUBT retraced and is finding support at the 10-week EMA, a healthy consolidation level if support holds.

🔍 Final Take

Veritone, BigBear.ai, and Quantum Computing each highlight the role of small-cap AI firms in driving sector momentum. Veritone is pushing into media archive monetisation, BigBear.ai is reasserting itself in defence intelligence, and QUBT is scaling quantum hardware innovation.

While all three post weak fundamentals, their momentum and technical strength made them the clear outliers this week compared to the AIIP Index’s 3.46% return. For investors seeking small caps opportunities, these names remain firmly in the spotlight.

Click here to access our Weekly AI Stock Watchlist

_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.}

^{About AIIP - The AIIP Index tracks 173 AI-focused public companies across the full AI stack, serving as our benchmark for sector performance. All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence). AIIP Total Score (0–100) combines metrics for sales and EPS growth, financial quality, and valuation to assess overall business strength. AIIP Relative Strength (RS) Score measures a stock’s price performance relative to the AIIP 173 AI stocks. Ranking Status is based on score combinations: Fundamental: Total Score ≥ 70, RS < 80. Momentum: RS ≥ 80, Total Score < 70. Watchlist: Total Score ≥ 70 and RS ≥ 80}

TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI Stocks Ideas

Is BigBear.AI stock the next Palantir? - Zacks

2 AI stocks poised for explosive growth - AOL

2 best bargain AI stocks - Yahoo Finance

AI Stocks & ETFs News

Nvidia directors sell millions in stock - Seeking Alpha
Nvidia directors Mark A. Stevens and Persis Drell sold millions in shares in mid-September 2025, underscoring notable insider activity amid ongoing company growth.

Dan Ives compares Sam Altman’s World Network to Tesla, Nvidia, Palantir in their early days - Benzinga
Dan Ives sees Sam Altman’s World Network as a foundational AI infrastructure, blending biometric scanning with cryptocurrency, and compares its potential to Tesla and Nvidia in their infancy.

Google turns AI setbacks into dominance in one year - LiveMint
Google rebounded from AI setbacks to achieve 32% cloud revenue growth and a 13% market share by 2025, reinforcing its leadership in AI-powered platforms and search.

Prediction: AI stock set to join Nvidia’s frenzy - Yahoo Finance
A rising AI stock is expected to ride Nvidia’s momentum, reflecting investor enthusiasm and the growing appeal of AI-driven opportunities.

AI Startups

How is Google supporting AI Startups and transforming Fintech - OneSafe
Google Cloud is integrating AI into fintech and cryptocurrency, partnering with Meta to expand capabilities while addressing regulatory challenges like GDPR and consumer protection.

Good Capital raises $30M to back AI startups - YourStory
Good Capital closed its second fund at $30 million to invest in AI-driven startups, fueling growth for technology-first companies.

AI Trends

Investor outlook: AI stock rally depends on data centres - BNN Bloomberg
Analysts see AI stock rallies tied to surging demand for data centres, with Nvidia’s $100 billion OpenAI investment underscoring both potential and valuation concerns.

Future prediction with AI - Blockchain Council
AI is increasingly applied to predictive analytics across sectors, leveraging machine learning and pattern recognition, though ethical and practical challenges remain.

The future of AI: why data quality matters for AGI - CEO World
The development of artificial general intelligence depends on high-quality, ethically sourced data, emphasizing the need for robust systems and global collaboration.

Other

If AI can diagnose patients, what are doctors for? - The New Yorker
As AI advances in diagnosing medical conditions, the article questions the evolving role of human doctors in a healthcare system increasingly shaped by technology.

How Gen AI could transform learning and development - Harvard Business Review
Generative AI can reshape workplace learning by enhancing fluency with AI tools while highlighting the importance of human soft skills for long-term growth.

_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Data sources: S&P Global Market Intelligence}