Are These 3 Under-the-Radar AI Stocks the Next Big Growth Stories?

• StockStory Top Pick NVDA +1.37%
• RDVT -1.12% AEYE +1.07% INTC +2.74% WYFI +11.22%

Key Points

• The AI bubble has yet to burst, although recent declines by major companies such as NVIDIA may mean there's an opportunity for risk-tolerant investors to buy into the industry.

• Distinguishing among the smaller AI firms can be challenging, and each carries heightened risk due to its size and the turbulence facing the space.

• Still, WhiteFiber, AudioEye, and Red Violet stand out for their growth potential, despite these risks.

• Interested in WhiteFiber, Inc.? Here are five stocks we like better.

The close of 2025 has been somewhat of a trying time for AI bulls, as voices calling the artificial intelligence boom a bubble are growing louder.

NVIDIA Corp. (NASDAQ: NVDA), the world's largest company and a major bellwether for the AI industry more broadly, has experienced a share decline of nearly 14% since late October. While some risk-averse investors will take the first sign of a pullback as confirmation that AI is too dangerous a space, others might see an opportunity to buy in.

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Outside of firms like NVIDIA—major players in the manufacturing of hardware related to AI, providers of infrastructure, data center operators, and others—the field of off-the-beaten-path AI firms is growing rapidly. Of course, these latter companies are riskier, both due to their small size (many are small- or micro-caps) and their lack of a proven track record in a rapidly shifting space. Still, the three companies below may appeal to risk-tolerant investors, who see an opportunity to capitalize on volatility in the AI world.

WhiteFiber: Expands Data Center Footprint While Managing Losses

WhiteFiber Inc. (NASDAQ: WYFI) operates high-performance computing data center infrastructure and makes graphics processing units (GPUs).

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The company's Montreal data center is projected to see a full-quarter revenue run rate of roughly $1 million per month, which could be transformational for the young firm.

Meanwhile, WhiteFiber's next data center, located in North Carolina as NC-1, is on track for deployment in the first quarter of 2026 and has already received numerous proposals from strong counterparties.

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With third-quarter revenue topping $20 million—an increase of almost two-thirds year-over-year (YOY)—and gross margin of 63%, there is much to be excited about with WhiteFiber. However, investors should note that revenue didn't climb by quite as much as analysts had expected, and, perhaps more concerningly, booming general and administrative expenses contributed to operating losses that widened to $14.5 million.

Regardless, Wall Street is optimistic about this company, with two new Outperform ratings in the last month, meaning that eight out of 10 analysts call WYFI a Buy. With an upside potential of 108%, the growth path is clear, albeit risky.

AudioEye: Grows Recurring Revenue but Faces Customer Volatility

Unique in the AI space, AudioEye Inc. (NASDAQ: AEYE) leverages this technology to deliver digital accessibility services and ensure compliance with the Americans with Disabilities Act and similar regulations.

With business expanding in both the United States and the European Union, AudioEye reported annual recurring revenue (ARR) of nearly $39 million for the latest quarter.

Overall, quarterly revenue was pretty strong at $10.2 million, and adjusted EBITDA reached a record of $2.5 million.

Still, AudioEye is a small company—its market capitalization is just over $143 million—and a partner renegotiation in the last quarter resulted in a 3,000 customer count decrease to around 123,000, demonstrating just how susceptible the firm is to client change. On the other hand, AudioEye is rapidly developing its platform and already has a significant advantage over its peers in the niche AI accessibility space.

With limited analyst attention (there are only four recent ratings, though three are Buy recommendations), AudioEye could be an underappreciated AI growth prospect. It does enjoy a consensus price target of $22, more than 90% above its current price.

Red Violet: Delivers Record Revenue and Strong Client Retention

Red Violet Inc. (NASDAQ: RDVT) uses AI to enhance its financial crime mitigation tools.

With record revenue of more than $23 million in the third quarter, an adjusted gross margin of 84%, a solid EPS beat, and its best-ever free cash flow, the company has plenty of forward momentum.

Additionally, it is attracting new customers from both the enterprise and public sectors, and gross retention is strong, at approximately 96%.

With much of its business tied to the real estate market, Red Violet is exposed to volatility in this sector. The end of the year may also be a soft season for that reason as well. Still, all three analysts reviewing RDVT shares recommend a Buy, and the consensus estimate suggests the company's stock could rise by 16%.

The article "Are These 3 Under-the-Radar AI Stocks the Next Big Growth Stories?" was originally published by MarketBeat.