AI is no longer just a story about mega cap giants. While central banks weigh inflation risks, energy prices swing on geopolitics, and global manufacturing and construction cycles adjust, smaller AI focused companies are quietly building tools in machine learning, automation, and data intelligence that could reshape how businesses work. The AI Small Caps screener is designed to filter this crowded space for early stage potential, so you are not guessing in the dark. Ahead, you will see three stocks from this screener that show how different approaches to AI can fit into a forward looking portfolio.

GitLab (GTLB)

Overview: GitLab provides a single DevSecOps platform that helps software teams plan projects, write and review code, run security and compliance checks, and deploy applications, with AI agents and conversational tools layered in to automate much of that work. The company also sells training and professional services to help enterprises roll out and manage these tools across large development teams.

Operations: GitLab generates essentially all of its US$955.2m in revenue from subscriptions sold on both self managed and SaaS models, with the United States contributing US$787.3m, Europe US$145.6m, and Asia Pacific US$22.2m.

Market Cap: US$4.2b

GitLab gives you an AI focused software platform story tied directly to how companies actually build and ship code, with partnerships across Amazon, Google, Anthropic and others feeding into its GitLab Duo Agent Platform. The stock screens as deeply discounted to one valuation estimate while analysts still see revenue growth in the low teens. It remains loss making and carries funding risk due to reliance on external borrowing and weak ROE. Recent insider selling and high CEO pay also keep governance questions on the table. At the same time, a US$400m buyback and expanding AI features across security and compliance indicate that management is leaning into this moment. The gap between the product story and financials is what investors should be watching.

GitLab’s AI engine, big partnerships and US$400m buyback could be masking a far more interesting gap between product story and financial reality, and the 2 key rewards and 3 important warning signs (1 is major!) might explain why that gap matters right now

SES AI (SES)

Overview: SES AI develops AI enhanced lithium metal and lithium ion batteries, as well as complete energy storage systems, for electric vehicles, drones, urban air mobility, robotics, and grid scale storage, selling both battery cells and key materials like electrolytes across the US and Asia Pacific.

Operations: SES AI generates about US$21.9m in revenue from batteries and battery systems, with roughly US$21.2m reported from outside the United States.

Market Cap: US$357.9m

SES AI sits at the intersection of advanced battery hardware and AI driven materials software, with its Molecular Universe platform and recent UZ Energy acquisition aimed at tapping demand for long duration storage, drones, and NDAA compliant defense applications. Revenue guidance of US$30 to US$35m for 2026 and a growing software pipeline indicate a business that is working to shift toward higher margin, recurring streams, even as it remains loss making with a US$73m net loss in 2025, a high P/S ratio, and heavy reliance on external funding. High customer concentration, a class action lawsuit, and execution risk around new facilities mean this is not a low risk story. The combination of cash, buybacks, and capacity expansion may make SES AI of interest to some AI focused investors.

SES AI’s push into long duration storage, drones and defense could be only half the story, and the 1 key reward and 2 important warning signs may reveal how its cash, losses and customer concentration really fit together.

SoundHound AI (SOUN)

Overview: SoundHound AI builds voice AI systems that let cars, call centers, robots, and retailers interact with customers in natural conversation, using its own platforms to handle everything from speech recognition to real time information lookups and agentic AI workflows.

Operations: SoundHound AI reports US$168.92m in revenue from Internet Software & Services, with the United States contributing US$108.39m and the rest coming mainly from Korea and other international markets.

Market Cap: US$3.90b

SoundHound AI operates in the fast growing voice AI and agentic assistant space, supplying the conversational layer for cars, restaurants, retail, telecoms and robotics, with partnerships that range from major automakers to Casey’s 2,600 store rollout and Richtech Robotics. The launch of its OASYS platform and the planned LivePerson acquisition are intended to create an end to end agentic AI suite across digital and physical channels. However, this expansion also involves risks, including continued losses, high cash burn, margin pressure from acquisitions, and stock based compensation that has already led to dilution. For investors using the AI Small Caps screener, the balance between SoundHound’s expanding pipeline and its funding, dilution and profitability challenges is an area that may merit closer attention.

SoundHound’s voice AI push into cars, restaurants and robotics looks set to scale, but the real story may sit in how that growth, funding needs and dilution intersect in the 1 key reward and 4 important warning signs (1 is major!)

The three stocks in this article are only a starting point. The full AI Small Caps screener surfaces 29 more AI focused small caps with equally compelling narratives that you have not seen yet. Use Simply Wall St to identify and analyze the specific catalysts, funding profiles and business models that fit your own thesis so you can focus on the highest conviction AI opportunities.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.