As the world continues its relentless march into the Artificial Intelligence (AI) era, the conversation around this transformative technology remains as vibrant as ever. 

While some AI giants hog the limelight, a whole universe of lesser-known AI companies is quietly making waves in the industry. For investors seeking exposure to this cutting-edge sector, exploring small-cap AI stocks might offer a tantalizing opportunity, albeit with increased risk. 

Here's a fresh look at five under-the-radar AI stocks that could pique the interest of savvy investors with an increased appetite for risk in 2024.

BigBear.ai Holdings (NYSE: BBAI)

BigBear.ai operates at the intersection of AI and decision support, catering to cybersecurity and analytics domains. With a staggering YTD growth of 61%, trading at $3.46 per share, this company displays the potential of AI in driving real-time decision-making capabilities. 

While analysts are bullish on BBAI, with a moderate buy rating based on four ratings, the consensus price target forecasts over 13 downside. As the stock has recently experienced significant volatility and upside, the short interest has grown substantially. As of February 15, almost 20% of the float was sold short, a 6.41% increase over the previous month. 

Guardforce AI (NASDAQ: GFAI)

Guardforce AI, once primarily known for its comprehensive cash solutions and handling services in Thailand, has pivoted to embrace AI and robotics. Leveraging its robust foundation in secure logistics, the company aims to enhance operational efficiency through innovative AI technologies. 

Despite experiencing major volatility, with its stock down over 60% over the previous year, year-to-date, shares are slightly in the green, up 0.6%. Over the last month, the stock increased by almost 30% as the sector gained traction. 

With a market capitalization of just $21 million and an average volume of 637,747 shares, shares of GFAI might continue to experience significant swings and volatility in the months and years ahead. 

SoundHound AI (NASDAQ: SOUN)

SoundHound AI, a pioneer in voice recognition technology, has carved a niche in the AI solutions market for voice-enabled devices and mobile applications. Although the stock boasts an impressive 184% year-to-date surge, the sentiment remains relatively bearish, with 12.93% of the float sold short and recent insider selling being recorded.

Although the company’s revenue, reported on February 29, increased by 80% compared to the same period the year before, earnings slightly missed analysts’ estimates, and revenue fell short of the consensus estimate. 

Analysts remain steadfast on the stock, with a consensus rating of moderate buy and a price target forecasting an almost 4% upside. Nonetheless, it is an impressive price target, considering the stock has already appreciated 255% over the previous month. 

Bullfrog AI (NASDAQ: BFRG)

Bullfrog AI is a digital biopharmaceutical company harnessing AI and ML for medical and healthcare data analysis. With its AI/ML platform, bfLEAP, the company is at the forefront of leveraging technology to revolutionize the healthcare industry. 

With a micro-cap of just $27 million and significant short interest of 11%, Bullfrog AI remains an intriguing speculative play, as the stock has an average volume of just 398,802 and a low float of just 1.43 million shares. Notably, shares of the micro-cap AI company are up over 36% year-to-date and slightly over 25% over the previous year. 

C3.ai (NYSE: AI)

C3.ai, perhaps the most widely known stock on this list, is a company focused on enterprise AI software solutions. With a suite of offerings spanning predictive maintenance, fraud detection, and supply chain optimization, C3.ai caters to various industries. 

Although trading with a significantly larger market cap than the others mentioned above, $4.3 billion, C3.ai warrants attention for its robust growth potential and recent substantial directional move following its earnings report. Over the previous year, the stock is up close to 70% and almost 25% year-to-date, following its most recent earnings release.

C3.ai's latest quarter, ending Jan. 31, saw sales increase by 18% to $78.4 million, marking four consecutive quarters of revenue growth. Government revenue doubled year-over-year. Despite ongoing losses, the company is moving closer to profitability, with a loss of 13 cents per share last quarter. Analysts predict losses will decrease from 69 cents in fiscal 2024 to 34 cents in fiscal 2025.