We recently compiled a list of the 15 Small-Cap Stocks Poised to Outperform in 2025. In this article, we are going to take a look at where Palladyne AI Corp. (NASDAQ:PDYN) stands against the other small-cap stocks.

Fifteen small-cap stocks—predominantly under the technology sector—are taking center stage this year, boasting triple- to quadruple-digit performance in their share prices, thanks to the booming Artificial Intelligence sector.

In this article, we will dive into their performance and evaluate whether these stocks are poised to become the next big winners for your portfolio.

To come up with the 15 hottest small-cap stocks, we only considered companies with more than $3 million in trading volume and less than $2 billion in market capitalization.

A computer screen showcasing Artificial Intelligence and Machine Learning algorithms at work.

Palladyne AI Corp. (NASDAQ:PDYN)

Shares of Palladyne AI Corp. surged by more than 1,286.96 percent to close at $9.57 apiece, with its stellar performance fueled by news on December 30 that its drones successfully tracked moving targets for the first time.

Palladyne’s Pilot AI platform was used on a third-party small drone, identifying and prioritizing targets of interest. Once the drone identified a target, Pilot AI enabled it to continue tracking the target as it moved.

Palladyne co-founder and CTO Dr. Denis Garagic said that he expects the company to finish commercialization of Palladyne Pilot by the end of the first quarter of 2025 and believes small, economical drones will be able to offer the same level of artificial intelligence as bigger, multimillion-dollar drone systems.

Overall PDYN ranks 3rd on our list of the small-cap stocks poised to outperform in 2025. While we acknowledge the potential of PDYN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as PDYN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

 

Disclosure: None. This article is originally published at Insider Monkey.