Just caught this podcast episode about finding AI stocks under $5 and honestly, the valuations on some of these smaller plays are wild compared to the mega-cap AI stuff everyone's chasing.

So they're looking at two companies here. FiscalNote (NOTE) does policy intelligence software - helps companies navigate regulatory stuff. Market cap's only $168M and it's trading at like 3x sales, which is cheap for anything AI-related these days. Most of the big players are at 10x or way more.

Then there's iCAD (ICAD), even smaller at $52M market cap. They've got this AI-powered breast cancer detection tool that's already in 50+ countries. Their Q3 numbers showed 4% revenue growth to $4.2M and 86% gross margins. Also trading at 2.7x sales.

The interesting question here is whether AI software tools actually outperform the infrastructure plays like chips and data centers. These are definitely not the household names, but if you're looking at artificial intelligence stocks under $5 with actual revenue and margins, they're worth digging into. Not saying jump in, but worth adding to your watch list if you're exploring smaller AI bets beyond the obvious picks.