IntroductionWhile the majority of AI trading activity has been focused on mega-cap chip manufacturing scions, an often overlooked infrastructure and software development ecosystem will be key to AI's future expansion. For investors who are willing to tolerate volatility, and look beyond the headline chip stocks, there is money to be made. After some research, we have found three companies in the AI infrastructure space that each offer unique ways to capitalize on the continued expansion of AI in 2026.Airshi ...

Airship AI logo displayed on a smartphone screen. Key Points Airship AI insiders bought stock in November, triggering a market bottom. Q3 results were weak due to the government shutdown; the pipeline is robust. Short-sellers pose a risk that may not abate until a potent catalyst is revealed; then a short squeeze is possible. Interested in Airship AI Holdings, Inc.? Here are five stocks we like better. Airship AI’s (NASDAQ: AISP) Q4 stock price correction is not without cause, but it is overdone, s ...

Financial Performance - Q3 2025 net revenues were $1.2 million, with a gross profit of $0.6 million and a gross margin of 51%[4] - Operating loss for the quarter was $2.9 million, primarily due to increased investments in sales and marketing[4] - Net income for Q3 2025 was $6.4 million, or $0.20 per basic share, mainly due to noncash income of $8.8 million[4] - Net revenues for the nine months ended September 30, 2025, were $6,360,807, compared to a net loss of $7,288,520 for the same period in 2024[20] - Gross profit for the nine months ended September 30, 2025, was $4,371,357, while total operating expenses were $10,974,376, resulting in an operating loss of $6,603,019[18] - Basic net income per share for the nine months ended September 30, 2025, was $0.20, while diluted net income per share was $0.15[18] - The total comprehensive income for the nine months ended September 30, 2025, was $6,353,398, compared to a loss of $7,279,182 in 2024[18] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, were $5.8 million, with an additional $9.7 million raised from warrant exercises post-quarter[4] - Cash and cash equivalents at the end of the period were $5,755,661, down from $11,414,830 at the beginning of the period[21] - The company experienced a net cash used in operating activities of $4,502,421 for the nine months ended September 30, 2025[21] - The company reported a decrease in cash and cash equivalents of $5,651,760 for the nine months ended September 30, 2025[21] - The company issued common stock for earnout shares amounting to $5,282,125 during the reporting period[21] Business Development and Opportunities - The validated pipeline at the end of Q3 2025 was approximately $166 million, with expected award timeframes over the next 18-24 months[4] - The company closed approximately $11 million in new opportunities by the end of Q3 2025, most scheduled to ship in Q4 2025 and early 2026[7] - The company plans to release new Outpost AI product offerings and expand custom-trained AI models for emerging edge analytic workflows[8] - Airship AI is focusing on brand awareness and engagement in new verticals through targeted marketing and industry events[8] Strategic Outlook - The company aims to return to positive operational cash flow while navigating uncertainties related to federal funding and government shutdowns[9] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $2,213,182, compared to $2,471,872 for the same period in 2024[18] Government Funding - The Big Beautiful Bill includes over $70 billion in supplemental funding for U.S. Customs and Border Protection, with $6.2 billion earmarked for border security technology[9]

Core Insights - Airship AI Holdings, Inc. reported net revenues of $1.2 million and gross profit of $0.6 million for Q3 2025, with a gross margin of 51% [1][4] - The company faced challenges due to changes in the federal acquisition process and a government shutdown, which slowed contracting activity, particularly within the Department of Homeland Security [4][7] - The total validated pipeline at the end of the quarter was approximately $166 million, indicating potential growth opportunities in the coming months [4][7] Financial Highlights - Net income for Q3 2025 was $6.4 million, or $0.20 per basic share, primarily due to noncash income of $8.8 million [4][18] - Operating loss for the quarter was $2.9 million, attributed to increased investments in sales and marketing [4][9] - Cash and cash equivalents stood at $5.8 million as of September 30, 2025, with an additional $9.7 million raised from warrant exercises post-quarter [4][8] Operational Highlights - The company closed approximately $11 million in new opportunities by the end of Q3 2025, with most scheduled to ship in Q4 2025 and early 2026 [7][9] - Airship AI continued to expand its sales and operational teams to support existing and anticipated awards [4][5] - The company participated in multiple industry tradeshows, enhancing visibility and engagement in the market [8] Market Outlook - The new U.S. Border Security Administration is expected to provide macro tailwinds for 2025 and beyond, with significant funding allocated for border security technology [7] - The legislation includes over $70 billion in supplemental funding for U.S. Customs and Border Protection, with a focus on AI and innovative technologies [7] - The company anticipates that delayed opportunities will move forward as the government enters its new fiscal year, reinforcing a positive medium-term outlook [7][9]

Financial Performance - For the three months ended September 30, 2025, net revenues decreased by $1,691,000 to $1,177,000, a decline of 59.0% compared to $2,868,000 in the same period of 2024 [182]. - Gross profit for the same period was $603,000, down 72.0% from $2,154,000 in Q3 2024 [182]. - Operating loss for the three months ended September 30, 2025, was $2,867,000, an increase of 80.7% compared to a loss of $1,587,000 in Q3 2024 [182]. - Net revenues for the nine months ended September 30, 2025 decreased by $11,017,000 to $8,827,000, a decline of 55.5% compared to $19,844,000 for the same period in 2024 [192]. - Operating loss for the nine months ended September 30, 2025 was $6,603,000, compared to an operating loss of $2,014,000 for the same period in 2024, an increase of $4,589,000 [193]. - Net income for the nine months ended September 30, 2025 was $6,361,000, compared to a net loss of $7,289,000 for the same period in 2024, representing a turnaround of $13,650,000 [201]. - Other income for the nine months ended September 30, 2025 was $12,964,000, compared to other expense of $5,275,000 for the same period in 2024, an increase of $18,239,000 [199]. Expenses - Research and development expenses for the three months ended September 30, 2025, were $753,000, a 29.9% decrease from $1,074,000 in the same period of 2024 [182]. - Research and development expenses for the nine months ended September 30, 2025 decreased by $259,000 to $2,213,000, a decline of 10.5% compared to $2,472,000 for the same period in 2024 [197]. - Selling, general and administrative expenses for the nine months ended September 30, 2025 increased by $69,000 to $8,761,000, a slight increase of 0.8% compared to $8,830,000 for the same period in 2024 [198]. Liabilities and Backlog - The backlog as of October 6, 2025, was approximately $11 million, representing firm fixed price contracts awarded in Q3 2025 [157]. - The total liabilities measured at fair value as of September 30, 2025, were $39,430,170, down from $57,485,426 as of December 31, 2024 [173]. Cash Flow and Liquidity - Net cash used in operating activities for the nine months ended September 30, 2025 was $4,502,000, primarily related to net income of $6,361,000 and noncash items of $11,339,000 [204]. - Liquidity assessment indicates no substantial doubt about the company's ability to continue as a going concern, with an accumulated deficit of $68.6 million as of September 30, 2025 [203]. Real Estate and Leases - The company entered into a lease for 15,567 square feet of office and warehouse space in Redmond, WA, starting October 1, 2023, with monthly payments of $25,000 [208]. - The company entered into an office lease in Mooresville, North Carolina, for 5,240 square feet with a net monthly payment of $9,105, expiring on January 31, 2028, with a 3% increase in payment starting February 1, 2026 [209]. Accounting and Reporting - The consolidated financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that could differ materially from actual results due to economic uncertainties [212]. - The significant accounting policies have not materially changed from those discussed in the Annual Report for the year ended December 31, 2024 [213]. - The company does not have applicable quantitative and qualitative disclosures about market risk as it is classified as a smaller reporting company [214]. Other Financial Metrics - The company reported a gain from the change in fair value of the earnout liability of $3,893,000, down 29.4% from $5,512,000 in the previous year [182]. - The gain from the change in fair value of warrant liability was $5,331,000, an increase of 115.7% compared to $2,471,000 in Q3 2024 [182]. - Cost of net revenues for the nine months ended September 30, 2025 decreased by $6,100,000 to $4,456,000, a reduction of 57.8% compared to $10,556,000 for the same period in 2024 [195]. - There are no off-balance sheet arrangements that are likely to materially affect the company's financial condition, revenue, or expenses [210].

Core Insights - Airship AI Holdings Inc. has secured 16 contracts from various government agencies, including the Department of Justice and the Department of Homeland Security, highlighting its position as a promising AI stock under $20 [1][2]. Group 1: Company Overview - Airship AI Holdings Inc. specializes in AI-driven surveillance and data management platforms for government, defense, and commercial sectors [3]. - The company's technology processes data from multiple sources, such as video cameras and sensors, to identify and extract critical information like license plates and aircraft tail numbers [3]. Group 2: Contract Details - The 16 federal contracts are aimed at utilizing Airship's AI-driven video, sensor, and data management solutions to improve public safety and investigative capabilities [2]. - The contracts reflect a growing demand for AI-driven surveillance solutions, which are seen as essential for enhancing operational efficiency, accuracy, and threat detection in law enforcement [3]. Group 3: Market Context - The increasing focus on national security by the administration is driving the demand for AI technologies, positioning Airship AI as a key player in this sector [3].

Core Points - Airship AI Holdings, Inc. has entered into a definitive agreement for the immediate exercise of certain outstanding warrants to purchase up to 2,162,162 shares of common stock at an exercise price of $4.50 per share [1] - The closing of the offering is expected to occur on or about October 10, 2025, subject to customary closing conditions [1] - Roth Capital Partners is acting as the financial advisor for this transaction [2] Summary of the Transaction - The holders exercising the warrants will receive new warrants to purchase an aggregate of up to 2,702,702 shares of common stock at an exercise price of $6.20 per share, with a term of 5.5 years [3] - The new warrants will be part of a private placement and have not been registered under the Securities Act of 1933 [3] - The Company will file a resale registration statement within 20 days of closing to register the resale of shares underlying the new warrants [3] Company Overview - Airship AI, founded in 2006, is a technology company based in Redmond, Washington, specializing in AI-driven video, sensor, and data management surveillance solutions [5] - The company's products aim to enhance public safety and operational efficiency for both public sector and commercial customers through predictive analysis [5] - Airship AI's product suite includes Outpost AI edge hardware and software, Acropolis enterprise management software, and Command visualization tools [5]

Core Viewpoint - Airship AI Holdings, Inc. (AISP) experienced a significant stock price increase of 19.5% to $6.98, driven by strong trading volume and a 35.8% gain over the past four weeks [1][2]. Company Summary - The stock surge was primarily due to the announcement of $11 million in fixed-price contract awards from the U.S. Department of Justice and the Department of Homeland Security for AI-driven surveillance solutions [2]. - The company is projected to report quarterly earnings of $0.02 per share, reflecting a year-over-year increase of 133.3%, with expected revenues of $8.3 million, up 189.2% from the previous year [2]. - The consensus EPS estimate for Airship AI Holdings has remained unchanged over the last 30 days, indicating a potential lack of momentum in earnings estimate revisions [4]. Industry Context - Airship AI Holdings is part of the Zacks Technology Services industry, which includes other companies like Bitdeer Technologies Group (BTDR), which saw a 7.6% increase in its stock price and a 57.3% return over the past month [4]. - Bitdeer Technologies Group's consensus EPS estimate has also remained unchanged at -$0.22, representing a year-over-year change of 37.1% [5].

Core Insights - Airship AI Holdings, Inc. has been awarded 16 contracts from the Department of Justice and Department of Homeland Security for AI-driven surveillance solutions, highlighting the growing importance of such technologies in public safety and homeland security [1][2] Company Overview - Airship AI, founded in 2006 and headquartered in Redmond, Washington, specializes in AI-driven video, sensor, and data management surveillance solutions aimed at enhancing public safety and operational efficiency [5] Product Capabilities - The company's flagship product, Outpost AI, is an advanced edge-based appliance that utilizes proprietary models to detect user-defined objects and events, allowing for autonomous actions without constant human oversight [3] - Airship AI's solutions aggregate thousands of edge-generated feeds into a unified interface, providing real-time alerts on suspicious activities, thereby maximizing resource utilization for law enforcement agencies [2] Market Position and Future Opportunities - The recent contract awards not only reinforce existing capabilities but also open avenues for new requirements, indicating a strong market position and potential for future growth [4] - The company is actively pursuing additional opportunities that have emerged in the current fiscal quarter, which could further expand its footprint in federal law enforcement operations [4]

Core Viewpoint - The small-cap tech markets are experiencing significant growth potential driven by interest rate outlook and business demand trends, with specific stocks poised for substantial price increases [1]. Group 1: Airship AI - Airship AI's stock has shown volatility since its late 2023 IPO, with a current price of $5.19 and a price target of $6.00, indicating potential for growth [3][4]. - The company operates a cloud-native platform that leverages dark data for critical information extraction, targeting institutions and law enforcement [3]. - Recent market activity includes purchases by major institutions like Bank of America and JPMorgan Chase, despite only 5% institutional ownership [4]. - A 20% share price increase in early September confirmed support at a critical trading range, suggesting a potential rise above resistance at $6.60, which represents over 100% upside from this target [5][6]. Group 2: Amprius Technologies - Amprius Technologies is currently priced at $8.36 with a price target of $11.71, driven by ramping capacity and demand for its next-gen silicon-anode lithium-ion batteries [8]. - The company is positioned for hypergrowth, particularly in aerospace and drones, while also diversifying into new markets [9]. - Analysts show a bullish sentiment with a unanimous Buy rating from nine analysts and a price target suggesting a 45% upside, potentially reaching the $18 range [10]. - The stock increased by 15% in early September, indicating strong market support and a bullish triangle pattern, with expectations to rise above $10.50 [11]. Group 3: SoundHound AI - SoundHound AI's stock is currently at $14.95 with a price target of $14.36, reflecting accelerating hyper-growth driven by demand for voice-to-meaning technology [13]. - The company is expanding its client base and deals, indicating strong growth potential in 2025 [13]. - Analysts have a Moderate Buy rating for SoundHound, with increasing coverage and a positive revision trend leading to higher price targets [14]. - The stock has shown strong support since April, with rising volume and positive indicators suggesting further upward movement [15].