3 Innovative Small-Cap Tech Stocks: Time to Buy, Sell, or Hold?

Small-Cap Tech Stocks Overview - Innovative small-cap tech stocks like Cerence Inc (NASDAQ: CRNC), Rigetti Computing (NASDAQ: RGTI), and Airship AI (NASDAQ: AISP) are gaining traction in both business and stock prices, indicating potential for significant gains in 2025 [1] - These stocks are benefiting from short-covering rallies, but the sustainability of their market traction and upward trends in 2025 remains uncertain [1] Rigetti Computing - Rigetti Computing builds quantum computers and offers quantum-computing-as-a-service, benefiting from a short squeeze and increased trading volume [2] - The company's stock rally is driven by advancements in quantum computing technology, its industry position, and improved investor confidence, particularly due to Google's Willow chip advancements [2] - Catalysts for 2025 include the anticipated launches of 36- and 100-qubit systems, which could open an $8 billion addressable market [3] - Revenue is expected to grow exponentially from$15 million, but the company may need to raise more cash before achieving profitability, with shareholder value diluted by over 30% in the first nine months of F2024 [3] Cerence Inc - Cerence Inc provides AI assistants for mobility, transportation, and autonomous driving, focusing on voice/audio assistants [4] - The company recently expanded its partnership with NVIDIA, which helps scale its business, improve performance, and advance its technology [4] - Despite weak 2025 guidance, the company benefits from AI growth in the transportation industry, with assistants embedded in both legacy ICE and newer EVs [4] - A short squeeze, fueled by 18% short interest, led to a 700% spike in share price, with the stock expected to consolidate and trend higher in 2025 [5] Airship AI - Airship AI uses AI and machine learning to power its video surveillance platform, enabling real-time monitoring and threat response [7] - The company serves government agencies and Fortune 500 companies, with revenue expected to grow by 50% in F2025 and profitability anticipated next year [8] - Analysts rate the stock as a Buy, viewing it as a deep value with an 80% upside potential from current levels [8] - Despite its growth outlook, Airship AI is not among the top five stocks recommended by top-rated analysts [9]