In a world where technology advances at a dizzying pace and industries continually reinvent themselves, allocating between 10 and 15% of the portfolio to emerging companies with disruptive potential can become a key strategic issue. These companies, still in the recognition phase, are laying the foundations of what could be the giants of tomorrow. Although this type of investment carries significant risks, long-term return opportunities are hard to ignorecomparable to having invested in giants like Apple or Amazon in their early days.
The key is to identify not only companies aligned with major global trends, but also those with the power to transform industries or even create new markets. This time I will focus on small cap companies (small capitals) which integrate the artificial intelligence in the DNA of his company. These emerging companies are positioning themselves at the forefront of key sectors and, although they do not yet enjoy mass recognition, they could become fundamental players in the next 20 or 25 years.
Although these investments are often surrounded by uncertainty, Those who dare to bet on its potential early on could see extraordinary rewards. In this article, we’ll explore five emerging companies that could reshape critical industries over the next two decades, providing unique opportunities for forward-thinking investors.
Some of these companies are already part of the long-term portfolio I’m building for my 19-year-old twins. As I usually say, In 25 years, when they see the real impact of these decisions, my children will remember: for better or for worse, from his father.
SoundHound (SOUN)
SoundHound specializes in voice and sound recognition technologies, focused on conversational artificial intelligence. Its platform allows developers to integrate voice control capabilities into applications and devices, opening up new possibilities for human-machine interaction. This company has the potential to become the leader in the next generation of user interfaces, making voice a key tool in industries such as automotive, commerce and smart devices.
I wanted to talk about this company first since its pricing curve is one of the most interesting. I like the wide gap that opened up in mid-February and also that since then, the stock has consolidated positions, which I see as a simple phase of digestion of this sharp increase, after which it is very likely that the price will start to rise again. As it has been consolidating for months now, I understand that this bullish recovery is getting closer and we will find the first clues that would point in this direction if it beats the $5.15. Buy in this case and you can even place a stop on the 4.30 and 3.80 dollars. The goal is to look for upside potential which could be huge, but if they want to know the levels it had been trading at previously, tell them that in 2021 it was trading at $18 and the highs of this year were $10.
Innodata (INOD)
Innodata provides data-driven solutions and digital transformation services, including artificial intelligence and machine learning, to help businesses manage and maximize the value of their data. Given the growing importance of data across all industries, Innodata is well-positioned to help businesses navigate a future where information management will be a critical success factor.
In the case of Innodata, we find a company whose price is absolutely rising, which is the most bullish technical situation in existence. The bullish potential detected after the break of the resistance zone of the 10 dollarswhich was the ceiling of the wide lateral range which had limited the evolution of the title over the last twenty years, is enormous since it proposes increases towards the 135 dollars (arises from the projection of the width on this side), but to buy, I would be inclined to wait to see if the stock returns to the zone of 10 dollars. Keep an eye on the value and if it gets there, that’s when you can shoot. Otherwise, we wish you a good trip.
Lemonade (LMND)
Lemonade is an insurer that uses artificial intelligence and big data to transform the insurance experience. From fast quotes to automated claims resolution, the company is redefining the way we interact with insurance. Lemonade represents a clear disruption in a traditionally slow-moving industry, portending a future where digitalization and automation could make insurance more accessible and efficient.
Lemonade is another one of my favorite stocks from a technical standpoint, as the stock appears to be laying the foundation for a long-term bottom at the lows set in 2023 in the $10.30something which would be confirmed as soon as it exceeded the $24.70which is the resistance that stopped the rises of last year and the rise of 2024. In this case, I am not in favor of waiting for the confirmation of this uptrend and you could already put your feet in the current area, to increase if beat those $24.70. In the coming years, we would hope for at least a return to the 2021 maximum zone around $180-200.
Verint Systems (VRNT)
Verint Systems is dedicated to artificial intelligence and data analytics to improve customer experience and business security. The company helps organizations understand and predict customer behavior by collecting and analyzing real-time data. As data analytics becomes the cornerstone of business decisions, Verint plays an important role in transforming customer service and security operations.
From a technical point of view, it is striking that in recent months the price has retraced the 78.60% Fibonacci of its entire last and powerful rise, which took it from $18.40 to $38.20after reaching the $22.80. In this environment it doesn’t seem wrong to me to put one foot and the other would wait until I reach the 6:40 p.m. If it doesn’t hit these 2023 lows, where I consider the stock could have hit a long-term bottom, it won’t be bad news.
Mitek Systems (MITK)
Mitek specializes in digital identity verification and mobile document capture. Its solutions enable businesses to validate user identities remotely and securely, a crucial element of the digital economy. With the increasing digitalization of financial and business services, Mitek is positioned to play a vital role in fraud prevention and digital identity management in the future.
Finally, I want to tell you about this company because technically it is still far from what would be an optimal purchasing area with a long-term orientation. I would only be in favor of buying shares of this company if it hits the 2020 low zone around $5.35. There I will place purchase orders and if you do not succeed, then I wish you have a good trip.
