Why Datavault May be the Penny AI Stock Investors Have Waited For

Key Points

• A unique player in the AI landscape, Datavault combines offerings in agentic AI, data management, and audio technology.
• The company has engaged in rapid expansion via new partnerships and strategic acquisitions.
• Still, it remains a penny stock with small—but growing—revenue and a need to achieve profitability, making it a high-risk, potentially high-reward option.

Datavault AI Inc. NASDAQ: DVLT is a data sciences management firm offering AI agents such as DataScore and DataValue. The firm's small size—it has a market capitalization of just $53 million and trades for well below a dollar per share—means that it has yet to gain widespread attention from investors, including those focused on the AI space in particular.

However, there are reasons that this tiny player in the fast-growing AI space may be propelled into a new echelon of well-known tech firms.

Compelling new partnerships with IBM NYSE: IBM and Burke Products may introduce the company and its products to new sectors and customers, a series of strategic acquisitions may deliver a rapid expansion of the firm's footprint and revenue, and a new development with Datavault's wireless audio software may have benefits outside of the traditional AI space.

Of course, as a largely unproven company that saw short interest increase by more than two-thirds in the last month and which has yet to achieve sustained profitability, Datavault's risk profile may be prohibitive for all but the most adventurous investors.

Those with room to take a chance on an upstart in the AI industry might look to this company over the large field of other AI penny stocks.

Partnerships and Acquisitions Signal Major Growth Efforts

It has been a breakout year for Datavault in terms of two major growth catalysts: partnerships and acquisitions. In March, the company announced its inclusion in IBM's Partner Plus program, enabling Datavault to utilize IBM's Watsonx AI platform to enhance its AI agents and offerings. 

The move could open Datavault's products to industries requiring high levels of security surrounding customer data and privacy. The impacts of this partnership are yet to be fully realized—Datavault only revealed expanded commercialization of its AI agents, DataScore and DataValue, in late July 2025.

They will likely appeal to customers seeking enterprise financial modeling, risk assessment, and pricing assistance.

Also in July, Datavault revealed its partnership with aerospace and defense component manufacturer Burke Products. This strategic alignment, which will see Datavault act as subcontractor for various Burke projects, will take advantage of two key aspects of the AI firm's business: its data management capabilities and acoustic science technologies. 

Already, the companies have announced the expansion of the VerifyU platform to engage in secure, real-time identity verification related to military service claims.

Besides these partnerships, Datavault has recently been on a buying spree, with several high-profile acquisitions. These include audiovisual and IT services firm API Media Innovations, the technology behind inaudible tone mobile quick response codes from Turner Global Media, and event registration and analytics firm CompuSystems. 

Each of these purchases either extends Datavault's preexisting products to meet additional demand or helps the firm to expand outward to new customer bases.

Datavault's Wireless Audio Offerings Take Off

Before its current iteration and name, Datavault's business focus included wireless audio technology, and the company still retains portions of these operations. Its acoustic division recently achieved a significant breakthrough in price, availability, and scale for specialized products that can enhance performance for speaker and subwoofer designers.

A key expansion on Datavault's current focus in the data management and AI landscapes, the WiSA E Endeavour Receiver has ample applications across various sectors.

Looking at Datavault's Financials

In its latest quarter, Datavault noted a 467% year-over-year (YoY) increase in revenue to $1.7 million, thanks to annual recurring revenue achievements with its agentic AI products and via some of its acquisitions. As of mid-year, the firm expects a $25 million run rate by the end of 2025 and annual revenue between $40 million and $50 million in 2026.

These achievements lend credence to the company's two analyst ratings—both Buys, but both initiated prior to the latest earnings report—and the lofty consensus price target of $7 per share, more than 1,450% above current levels.

Certainly, there are many potential roadblocks between here and there, but Datavault's recent moves and growing revenue suggest it is worth monitoring.