At the time of publishing, RZLV trades at $2.42 per share.
The AI Trade Is Moving Down the Stack
For the last two years, the AI narrative has been dominated by the “pick and shovel” trade. NVIDIA, AMD, and the hyperscalers have captured most of the attention as the companies building the infrastructure that makes AI possible.
That phase is now largely priced in.
As with every major technology cycle, the real money is rarely made building the tools themselves. It is made when those tools are deployed at scale in ways that directly generate revenue for businesses. We are now entering that second phase: The Application Layer.
The question investors should be asking is no longer “who is building the chips?” The real question is: Who is actually using AI to increase sales, reduce friction, and improve margins in real commercial environments?
I have spent the last few weeks digging through the small-cap AI landscape, filtering out the ChatGPT wrappers and buzzword-heavy pitches. One company stood out very quickly.
Rezolve AI (NASDAQ: RZLV).
If you have not looked at RZLV yet, you should. The company recently issued a guidance update that meaningfully changes how this business should be viewed, and the market is only beginning to absorb what it implies.
This Is Not a Chatbot Company
Most AI solutions marketed to retailers fail for a simple reason: Commerce demands precision. Guessing is fine when you are writing an email. It is unacceptable when a customer is trying to buy something.
Rezolve approached this problem from a different angle. Instead of building conversational AI that simply talks, they built agentic AI that acts.
Their flagship platform, the Brain Suite, integrates directly into a retailer’s existing systems. It connects to inventory databases, pricing engines, fulfillment logic, and payment rails. At the core is brainpowa, Rezolve’s proprietary Large Language Model (LLM) trained specifically on commerce data.
When a customer searches for a product, Rezolve’s AI does not guess. It checks inventory, confirms availability, and executes the transaction.
The “Trojan Horse”: Why the Crownpeak Deal Changes Everything
The market initially sold off RZLV on the news of their recent acquisition of Crownpeak, likely spooked by the debt assumption. In my view, the market got this completely wrong.
This wasn’t just a revenue grab; it was a strategic takeover of a massive distribution channel.
Crownpeak is a leading Digital Experience Platform (DXP) used by over 400 global enterprise clients. We are talking about blue-chip names like Sephora, Tommy Hilfiger, Calvin Klein, and Dr. Martens.
Here is why this acquisition is the “Moat”:
- Instant Revenue & Profit: Crownpeak adds approximately $70 million in high-margin revenue and is immediately EBITDA accretive. It fast-tracks Rezolve’s path to profitability.
- The “Active” Upgrade: Most of those 400+ clients currently have “passive” websites, standard catalogs where customers browse and click. Rezolve can now layer its Brain Suite on top of those existing Crownpeak installs.
- The Cross-Sell: Instead of spending years knocking on doors to sell their AI to Sephora or Calvin Klein, Rezolve now owns the platform those brands run on. They can upgrade these brands from passive websites to active, agentic commerce engines that talk, understand, and transact.
They didn’t just buy a software company; they bought a pre-built customer list of the world’s biggest retailers.
The Numbers Changed the Narrative
Earlier this week, Rezolve updated its forward guidance, and it was not incremental.
- 2025 ARR Forecast: Raised to $200 Million+ (doubling their prior estimate).
- 2026 ARR Forecast: Projecting $500 Million+.
- Profitability: They expect to be EBITDA positive (adjusted) starting this month.
In the small-cap software world, investors are usually forced to choose between growth and profitability. Rezolve is showing a credible path to both, and at a scale where guidance does not move unless contracts are already signed and implementations are underway.
This was not promotional optimism. It was a signal.
Distribution Solves Everything
Revenue visibility like this does not appear in a vacuum. Rezolve is not trying to build an enterprise sales force from scratch. Instead, it has embedded itself inside two of the most powerful distribution engines on the planet.
The company has multi-year strategic partnerships with both Microsoft and Google Cloud, including co-sell agreements that place Rezolve’s Brain Suite directly into their enterprise sales motions.
When Microsoft and Google effectively become your channel partners, two things happen: Customer acquisition costs compress dramatically, and credibility becomes immediate. Enterprise buyers do not need to be convinced they are betting on an unproven platform.
This is how small software companies scale quickly without burning cash.
The Valuation Disconnect: Why the Math is Broken
We need to talk about the price, because right now, the market is mispricing this asset.
As of this writing, RZLV is trading around $2.50, giving it a market cap just shy of $1 billion. Let’s run the basic math on that.
Management just confirmed they expect to exit 2025 with $200M+ in Annual Recurring Revenue (ARR). That means the stock is currently trading at roughly 5x forward sales.
For a stagnant legacy software company, 5x is fair. For a high-growth AI infrastructure play growing at triple-digit rates? It is absurdly cheap.
High-growth AI peers often trade at 15x to 20x sales.
- If you apply a modest 10x multiple to their 2025 numbers ($200M ARR), you get a $2 billion market cap. That puts the stock at $5.00, a clean 100% upside from here.
- If you look out to 2026, where they are projecting $500M ARR, and apply that same 10x multiple, you are looking at a $5 billion company. That implies a share price of $12.50 or a 5-bagger from today’s levels.
I am not the only one doing this math. The analyst community has started to wake up, and their targets reflect this massive disconnect.
The consensus price target on the street is currently hovering between $10.00 and $15.00 (with firms like H.C.Wainwright and Maxim Group reiterating Buy ratings). Even the lowest targets on the street are sitting at $7.00, nearly triple the current share price.
When the lowest bear case on the street still offers 180%+ upside, the risk-to-reward ratio is heavily skewed in your favor.
Final Thought
I look for “inflection points”, those moments when a company stops being an interesting technology story and starts behaving like a revenue engine.
Rezolve AI just signaled that transition.
They have proprietary technology purpose-built for commerce, global distribution through Microsoft and Google, and now revenue visibility that forces a reassessment of the stock price.
This is exactly the kind of setup that does not stay overlooked for long.
DISCLOSURE
The author did not receive any compensation for publishing this article. The author holds a position in Rezolve AI and may choose to buy or sell shares of the company at any time without notice. While reasonable efforts have been made to ensure the accuracy and reliability of the information provided, readers are encouraged to conduct their own research and seek independent financial advice before making any investment decisions related to the companies discussed.
