Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Thematic (Sector/Industry)

United states Financials / Thematic (Sector/Industry)

<div><ul><li>Water Tower AI Flow Index. We monitor ~400 public companies across tech and AI for performance and AI-related news flow. Last month (ending 2/28), the WTR AI Index was down 0.6% M/M versus the S&amp;P 500 Index (down 0.9%), the Russell 2000 Index (up 0.2%), and the Nasdaq Index (down 2.3%).</li><li>Within the WTR AI Flow Index, declines in Software, Internet &amp; Data Services, and Other Industries were not completely offset by gains in Semiconductor and Other Tech.</li><li>Software (22% of the index) was down 12.0%, while Semiconductor (17% of the index) was up 13.9%, Internet and Data Services (7% of the index) was down 12.8%, Other Tech (24% of the index) was up 13.0%, and Other Industries (30% of the index) was down 5.3%.</li></ul></div>

Water Tower AI Flow Index. We monitor ~400 public companies across tech and AI for performance and AI-related news flow. Last month (ending 2/28), the WTR AI Index was down 0.6% M/M versus the S&amp;P 500 Index (down 0.9%), the Russell 2000 Index (up 0.2%), and the Nasdaq Index (down 2.3%).Within the WTR AI Flow Index, declines in Software, Internet &amp; Data Services, and Other Industries were not completely offset by gains in Semiconductor and Other Tech.Software (22% of the index) was down 12.0%, while Semiconductor (17% of the index) was up 13.9%, Internet and Data Services (7% of the index) was down 12.8%, Other Tech (24% of the index) was up 13.0%, and Other Industries (30% of the index) was down 5.3%.

AI Flow Index : Sailing a Sea of Companies in AI - 2 March 2026