A Top Small-Cap AI Stock to Buy Now and Into 2026

The global AI infrastructure market is surging toward a $5–8 trillion inflection point, driven by hyperscalers, cloud providers, and enterprises racing to build the next generation of AI-driven systems. According to a report by IDC, global AI infrastructure spending reached $82 billion in Q2 2025 alone, with the market projected to grow at a 17.71% CAGR to hit $197.64 billion by 2030. Gartner further underscores the scale, forecasting worldwide AI spending to reach $1.5 trillion in 2025 and surpass $2 trillion by 2026. This explosive growth is being fueled by AI-specific hardware, cloud infrastructure, and unstructured data management tools, creating a fertile ground for small-cap players with niche expertise.

Among the most compelling opportunities are SkyWater Technology (SKYT), AEHR Test Systems (AEHR), and Photronics (PLAB). These companies are uniquely positioned to capitalize on the AI infrastructure boom, with strong revenue growth, strategic partnerships, and analyst optimism. Let's break down why they represent high-conviction plays for 2026.

SkyWater Technology (SKYT): The Quantum Computing Enabler

SkyWater Technology has emerged as a critical player in the quantum computing space, a sector poised to redefine AI infrastructure in the coming decade. In Q3 2025, the company reported record revenue from quantum computing customers, including four new clients signed since Q2 2025. Its Advanced Technology Services (ATS) segment is on track to exceed 30% growth in quantum-related revenue in 2025.

What sets SkyWater apart is its flexible business model, which allows it to support multiple quantum modalities (e.g., superconducting qubits, spin qubits). This adaptability positions it to benefit from the fragmented and rapidly evolving quantum landscape. Additionally, its Texas operations-now a separate reportable segment-contributed $86.6 million in revenue during Q3 2025, far exceeding expectations.

Analysts are bullish. Five analysts covering the stock have assigned an average price target of $19.40, with some estimates as high as $25. The company's "Strong Buy" consensus rating reflects confidence in its ability to scale quantum computing demand into 2026.

AEHR Test Systems (AEHR): The AI Chip Reliability Specialist

AEHR Test Systems is a critical but often overlooked component of the AI infrastructure value chain. The company provides advanced wafer testing and reliability verification systems, which are essential for ensuring the performance of AI chips. In Q3 2025, AEHR secured follow-on orders for its Sonoma machines from a hyperscaler and is being evaluated for its FOX-XP wafer-testing machine by a leading AI processor supplier according to market analysis.

While AEHR's current forward P/E ratio of 180x appears high, this valuation is justified by its role in a bottleneck area of AI chip production. If the company secures additional orders in 2026, its stock could see significant upside. Analysts have set a price target of $24.00, implying a 30% potential gain from current levels.

Photronics (PLAB): The Undervalued Photomask Manufacturer

Photronics, a photomask manufacturer, is a foundational player in chipmaking. Photomasks are used to transfer circuit patterns onto silicon wafers, and demand for high-end photomasks has surged with the rise of AI chips. In Q3 2025, Photronics reported revenue of $215.8 million, exceeding analyst estimates by 5.5%, and delivered a non-GAAP profit of $0.60 per share-34.8% above consensus.

The company's valuation appears attractive. Its trailing twelve months (TTM) P/E ratio of 14.39 is 22% below its 10-year historical average and significantly lower than peers like Micron Technology and Axcelis Technologies. Analysts have assigned a price target of $43.50, reflecting optimism about its long-term growth in AI-driven photomask demand.

Risks and Considerations

While these stocks offer compelling growth potential, investors should remain mindful of risks. For example, Oracle's $248 billion AI infrastructure gamble-funded by $61.5 billion in bonds-raises concerns about debt sustainability if AI demand slows. Similarly, AEHR's high P/E ratio could be a red flag if its order pipeline fails to materialize.

However, the broader AI infrastructure boom is too robust to ignore. Goldman Sachs estimates that hyperscaler spending in 2026 could exceed 3% of U.S. GDP, and IT budgets are expected to rise by 4–10% as companies prioritize AI readiness. For small-cap players like SKYT, AEHR, and PLAB, this represents a golden opportunity to scale alongside the industry.

Conclusion

The AI infrastructure market is entering a phase of explosive growth, and small-cap players with specialized expertise are best positioned to outperform. SkyWater Technology's quantum computing focus, AEHR's role in AI chip reliability, and Photronics' photomask manufacturing capabilities align perfectly with the industry's tailwinds. With analyst price targets and revenue growth trajectories pointing upward, these stocks offer a compelling mix of undervaluation and high-growth potential for investors with a 2026 horizon.

As the $5–8 trillion AI infrastructure boom accelerates, now is the time to act.