The Forbes video highlights America’s most successful small-cap companies driving the AI revolution, with TSS Inc. leading due to its explosive growth from partnerships with major tech firms like Dell and Nvidia. It also showcases other notable firms such as Inadata and Amp Prius Technologies, emphasizing the agility and rapid growth potential of small-cap companies in the AI sector beyond the big tech giants.
The video from Forbes highlights some of America’s most successful small-cap companies that are playing a crucial role in powering the AI revolution. A standout example is TSS Inc., a relatively unknown company that has experienced explosive growth due to its partnership with Dell Technologies. In March 2024, Dell launched its AI factory in collaboration with Nvidia, combining Dell’s hardware with Nvidia’s semiconductors and software to create AI-driven products. While Dell’s stock has grown significantly, TSS has been an even bigger winner, with its market capitalization soaring from $10 million in September 2023 to $440 million by November 2024, driven by a multi-year deal to integrate AI-enabled server racks.
TSS specializes in high-margin rack integration, which involves constructing, wiring, and installing cooling and plumbing systems for complex servers. The company’s chairman, Peter Woodward, explains that their OEM customers prefer to continue working with TSS rather than acquiring or doing the work themselves because of the excellent service they receive. TSS plans to expand its capacity to serve other major cloud service providers such as Amazon, Microsoft, and Oracle. This success earned TSS the number one spot on Forbes’s 2025 ranking of America’s most successful small-cap companies, which analyzed around 1,400 firms with market caps between $300 million and $5 billion.
Ken Farcales, portfolio manager of the Oberweis Small Cap Opportunities Fund, believes that small-cap companies are better positioned to benefit from AI due to their agility and ability to quickly implement AI workflows, unlike larger companies burdened by bureaucracy. For investors interested in small-cap stocks linked to AI with more diversified customer bases, Forbes’s list offers several options. One notable company is Inadata, a $2 billion data engineering firm that processes and supplies large volumes of data essential for training AI models. Inadata has doubled its sales year-over-year to $228 million and earned $43 million in profit, with major tech giants among its customers. Its shares have surged 2,000% since early 2023.
The top 20 companies on Forbes’s list also include industrial power providers such as Power Solutions International, Argan, Graham Corp, and Powell Industries, which supply energy infrastructure critical for data centers. Another interesting growth prospect is Amp Prius Technologies, a battery manufacturer focused on drones and robotics. Despite initially losing 93% of its value after going public in 2022, Amp Prius staged a remarkable comeback with a 1,500% gain by early November 2024, earning it the 82nd spot on the list. Similarly, Holdings, a Boston-based drone maker, achieved the 79th spot with a 600% increase in stock price and a market cap of $1.5 billion despite relatively modest sales.
For those interested in a comprehensive overview and the full list of America’s most successful small-cap companies driving the AI revolution, Forbes.com features an in-depth article by Hank Tucker. The video concludes with John Palmer from Forbes thanking viewers for tuning in and encouraging them to explore the detailed coverage online. This spotlight on small-cap companies underscores the significant opportunities and rapid growth potential within the AI sector beyond the well-known tech giants.