Five Small and Mid-Cap AI Stocks Surge Over 100% in First Half of 2026

Zacks Investment Research··Read original
2▲5 ▼0Impact / 5
Summary · why it matters

Small and mid-cap AI stocks have significantly outperformed large caps in the first half of 2026, with the Russell 2000 and S&P 600 up 20% and 21% respectively, compared to an 8.5% gain for the S&P 500. Five stocks that have more than doubled this year and hold favorable Zacks Ranks are Bandwidth, Arteris, Penguin Solutions, A10 Networks, and Veeco Instruments. Bandwidth, a Zacks Rank #1, operates a conversational AI platform and expects 18.3% revenue growth this year. Arteris, a Zacks Rank #2, provides system IP for AI and automotive chips and projects 34.4% revenue growth. Penguin Solutions, also a Zacks Rank #1, offers AI infrastructure solutions and anticipates 25% revenue growth next year. A10 Networks, a Zacks Rank #2, delivers application networking for AI data centers and expects 11.9% revenue growth. Veeco Instruments, a Zacks Rank #1, makes thin film process equipment for AI hardware and forecasts 20.2% revenue growth.

Impact on assets 5

Semiconductors▲ · 2 stocks
Arteris Inc
AIP
▲ PositiveDemandrelevance

Arteris projects 34.4% revenue growth driven by AI and automotive chip demand.

Veeco Instruments Inc
VECO
▲ PositiveDemandrelevance

Veeco Instruments forecasts 20.2% revenue growth from thin film process equipment for AI hardware.

Cybersecurity & Digital Trust▲ · 1 stocks
A10 Network
ATEN
▲ PositiveDemandrelevance

A10 Networks expects 11.9% revenue growth from AI data center networking demand.

Cloud & Digital Infrastructure▲ · 1 stocks
Bandwidth Inc
BAND
▲ PositiveDemandrelevance

Bandwidth expects 18.3% revenue growth from its conversational AI platform.

Artificial Intelligence▲ · 1 stocks
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