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Further Reading from MarketBeat
3 Under-The-Radar Small Caps Making New All-Time HighsWritten by Dan Schmidt. Posted: 5/10/2026. 
Key Points
- Small caps often offer the promise of more upside, but also greater volatility and potential for missteps.
- When performing due diligence on small caps, it's important to consider fundamental and technical factors.
- Three small-cap companies—AXT, NWPX Infrastructure, and Arteris—have each surged to new all-time highs, raising questions about the extent of further upside versus profit-taking.
- Special Report: Elon Musk already made me a “wealthy man”
When stocks hit all-time highs, investors have to decide whether to let their winners ride or take profits. The right choice usually depends on your risk tolerance and investment timeline, but it’s important to evaluate each company individually before making a buy or sell decision. In the case of small-cap stocks, you should also be prepared for a bit of extra volatility if you decide to hold. Small caps are more volatile than larger stocks because these companies often have fluctuating revenue and minimal, or even negative, net income. Most small caps trade on potential, so risk management is crucial when sizing positions and placing trades. While all-time highs often lead to even higher highs, smaller companies are still prone to sharp pullbacks that can create better entry points if the long-term trend remains intact.
When the SpaceX IPO launches, most retail investors will be locked out. The banks, funds, and insiders get in early - while everyone else waits on the sidelines.
But one small infrastructure supplier - a critical piece Musk can't scale the Colossus network without - is still trading well under institutional radar. A new briefing reveals the name and ticker at no cost. Get the SpaceX infrastructure stock name and ticker here
Three small-cap companies recently surged to new all-time highs: AXT Inc. (NASDAQ: AXTI), NWPX Infrastructure (NASDAQ: NWPX), and Ateris Inc. (NASDAQ: AIP). Is it time to take profits, or do these stocks still have room to run? AXT Inc: Feeding the Growing Data Center Power SurgeBased in Fremont, AXT is a semiconductor wafer manufacturer specializing in critical substrates, including indium phosphide (InP). Substrates such as InP are used to connect photodetectors in high-speed optical transceivers, a vital part of AI data center infrastructure. Data center energy usage is expected to be a major tailwind for companies like AXT. The Lawrence Berkeley National Laboratory estimates that total data center power use could reach 580 TWh by 2028, more than triple the amount consumed in 2024. InP is the catalyst driving AXTI shares up by nearly 600% year-to-date (YTD). During the company’s Q1 2026 earnings call on April 30, management reported $26.9 million in revenue, with InP sales accounting for more than half at $13.6 million. Net losses also narrowed to $0.01 per share, and the company now projects Q2 EPS between $0.06 and $0.08. Both earnings per share (EPS) and revenue beat analyst consensus estimates, and the Q2 guidance suggests the company is headed for its first profitable quarter since 2022. In addition, a $100 million backlog provides plenty of revenue visibility in the years ahead. 
AXTI’s 500% surge has pushed the company’s market cap above $7 billion, but the stock now trades at 80 times sales. Investors would be wise to watch for a pullback following April’s $550 million equity raise. Shares stalled near the latest intraday all-time high of $110, allowing the Relative Strength Index (RSI) to move out of overbought territory. However, the Moving Average Convergence Divergence (MACD) indicator formed a bearish crossover, suggesting buying momentum is slowing. The long-term growth story remains intact thanks to a strong backlog and data center tailwinds, but valuation and technical signals are short-term red flags. NWPX Infrastructure: Water Infrastructure Supplier With Multi-Decade TailwindsWe now move outside the tech sector to a company with tailwinds that could extend far beyond the AI and data center boom. According to the Environmental Protection Agency (EPA), U.S. water infrastructure will need more than $625 billion in upgrades over the next two decades. Replacing billions of dollars' worth of piping infrastructure is a long-term tailwind for NWPX Infrastructure, which produces pipes and concrete infrastructure. Business is booming so far this year: the company just reported record quarterly revenue of $138 million and EPS of $1.08, with the latter beating consensus by nearly 40%. The company’s backlog now exceeds $430 million, and its cash position is expected to end 2026 in the range of $50 million to $56 million. 
NWPX is up 75% YTD, but it still looks undervalued relative to the market average. The stock trades at just 22 times forward earnings, carries a Price-to-Sales (P/S) ratio of 2.01, and has virtually no debt on the balance sheet. Shares jumped more than 25% in the week following the Q1 2026 earnings beat on April 30, and technical signals suggest the rally could continue. The stock is now trading well above its 50-day moving average, but there is less concern about a violent pullback given its fundamental strength and relatively low beta of 1.06. Arteris Inc: High-Margin Licensing Model Boosted by AI Training WorkloadsAteris is a $1.37 billion market cap ‘picks and shovels’ play in the semiconductor industry. Instead of building fabs to produce chips, Arteris develops interconnectivity and integration software that connects various CPUs and GPUs. This System-on-a-Chip (SoC) is sold in a traditional software model, with high-margin intellectual property licenses that must be renewed. Gross margins reached 92% in fiscal Q4 2025, and full-year revenue of $70.6 million marked a 22% year-over-year increase. The company also has long-term structural tailwinds from the growing workload of training AI models, as each GPU cluster requires an IP license to move data. 
The stock broke out of a multi-month consolidation pattern following the company’s collaboration announcement with MIPS, gaining more than 60% in just 30 days. The next catalyst is also right around the corner. Fiscal Q1 2026 results are due May 12, and the company will need to keep posting strong bookings to justify its new valuation. |
