3 Overlooked AI Stocks To Watch In 2026

Introduction

While the majority of AI trading activity has been focused on mega-cap chip manufacturing scions, an often overlooked infrastructure and software development ecosystem will be key to AI's future expansion. For investors who are willing to tolerate volatility, and look beyond the headline chip stocks, there is money to be made. After some research, we have found three companies in the AI infrastructure space that each offer unique ways to capitalize on the continued expansion of AI in 2026.

Airship AI Holdings (NASDAQ:AISP)

1. Airship AI is an AI software, hardware, and services provider. With existing government contracts in place, the company is currently leveraging its cloud-based enterprise-level software ecosystem for video, data, and sensor management. When it comes to providing real-time alerts and actionable intelligence, AI powered software can be a great resource in filtering out large datasets, and Airship AI seems to be punching above their weight in this niche.

With federal, state, and municipal clients utilizing the company's proprietary Acropolis video and data platform, management is predicting 30% YoY revenue growth. The current pipeline of new business is estimated at $135 million, with the majority being government funded public-safety projects.  

There is a lot to look forward to, but despite reporting net income YTD of around $6.5 million, there are some hurdles the company will need to surpass. Firstly, unless management hits the YoY revenue increase, they have targeted, investors may lose faith in their ability to execute long-term.

As it stands, they are underperforming by $1.2 million compared to Q3 24, and gross profit declined 72% on federal budget uncertainty and November shutdown. While investors wait on the sidelines, the stock has seen a YTD decline of around 40%, leaving the stock trading at very attractive multiples compared to peers. Investors willing to take a chance on AISP, and its management may be pleasantly surprised in 2026, especially if the company delivers on its Q4 2025 targets.

TSS Inc. (NASDAQ:TSSI)

TSS (Total Site Solutions) is an end-to-end data center integration services provider. Focused on the hardware side of the AI and data-center space, the company is able to offer clients a suite of services including; Rack & Systems integration, hardware procurement, configuration management, and superior customer service. Unlike most smaller companies in the AI space, TSS is profitable and scaling alongside its largest client, a US-based IT OEM.

As of Q3, YTD revenues nearly doubled (YoY), reaching $184.8 million, and the company ended the quarter with $75.5 million in cash and equivalents, and $19.1 million in operating cash flow. The company trades at a discount  to most peers, but the risk is in their limited customer base, with the large  IT OEM client representing the vast majority of revenues. For investors looking for value trades in the AI hardware and infrastructure market and are confident that they will diversify their customer mix, TSS is profitable and scalable.

Veritone Inc. (NASDAQ:VERI)

Veritone is a leading enterprise-level AI software, applications, and services provider. Currently serving over 3,000 clients worldwide, and surpassing 430 employees in Q3, Veritone has established itself in the AI data structuring space. With its aiWare platform, and latest Veritone Data Refinery (VDR) suite, the company has structured its software as an "AI-powered operating system" that helps enterprise-level organizations manage their vast (and expanding) unstructured datasets.

The financials now reflect software and related services are the company's primary revenue generator, reaching $29.1 million in Q3, a $7.1 million increase over Q3 2024. Gross margins remain strong, with management reporting cost of revenue at around 30% of sales. Despite this, operating expenses are still surpassing revenue, representing 54% operating loss margin and net negative cash flow for Q3 2025. Management has been aggressively working to clean up the balance sheet, and the company has agreed to repay all of the senior secured term loan debt, and retire 50% of existing convertible notes, which we expect will shrink annual debt service costs by around $13 million, and retire around $45 million in convertible debt. This would be a huge weight off the company's balance sheet, but it's important to note that, until the company is cash flow-positive, it will require additional liquidity sources to sustain operations.

Overall, VERI is a company that offers unique solutions for a large existing customer base, and has a head start on most of its peers. If investors are looking to invest in AI application and data solutions providers, Veritone offers meaningful upside if management executes on cost cutting and revenue generation.

Conclusion

Airship AI, TSS, and Veritone each sit downstream of the top AI names and Mega-Cap chip makers who drive the AI boom and offer a niche product and/or service in this space. From Airship's government contracted sensor-intel software suite, to TSS's profitable Rack integration services, to Veritone's automated workflows, each company is positioned to deliver upside into 2026, and each carriers a different risk profile. For investors looking for high risk/reward downstream AI trades, at attractive valuations, these three names are worth keeping an eye on.

Feature Image: Generated with AI assistance

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.