Beyond the Chip Giants

Most AI trading action gravitates toward the mega-cap chip manufacturers, which makes sense. But here's the thing: there's an entire infrastructure and software development ecosystem that's equally critical to AI's future expansion. For investors willing to handle some volatility and look past the headline names, there's real money to be made in these overlooked corners of the market.

We've identified three companies in the AI infrastructure space that each offer distinct ways to capitalize on AI's continued growth in 2026. They're riskier than the household names, sure, but they're trading at attractive valuations and positioned in some interesting niches.

Airship AI Holdings (AISP)

Airship AI operates in the AI software, hardware, and services space with existing government contracts already in place. The company's leveraging its cloud-based enterprise software ecosystem for video, data, and sensor management. When you need to filter through massive datasets and provide real-time alerts and actionable intelligence, AI-powered software excels, and Airship AI appears to be punching above its weight in this particular niche.

Federal, state, and municipal clients are using the company's proprietary Acropolis video and data platform, and management is predicting 30% year-over-year revenue growth. The current pipeline of new business sits at an estimated $135 million, with the majority coming from government-funded public safety projects.

There's plenty to be optimistic about, but despite reporting net income year-to-date of around $6.5 million, the company faces some significant hurdles. First and foremost, if management doesn't hit that targeted year-over-year revenue increase, investors may start questioning their ability to execute long-term plans.

Right now, they're underperforming by $1.2 million compared to Q3 2024, and gross profit declined 72% on federal budget uncertainty and the November shutdown. While investors watch from the sidelines, the stock has dropped roughly 40% year-to-date, leaving it trading at very attractive multiples compared to peers. Investors willing to bet on AISP and its management team might be pleasantly surprised in 2026, particularly if the company delivers on its Q4 2025 targets.

TSS Inc. (TSSI)

TSS (Total Site Solutions) provides end-to-end data center integration services. Focused on the hardware side of the AI and data center space, the company offers clients a full suite of services including rack and systems integration, hardware procurement, configuration management, and customer service. Unlike most smaller companies in the AI space, TSS is actually profitable and scaling alongside its largest client, a US-based IT OEM.

As of Q3, year-to-date revenues nearly doubled year-over-year, reaching $184.8 million. The company ended the quarter with $75.5 million in cash and equivalents, and $19.1 million in operating cash flow. TSS trades at a discount to most peers, but the risk lies in their limited customer base. That large IT OEM client represents the vast majority of revenues, which creates obvious concentration risk.

For investors hunting for value plays in the AI hardware and infrastructure market who believe the company will successfully diversify its customer mix, TSS offers profitability and scalability that's rare among smaller AI names.

Veritone Inc. (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 carved out a position in the AI data structuring space. With its aiWare platform and latest Veritone Data Refinery suite, the company has structured its software as an "AI-powered operating system" that helps enterprise organizations manage their vast and expanding unstructured datasets.

The financials now reflect that 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 still surpass revenue, representing a 54% operating loss margin and net negative cash flow for Q3 2025.

Management has been aggressively working to clean up the balance sheet. The company has agreed to repay all of the senior secured term loan debt and retire 50% of existing convertible notes, which should shrink annual debt service costs by around $13 million and retire approximately $45 million in convertible debt. This would lift a huge weight off the company's balance sheet, but here's the catch: until the company achieves positive cash flow, it will require additional liquidity sources to sustain operations.

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

The Bottom Line

Airship AI, TSS, and Veritone each sit downstream of the top AI names and mega-cap chip makers driving the AI boom. They each offer a niche product or service in this space. From Airship's government-contracted sensor-intelligence 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 carries a different risk profile.

For investors seeking high risk-reward downstream AI trades at attractive valuations, these three names are worth keeping on your radar.