TSS Inc. (TSSI)
TSS Inc. is the company that physically assembles AI racks — taking GPUs, memory modules, networking cards, and power systems and integrating them into complete, tested, ready-to-deploy rack systems for data centers.
Modern AI racks run at 120 to 150 kilowatts of power density and require specialized cooling, precise cabling, and burn-in testing. Someone has to bridge the gap between a chip rolling off a production line and it actually running AI workloads inside a data center, and TSS is that bridge.
✔️ Full year 2025 revenue hit $245.7 million, up 66% year over year. Diluted EPS came in at $0.56, up 133%. Net income rose 153%, and cash flow from operations more than doubled to over $30 million.
✔️ The company just brought a 213,000-square-foot purpose-built AI rack integration factory online in Georgetown, Texas, expanding power capacity from 2.7 megawatts to 15 megawatts. Management expects to double rack integration volumes in 2026.
✔️ BlackRock, Millennium Management, Citadel Advisors, and Jane Street all hold positions in this sub-$500 million market cap name. Singler Research just initiated coverage with a buy rating and a $20.50 price target.
Ciena Corporation (CIEN)
Ciena makes the optical networking hardware that moves data between AI data centers at the speeds these workloads demand. Inside and between these facilities, clusters of tens of thousands of GPUs communicate at trillions of bits per second across fiber optic cables. Ciena makes the actual hardware that enables that.
Its flagship WaveLogic 6 pushes 1.6 terabits per second on a single wavelength of fiber — the industry's gold standard — with 50% lower power consumption per bit than the previous generation.
✔️ Q1 fiscal 2026 revenue grew 33% year over year with optical revenue up over 40%. The backlog hit a record $7 billion. Full year guidance came in at $5.9 to $6.3 billion.
✔️ In February 2026, Ciena rejoined the S&P 500 for the first time in 17 years, forcing every passive index fund tracking the index to buy shares immediately. Stifel just raised their price target to $430 after meeting management at the optical fiber communication conference.
✔️ The stock is nearly 92% institutionally owned with Fidelity, BlackRock, and JP Morgan among the largest holders.
Photronics (PLAB)
Photronics occupies one of the most underappreciated chokepoints in the entire AI chip supply chain. The company makes photomasks — the high-precision glass plates that carry circuit blueprints used to etch chip patterns onto silicon wafers. Every advanced chip requires them. A single mask set for a leading-edge chip like the H100 requires 89 individual photomasks, each taking 30 million or more CPU hours to design. NVIDIA's Jensen Huang recently called computational lithography — the process of optimizing photomask designs — "a cornerstone of chip manufacturing."
✔️ High-end IC segment revenue, tied directly to AI accelerators and HBM memory, hit a record 42% of total IC revenue in Q4 fiscal 2025, growing both year over year and sequentially.
✔️ The company posted $849 million in annual revenue, $190 million in net income, nearly $500 million in cash, and zero debt.
✔️ A new Allen, Texas facility is entering equipment installation phase now, with incremental revenue expected to start hitting the books in the second half of fiscal 2026 and ramping into 2027.
Photronics has 590 institutional holders and is 88% institutionally owned. American Century just grew its position by 5%. Royal Bank of Canada raised its stake 30%.
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