Two Overlooked Small Cap AI Stocks Worth Watching

Onto Innovation and AIXXF are two small-cap companies deeply embedded in the AI chip manufacturing supply chain that many investors have yet to discover. Onto Innovation, valued at around $10 billion, specializes in semiconductor inspection machinery serving major DRAM manufacturers like Samsung, SK Hynix, and Micron, with a $240 million purchase agreement already secured. Despite a 67% earnings drop in 2024, Onto Innovation's management projects strong growth ahead, forecasting Q1 2026 revenue of $280 million and improved gross margins of up to 55.6%. CEO Mike Plisinski cites global AI investment driving a semiconductor equipment upcycle as a key growth catalyst.