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Welcome to Episode #479 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Zacks’ small cap analyst, Mark Zinski, joins the podcast for the first time in 2026 with three new small cap AI stocks for your watch list.
None of these three companies have a Zacks Rank, although they do have coverage from Zacks. Please check out the company reports below.
The AI Revolution is Still Ongoing
Despite all the handwringing that the AI Revolution is not panning out, the spending on AI continues at a quick pace. Not only are companies buying chips and other technologies, but they are building out the infrastructure to run the AI. That means data centers.
Data centers need to be built, cooled, and powered. Two of these companies are involved in doing just that.
Companies Making AI Tools and Products
Additionally, over the last year, Mark has been sharing on the podcast small cap companies that are also making AI products in healthcare, transportation, consulting and business services.
This is a hot area with the possibility of a lot of upside. Mark shares one company that is in consulting and AI products that you may want to watch.
Aeries Technology has a company tagline that reads: “Value Creation through AI-Powered Global Transformation.” Aeries Technology is a technology consultant in AI with Global Capability Centers (GCCs).
Aeries Technology is a micro-cap, with a market cap of $17.7 million. It’s also a stock under $1.00. The shares are down 44.3% year-to-date. However, Aeries has announced a $5 million share repurchase program.
Zacks recently initiated coverage on Aeries with an Outperform recommendation. You can read the Research Report here.
Capstone Green Energy’s tagline says “Got Power? We Do – On Your Terms.” This company makes modular on-site power for AI data centers which are low emission, oil free microturbine systems.
Capstone Green Energy has a market cap of $138 million. It has global sales in 88 countries. In the third quarter of 2026, Capstone saw a 33% increase in revenue.
Shares of Capstone Green Energy are up 2.2% year-to-date. It trades under $10.
Zacks has initiated coverage with an Outperform recommendation. You can read the Research Report here.
Should Capstone Green Energy be on your watch list?
Optical Cable’s tagline on its website says, “Connections You Can Count On.” Optical Cable manufactures fiber optic cables which are used in many industries including the military, broadcasting, industrial, mining, oil & gas, and commercial enterprises like data centers.
Optical Cable has a market cap of $64.8 million. It is headquartered in Roanoke, VA and manufactures in the United States. Optical Cable reported a backlog of $10.4 million in the fiscal first quarter of 2026, up from $7.3 million as of Oct 31, 2025.
Optical Cable has been seeing data center market growth. It’s also a stock that trades under $10.
Zacks has recently initiated coverage with an Outperform recommendation. You can read the Research Report here.
Should a fiber optics company like Optical Cable be on your watch list?
What Else Should You Know About Small Cap AI Stocks?
Tune into this week’s podcast to find out.
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3 Small Cap AI Stocks You Should Know
Key Takeaways
Welcome to Episode #479 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Zacks’ small cap analyst, Mark Zinski, joins the podcast for the first time in 2026 with three new small cap AI stocks for your watch list.
None of these three companies have a Zacks Rank, although they do have coverage from Zacks. Please check out the company reports below.
The AI Revolution is Still Ongoing
Despite all the handwringing that the AI Revolution is not panning out, the spending on AI continues at a quick pace. Not only are companies buying chips and other technologies, but they are building out the infrastructure to run the AI. That means data centers.
Data centers need to be built, cooled, and powered. Two of these companies are involved in doing just that.
Companies Making AI Tools and Products
Additionally, over the last year, Mark has been sharing on the podcast small cap companies that are also making AI products in healthcare, transportation, consulting and business services.
This is a hot area with the possibility of a lot of upside. Mark shares one company that is in consulting and AI products that you may want to watch.
3 Small Cap AI Stocks You Should Know
1. Aeries Technology, Inc. (AERT - Free Report)
Aeries Technology has a company tagline that reads: “Value Creation through AI-Powered Global Transformation.” Aeries Technology is a technology consultant in AI with Global Capability Centers (GCCs).
Aeries Technology is a micro-cap, with a market cap of $17.7 million. It’s also a stock under $1.00. The shares are down 44.3% year-to-date. However, Aeries has announced a $5 million share repurchase program.
Zacks recently initiated coverage on Aeries with an Outperform recommendation. You can read the Research Report here.
Should Aeries Technology be on your watch list?
2. Capstone Green Energy Holdings (CGEH - Free Report)
Capstone Green Energy’s tagline says “Got Power? We Do – On Your Terms.” This company makes modular on-site power for AI data centers which are low emission, oil free microturbine systems.
Capstone Green Energy has a market cap of $138 million. It has global sales in 88 countries. In the third quarter of 2026, Capstone saw a 33% increase in revenue.
Shares of Capstone Green Energy are up 2.2% year-to-date. It trades under $10.
Zacks has initiated coverage with an Outperform recommendation. You can read the Research Report here.
Should Capstone Green Energy be on your watch list?
3. Optical Cable Corp. (OCC - Free Report)
Optical Cable’s tagline on its website says, “Connections You Can Count On.” Optical Cable manufactures fiber optic cables which are used in many industries including the military, broadcasting, industrial, mining, oil & gas, and commercial enterprises like data centers.
Optical Cable has a market cap of $64.8 million. It is headquartered in Roanoke, VA and manufactures in the United States. Optical Cable reported a backlog of $10.4 million in the fiscal first quarter of 2026, up from $7.3 million as of Oct 31, 2025.
Optical Cable has been seeing data center market growth. It’s also a stock that trades under $10.
Zacks has recently initiated coverage with an Outperform recommendation. You can read the Research Report here.
Should a fiber optics company like Optical Cable be on your watch list?
What Else Should You Know About Small Cap AI Stocks?
Tune into this week’s podcast to find out.