MarketWatch: Four smaller tech names that are punching 'well above their weight'

MarketWatch has named four "standout gainer" small-cap tech stocks that have outperformed shares of larger peers over the last 12 months. Against the backdrop of booming demand for AI, investors are searching for lesser-known names with significant upside.

MaxLinear

Shares of MaxLinear, which makes chips for data centers, have surged 790% over the last 12 months. Investors were encouraged by the company’s recent pivot toward optical connectivity infrastructure, which is in high demand in AI-focused data centers where high-speed data transmission is critical, MarketWatch wrote. Reporting first-quarter results, MaxLinear said it was entering the “start of a multiyear growth phase” tied to the expansion of optical connectivity in data centers. In January-March, revenue from the company’s infrastructure business jumped 136% year over year, while consolidated revenue rose 43% over the same period to $137.2 million. In the second quarter, the chipmaker guides for a “step function increase in revenues” in its optical data-center business.

The quarterly results exceeded Wall Street expectations, MarketWatch noted. On April 24, the day after the earnings release, MaxLinear stock jumped 76% to $60.30 per share. Needham upgraded the shares from “hold” to “buy,” saying the company “has reached an inflection point.”

Six Wall Street analysts recommend "buy," while four rate it “hold.” Their average target price stands at $55.60 per share, below current levels – one share closed at $99.80 on Friday.

Ichor 

Shares of Ichor Holdings, which manufactures fluid-delivery systems used in semiconductor cooling and production equipment, have climbed 345% over the last 12 months to $74.40 per share. For the first quarter, the company reported financial results that beat Wall Street forecasts. Revenue increased nearly 5% year over year to $256 million, while the gross margin expanded by 0.9 percentage points to 12.6%. The net loss per share over the same period narrowed 46% to $0.07.

Ichor’s second-quarter revenue guidance of $300 million represents “one of the steepest ramps in company history,” Needham analyst Charles Shi wrote in an investment note. Demand for semiconductors is rising rapidly, increasing the need for deposition and etch technologies, he said. These technologies are essential to semiconductor manufacturing: one is used to build a chip’s multilayer structure, while the other is used to precisely remove material to create patterns, 3D structures, and perform cleaning.

Six Wall Street analysts rate the stock "buy" versus a single “hold.” The average target price of $76.70 per share is slightly below current levels.

Ultra Clean 

Shares of Ultra Clean Holdings, a developer of components and subsystems for the semiconductor industry, have gained 332% over the last 12 months to $87.10 per share. In the first quarter, the company reported a 3% year-over-year increase in revenue to $533.7 million.

Ultra Clean’s earnings report exceeded Wall Street expectations and suggested that memory-chip and advanced-chip manufacturers will continue investing in wafer-fab equipment, MarketWatch wrote. The site cited Shi’s view that the company “has ample capacity to supply [$3 billion] of revenue per year,” or even up to $4 billion, as semiconductors become increasingly complex and require more advanced process systems and equipment. By comparison, Ultra Clean generated $2 billion in revenue in 2025.

The company’s stock carries five Wall Street analyst ratings, all “buy.” The average target price stands at $104.40 per share, nearly 20% above the Friday closing price.

Cohu

Shares of Cohu, a supplier of semiconductor testing equipment, have risen 206% over the last 12 months to $49.50 per share. At the end of April, the company reported a 60% year-over-year increase in first-quarter revenue to $125.1 million. The strong results reflect Cohu’s growing exposure to AI and high-performance computing, according to Jefferies analyst Kevin Garrigan. He also believes the company stands to benefit from rising demand for custom chips and central processing units.

The stock currently has seven “buy” ratings from Wall Street analysts versus no “sell” recommendations. The average target price stands at $57.40 per share, implying upside of 16%.

While the stocks highlighted by MarketWatch have gained more than tripled over the last 12 months, the largest U.S. tech names have posted more moderate gains. The Roundhill Magnificent Seven ETF, which tracks a basket of shares of the seven largest U.S. tech companies, has risen 46% over the same period.