Despite oil prices still hovering near $100/bbl, the market appears to be shaking off the Iran conflict and refocusing on the AI rally.

Shares of AI hyperscalers like Google and NVIDIA are up more than 10% over the last week, and the NASDAQ 100 could hit new all-time highs before the end of the month.

But there's no need to fret over missing this rally; there are still plenty of under-the-radar AI plays to consider.

Today, we'll look at five small-cap semiconductor stocks that are soaring to start 2026. Each company has a market capitalization between $300 million and $5 billion, with a minimum Benzinga Edge Momentum Score of 90. 

Here are the five small-cap AI stocks to buy now.

AXT Inc.

Benzinga Edge Momentum Score: 99.99

No, that's not a video game number; AXT Inc. (NASDAQ:AXTI) has the highest possible score on our Benzinga Edge Momentum rankings. And if you look at the stock's performance over the last year, it's not hard to see why. AXTI shares are up more than 300% year-to-date (YTD), and more than 5,700% in the last 12 months. The company makes substrates known as wafers, which are crucial components for semiconductors.

While chip shortages have been a major headline throughout the last year, AXT has also shown a substantial improvement in its fundamentals. Operating margin improved from -34% to -1.4%, and management projects fiscal Q1 2026 revenue of $26 million in the upcoming April 30 release.

AXT shares have been on an incredible run, and the chart shows momentum is still strong. Support at the 50-day moving average remains robust, and the Relative Strength Index (RSI) recently returned to bullish territory. A bullish MACD crossover signals that this stock's brief pullback is over and that investors are once again accumulating.

390% Gains While Others Sat in Cash

Last week, Matt's Inner Circle was alerted to six major trade opportunities—including 390% on TQQQ—while others waited for "clarity."

Volatility is our edge, not our enemy. Get the next alert free before the market moves again.

Ichor Holdings Ltd.

Benzinga Edge Momentum Score: 98.70

Ichor Holdings Ltd. (NASDAQ:ICHR) is a $2 billion "picks and shovels" semiconductor play. The company develops and manufactures fluid delivery systems that are used on semiconductor equipment, with applications in the aerospace and healthcare industries as well. Companies like Applied Materials and Lam Research have fab equipment that requires these subsystems, so an increase in chip demand will also benefit Ichor's bottom line.

The company posted a surprise profit in its Q4 2025 earnings report released in February, with EPS more than 100% above expectations despite a year-over-year (YOY) revenue decline. 

ICHR shares recently broke above $60, marking the first new all-time high since 2021. The stock has enjoyed strong support along the 50-day moving average during this bull run, driving shares up nearly 250% YTD. While the bullish momentum remains strong, investors should heed the RSI’s ascent into Overbought territory, which could signal future profit-taking (and therefore pullbacks).

ChipMOS Technologies Inc.

Benzinga Edge Momentum Score: 95.82

ChipMOS (NASDAQ:IMOS) is a Taiwanese-based manufacturer of semiconductor testing and packaging services with a $1.5 billion market cap and reported annual sales of $762 million. Unlike the meteoric rise of AXTI and ICHR, IMOS shares are "only" up about 38% YTD.

However, this company could have the most upside of any on our list today thanks to its impressive revenue growth and improving technical picture. The company reported 26% year-over-year (YOY) revenue growth in its Q4 2025 results released in February, along with an impressive EPS beat. The next report is scheduled for May 12, and management expects to build on the record revenue from the previous quarter.

The technical picture is also improving, as the stock recently retook the 50-day moving average following a multi-month trek through rangebound trading. A bullish MACD crossover also suggests the uptrend has momentum, and investors may be realizing that ChipMOS has long-term fundamental tailwinds.

Silicon Motion Technologies Corp.

Benzinga Edge Momentum Score: 95.08

Silicon Motion Technologies (NASDAQ:SIMO) is a $4 billion company currently benefiting from the computer memory storage crisis. AI hyperscalers have increased the demand for NAND storage devices to unprecedented levels, and companies like Silicon Motion are reporting record revenue (and EPS) as a result. In Q4 2025, the company notched $1.26 in EPS and $278 million in revenue, both quarterly records that represented YOY growth of more than 40%. The Hong Kong-based firm also trades at just 22 times forward earnings, making its stock much cheaper to own than most competitors in the memory storage industry.

SIMO shares are up more than 200% in the last 12 months, including a 40% YTD gain so far in 2026. The recent pullback also appears to be ending, as the stock is now trading above the 50-day moving average again, with confirmation from the RSI and MACD, which are both back in bullish territory. If this momentum continues, the February all-time high of $143 will likely be surpassed before the end of the month.

Veeco Instruments Inc.

Benzinga Edge Momentum Score: 90.96

One of the themes of this list has been "picks and shovels" companies that are adjacent to the large-cap chip producers, which gives them a chance to grow in multiples. The semiconductor production process is complex and time-consuming, requiring substantial processing, testing, and inspection equipment.

Veeco Instruments (NASDAQ:VECO) is one of these adjacent companies through its semiconductor processing equipment sales, which generate more than $660 million in annual sales. The stock currently trades at 67 times earnings, but its forward P/E is only 23.8, well below the industry average. Citigroup raised its price target on the stock to $40 following the company's earnings release, despite the EPS and revenue miss, signaling confidence in management's ability to profit from this renewed AI drive.

VECO shares are up more than 40% YTD, and the technicals hint at more upside ahead. After hovering near the 50-day moving average since February, the stock has broken out above it, as confirmed by a MACD breakout. The RSI also signals that buyers are back in control, but the break into Overbought territory should give investors concern over a pullback. A slow entry into positions here might be the best way to invest in VECO shares.