In this article, we will look at the 5 Best Small Cap Data Center Stocks to Buy. Please visit the 8 Best Small Cap Data Center Stocks to Buy if you’d like to see an extended list and methodology behind it.
5. HIVE Digital Technologies Ltd. (NASDAQ:HIVE)
Market Capitalization: $952.48 million
Number of Hedge Fund Holders: 14
HIVE Digital Technologies Ltd. (NASDAQ:HIVE) is one of the best small cap data center stocks to buy. On May 8, HIVE announced that its wholly owned subsidiary, BUZZ High Performance Computing, has contracted a new fiber optic network overbuild and an upgrade of the carrier transport network at its Grand Falls Data Center in New Brunswick.
The company said the estimated capital commitment from HIVE will be approximately $3.1 million for a period of five years. HIVE emphasized that this is a critical infrastructure step to advance the HIVE New Brunswick campus to a Tier III HPC-enabled data center.
Currently, Grand Falls is already energized at 70 MW gross load, HIVE noted, adding that buildings and core electrical infrastructure are in place. It added that BUZZ is converting the site into a 50 MW Tier III+ AI factory designed for enterprise, government, and sovereign AI workloads.
HIVE and BUZZ Executive Chairman Frank Holmes emphasized that AI is the new industrial race. He added:
“Countries that build sovereign AI factories will raise their productivity and security through data sovereignty, ensuring data doesn’t leave the countries’ borders, providing those nations greater data IQ. Countries that do not have their own sovereign AI infrastructure will depend on foreign infrastructure and thus rent intelligence from others.”
Holmes said the fiber overbuild is the superhighway that moves that intelligence to customers. He further said:
“Power plus fibre plus GPUs equals an AI factory. New Brunswick has the chance to become one of Canada’s most important AI infrastructure hubs. We are flourishing in the AI token economy, and our vision is to consume electrons and export tokens. The vision is to turn Canadian power into Canadian AI tokens of intelligence.”
HIVE Digital Technologies Ltd. (NASDAQ:HIVE) builds and operates next-generation Tier-I and Tier-III data centers across Canada, Sweden, and Paraguay, serving both Bitcoin and high-performance computing clients. The company’s twin-turbo engine infrastructure, driven by hashrate services and GPU-accelerated AI computing, delivers scalable, environmentally responsible solutions for the digital economy.
4. Bit Digital (NASDAQ:BTBT)
Market Capitalization: $589.47 million
Number of Hedge Fund Holders: 18
Bit Digital (NASDAQ:BTBT) is one of the best small cap data center stocks to buy. Despite posting lower revenues in the first quarter of the year, Bit Digital remained firm on its Ethereum-focused strategic asset game plan, which is centered on treasury management, staking, and disciplined capital allocation, the company said on May 14.
Bit Digital Chief Executive Officer Sam Tabar expressed optimism for the convergence of Ethereum and AI, emphasizing that Ethereum infrastructure and AI compute infrastructure are components of a single integrated platform aligned with the future of the digital financial system. He added:
“Ethereum infrastructure will become increasingly important to the future digital financial system as stablecoins, tokenization, and on-chain settlement activity continue scaling globally. The future financial system will increasingly revolve around automated, on-chain value transfer between AI agents and applications — Ethereum is particularly well-positioned to serve as the settlement layer for that activity.
Bit Digital sits at both layers of this thesis: providing the compute infrastructure through WhiteFiber and the settlement rails through our Ethereum treasury and staking platform. Demand for compute and power continues exceeding available supply across AI infrastructure markets, and compute itself is scarce and valuable enough to become a new asset class.”
Bit Digital (NASDAQ:BTBT) is a strategic asset company focused on active participation in Ethereum infrastructure and controlling equity exposure to AI/HPC infrastructure through its majority ownership stake in WhiteFiber.
3. Clearfield, Inc. (NASDAQ:CLFD)
Market Capitalization: $591.14 million
Number of Hedge Fund Holders: 18
Clearfield, Inc. (NASDAQ:CLFD) is one of the best small cap data center stocks to buy. On May 12, Clearfield Inc. President and CEO Cheri Beranek said the company expects to begin shipping the newly introduced NOVA platform in the third or fourth quarter of the year.
At the 21st Annual Needham Technology, Media, & Consumer Conference, Beranek said she was surprised by the data center community’s receptiveness to its NOVA product line, as it recognized the company’s expertise in fiber management. She added:
“And so, we really have received a strong open door welcoming from the data center community, and we expect that we’ll start to see the Nova platform business in the third and fourth quarter.”
In January, Clearfield announced the launch of the NOVA Platform, a modular, high-density fiber ecosystem designed to make building and scaling modern networks more intuitive. The company explained that the platform is engineered for a range of environments, such as large hyperscale and co-location data centers, offering space-efficient solutions that can evolve as quickly as their capacity demands.
Clearfield, Inc. (NASDAQ:CLFD) designs, manufactures, and distributes fiber optic management, protection, and delivery solutions.
2. Alpha & Omega Semiconductor Limited (NASDAQ:AOSL)
Market Capitalization: $1.16 billion
Number of Hedge Fund Holders: 19
Alpha & Omega Semiconductor Limited (NASDAQ:AOSL) is one of the best small cap data center stocks to buy. On May 12, the Alpha & Omega announced the completion of its equity transfer agreement for the sale of its interest in its Chongqing, China-based joint venture, the company announced in a filing to the Securities and Exchange Commission (SEC).
Under the transaction, Alpha & Omega Semiconductor Limited and its subsidiary, Alpha & Omega Semiconductor (Shanghai) Ltd., entered into an equity transfer agreement with SIMIC Holdings Co., Ltd. for the sale of the company’s approximately 20.3% of outstanding equity interest in its joint venture of power semiconductor packaging, testing, and 12-inch wafer fabrication facility located in Chongqing, China. Prior to the transaction, the company had a 39.2% of the joint venture.
Alpha & Omega Semiconductor said the sale had a purchase price of $150 million paid in four installments. It announced the completion of the transaction after receiving the final installment on May 11.
In July last year, Alpha & Omega said the transaction would provide it with additional and significant capital for the company to continue investment in technology and R&D projects. Additionally, it will also support efforts for the acquisition of assets complementary to our business operations, which will facilitate and accelerate its initiative in developing innovative and diverse power semiconductor products. It added:
“Importantly, the sale does not impact our ongoing business relationship with CQJV, and we will continue to enjoy access to CQJV’s wafer manufacturing and assembly and test capacity provided under existing agreements, as well as protection for our proprietary technology and intellectual property.”
Alpha & Omega Semiconductor Limited (NASDAQ:AOSL) is a designer, developer, and global supplier of a broad range of discrete power devices, wide bandgap power devices, power management ICs, and modules.
1. Willdan Group, Inc. (NASDAQ:WLDN)
Market Capitalization: $1.39 billion
Number of Hedge Fund Holders: 30
Willdan Group, Inc. (NASDAQ:WLDN) is one of the best small cap data center stocks to buy. According to analyst ratings compiled by CNN, the stock continues to receive a strong Buy rating, with an average price target of $135, representing a 46.55% upside from the current price of $92.12. In the past year, the stock has grown 82.49%, while it posted a 13.63% year-to-date decline.
On May 7, the company reported an 8.3% rise in net revenue to $92.4 million for the first quarter of the year, driven by demand for its energy solutions. The company also reported an 82% jump in its net income to $8.5 million and a 44.4% increase in adjusted diluted EPS of $0.91.
Willdan President and Chief Executive Officer Mike Bieber said first-quarter results reflect strong demand for the company’s energy solutions. He emphasized that the company’s recent acquisition of Burton Energy Group expands its energy offerings. He added:
“Burton is a management consultant and solutions provider that strengthens our national presence, deepens our energy efficiency capabilities and adds energy procurement. Reflecting the strength of our underlying business and outlook, we are raising our 2026 financial targets and long-term margin goal. We now expect 2026 Adjusted EBITDA growth to increase by 26% to 32% year over year.”
Willdan Group, Inc. (NASDAQ:WLDN) is a technical services company focused on energy and infrastructure solutions. Among its offerings are energy planning and analytics, consulting, software, public finance, engineering, and program implementation.
While we acknowledge the potential of WLDN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WLDN and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Digital Infrastructure REITS to Buy According to Analysts and 10 Best American AI Stocks to Buy Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
