TSS, Inc. (NASDAQ:TSSI) is one of the best-performing small-cap tech stocks in the past three years.
On December 1, Lucid Capital Markets initiated coverage of TSS with a Buy rating and a $15 price target, implying roughly 56% upside from the $9.63 price cited at the time of the report.
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Lucid’s pitch is simple: TSS is leveraged to the AI data-center buildout as a systems integrator that procures hardware, builds server racks, and maintains networks for enterprise customers, benefiting from a tight commercial relationship with Dell, a major supplier of AI-enabled servers. The firm expects headline revenue to decline by ~24% in 2026 as the company laps unusually large, low-margin procurement volumes from early 2025. Still, it argues growth should continue in the higher-margin systems integration and facilities management segments.
Valuation is the tension point. Lucid notes TSS trades at less than 1x on EV/Sales with limited institutional ownership, suggesting under-recognition.
TSS, Inc. provides data-center services and AI/HPC infrastructure integration: procurement, rack buildout, and lifecycle services for enterprise and technology customers, with operations closely tied to Dell’s server ecosystem.
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