Why TSS (TSSI) Is Gaining Attention Despite a Sharp Q1 Revenue Decline

TSS, Inc. (NASDAQ:TSSI) is one of the best emerging technology stocks to invest in now.

The latest investor-relevant update came on May 7, 2026, when TSS, Inc. (NASDAQ:TSSI) reported first-quarter results that underscored why the company fits the emerging technology screen, despite a messy top-line comparison. Revenue fell 44% year over year to $55.3 million, mainly because procurement activity normalized after a record-heavy prior-year quarter. The more important detail was the mix: systems integration revenue rose 88% year over year, helped by demand for AI-related and high-performance computing infrastructure. The company said systems integration represented 25% of total revenue, compared with 8% in the prior-year period.

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That mix shift made the quarter stronger than the headline revenue decline suggests. Consolidated gross margin improved to 15.9% from 9.3% a year earlier, while adjusted EBITDA rose 1% to $5.3 million. Management also refined its 2026 outlook, saying it now expects full-year adjusted EBITDA toward the high end of its prior $20 million to $22 million range.

TSS, Inc. (NASDAQ:TSSI) provides data center services, including AI and high-performance computing infrastructure integration, deployment, procurement, and related services.

While we acknowledge the risk and potential of TSSI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSSI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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