Small AI Companies Selling Parts to Data Centers Did Far Better Than Those Selling AI
Since OpenAI released ChatGPT on November 30, 2022, small firms selling parts to AI data centers have done far better than those that sold AI or jumped into it. From its first AI news, the typical parts maker's stock rose 77%, while the typical older AI firm fell 81% and the typical newcomer from other trades fell 82%. The parts makers' peers fell 27% over the same days.
The short answer. Small firms that sold parts to AI data centers have done well since ChatGPT came out. Most older AI firms, the ones that sold AI before ChatGPT came out, fell far more than firms like them. So did most newcomers from other work. The rest landed in between. Is AI a bubble? Among small firms, the stock gains from their first AI news showed up at the parts makers for AI data centers. They did not show up at every firm with AI in its name. We sorted 82 small firms by what they sold and tracked the 81 with prices to October 30, 2026.
Middle firm's stock move from its first AI news
On this page
- How small AI stocks have done since ChatGPT came out
- Small firms that sold parts to AI data centers
- Bitcoin miners that turned to AI
- Firms that jumped into AI from other trades
- Firms that brought chip or data skills to AI
- Older AI firms fell too
- What this means for AI news from small firms
- Is this an AI bubble?
- Frequently asked questions
How small AI stocks have done since ChatGPT came out
From each firm's first AI news, the firms that sold parts to AI data centers did best. Older AI firms and newcomers from other trades did worst. From the day ChatGPT came out, though, bitcoin miners rose the most.
A firm's first AI news is its first press release headline after ChatGPT came out that names AI or a like word. GPUs, the chips that run AI, count too. From there, the 13 parts makers rose 77% at the median, which is the middle firm of the group.
Their peers, small firms of the same size and recent track record, fell 27% over the same days.
The 22 firms that already sold AI before ChatGPT fell 81%. The 26 that jumped into AI from other trades fell 82%.
From the day ChatGPT came out, the newcomers are down 96%. No group fell further.
| Firms with prices | Middle firm | Peers | Ahead of peers | |
|---|---|---|---|---|
| Sold parts to AI data centers | 13 | +77% | -27% | 11 of 13 |
| Came with chip, hardware or data skills | 7 | +13% | -45% | 4 of 7 |
| Bitcoin miners with data centers | 13 | -61% | -32% | 6 of 13 |
| New to AI from other trades | 26 | -82% | -26% | 5 of 26 |
| AI firms from before ChatGPT | 22 | -81% | -53% | 7 of 22 |
An average can hide how most firms did. Take the 46 firms with prices that turned to AI from other work: the newcomers, the miners and the firms with skills. On average they rose 22%, but the middle firm fell 68%.
| Group | Firms with prices | Middle firm, from first AI news | Peers, same days | Middle firm, since ChatGPT |
|---|---|---|---|---|
| Sold parts to AI data centers | 13 | +76.6% | -26.9% | +98.0% |
| Came with chip, hardware or data skills | 7 | +12.8% | -45.1% | +64.3% |
| Bitcoin miners with data centers | 13 | -60.7% | -32.4% | +240.9% |
| New to AI from other trades | 26 | -82.3% | -26.4% | -96.0% |
| AI firms from before ChatGPT | 22 | -80.7% | -53.0% | -85.3% |
| All other small firms | 1,939 | n/a | n/a | -11.3% |
Source: StockTitan press releases and daily closing prices adjusted for stock splits, November 30, 2022 to October 30, 2026. Each figure is the middle firm of its group.
Small firms that sold parts to AI data centers
Small firms that already made parts for AI data centers saw their stock rise. Their sales and their share counts grew at about the same pace. Ten of the 13 rose from their first AI news.
These firms make the things AI data centers need. Some make parts that turn data into light to link AI servers. Others make cooling systems, network switches, power chips, or machines that test chips.
In the latest year, their typical sales were 1.39 times those of the year ending between mid-2022 and mid-2023. Their share count grew to 1.32 times. So sales and shares grew at about the same pace, while the stock rose.
The gain does not rest on one stock. Leave out the biggest winner, and the middle firm still rose 73%.
Applied Optoelectronics had the biggest gain. It got its first big order for very fast network parts for data centers from a large cloud customer. Its annual report shows sales of $455.7 million in 2025, up from $217.6 million in 2023.
Modine, which makes cooling gear, and Celestica, which builds network switches, are in the group too.
Show the data
| Category | Value |
|---|---|
| Bitcoin miners with data centers | 2.40x |
| Sold parts to AI data centers | 1.39x |
| Other small firms | 1.11x |
| Came with chip, hardware or data skills | 1.04x |
| AI firms from before ChatGPT | 1.04x |
| New to AI from other trades | 0.75x |
Bitcoin miners that turned to AI
These firms had big sites full of computers, many used to mine bitcoin, and then moved into AI. How they did depends on when you start. Most fell from their first AI news, but the group rose a lot from the day ChatGPT came out.
Of the 13 with prices, the middle one fell 61% from its first AI news. Eight of the 13 ended lower.
From the day ChatGPT came out, the group's middle firm rose 241%. Bitcoin rose about 350% in that time, based on Coinbase prices. So the group rose less than bitcoin did.
IREN and TeraWulf had the biggest gains since ChatGPT, each more than tenfold. Both signed large AI deals.
In November 2025, IREN announced a $9.7 billion AI cloud deal with Microsoft. It rents out its computer power. In August 2025, TeraWulf signed 10-year AI hosting deals with Fluidstack. It rents out space and power for AI computers.
TeraWulf's annual report for 2025 shows that leases of its computer space were about a tenth of its sales. So AI hosting was still a small part of its business. Applied Digital launched an AI cloud service in May 2023. Its sales were $611.3 million in the year to May 31, 2026, its annual report shows.
Firms that jumped into AI from other trades
Firms that jumped into AI from unrelated work fell much further than their peers. The typical one also ended with about five times as many shares.
These 26 came from many trades. Most often they came from drug making, medical products, apps or computer software. From their first AI news they fell 82%, while their peers fell 26%.
Their typical share count grew to 5.2 times what it was before ChatGPT, after adjusting for stock splits. More shares mean each old share owns a smaller slice of the firm. This is called dilution. Their typical sales shrank to 0.75 times the earlier year.
Of the 26, 22 did a reverse stock split. That swaps several old shares for one new one. It raises the price of each share but not the firm's total value.
A few had chased an earlier trend. From April 2020 to November 2022, 3 of the 26 announced a move into crypto, cannabis, electric cars, NFTs or the metaverse. That compares with about 3% of other small firms. But firms that came to AI with chip or data skills, or data centers of their own, did this at least as often. So it does not set the newcomers apart from them.
Show the data
| Category | Value |
|---|---|
| New to AI from other trades | 5.2x |
| Bitcoin miners with data centers | 3.2x |
| Came with chip, hardware or data skills | 3.0x |
| AI firms from before ChatGPT | 2.5x |
| Sold parts to AI data centers | 1.3x |
| Other small firms | 1.1x |
Firms that brought chip or data skills to AI
Firms that came to AI with chip, hardware or data skills did better than their peers. Their typical stock rose 13%, while their peers fell 45%.
There are 7 of them, and 4 of the 7 beat their peers from their first AI news.
Innodata is one. It already ran a data business that gets data ready for other firms. Then it moved into training data for AI models. Its sales rose from $79.0 million in 2022 to $251.7 million in 2025, as its 2022 and 2025 annual reports show. That is far faster than its group's middle firm.
Older AI firms fell too
Being an AI firm before the boom did not protect most small ones. Eighteen of the 22 are lower than on the day ChatGPT came out.
These 22 small firms sold AI software, AI data work or AI products before ChatGPT. From their first AI news after ChatGPT came out, their stocks fell 81%. Their peers fell 53%.
Their sales barely grew, to 1.04 times the earlier year. Their share count grew to 2.5 times. Demand may have grown faster for data center parts than for small AI products like theirs.
SoundHound AI and BigBear.ai are among the few that rose since ChatGPT came out. SoundHound rose about 230%. Its sales doubled to $168.9 million in 2025, helped by buying other firms, its annual report says.
What this means for AI news from small firms
Two gaps in the results match two plain questions about any small firm's AI news. They are not a guide to buying or selling.
The big split was between firms that sold parts to AI builders and firms that sold AI of their own.
Bringing what AI builders want went with better results too. The 7 firms with chip, hardware or data skills did far better than the 26 from other trades.
A firm's sales and share count are in its yearly and quarterly reports. They are free on SEC EDGAR, the site where US firms file them. Its press releases are on its StockTitan page.
- What does it sell, and to whom? +77% against -81% Firms selling parts to AI data centers against older AI firms, which sold AI before ChatGPT.
- Does it bring what AI builders want? +13% against -82% Firms with chip, hardware or data skills against newcomers from other trades.
Is this an AI bubble?
Among small firms, the parts makers gained most from their first AI news. Older AI firms and newcomers fell most. Big firms like Amazon and Nvidia are not part of it.
For context, take two funds. The iShares Russell 2000 ETF holds small firms, weighted by size. It rose 49% from the day ChatGPT came out to October 30, 2026. The SPDR S&P 500 ETF holds large US firms. It rose 85%.
Over the same days, the middle one of 1,939 other small firms fell 11%.
From their first AI news, the parts makers had the biggest typical gain of the five groups. Among small firms, selling what AI builders bought did better than an AI name.
What to watch
- How much of TeraWulf's sales come from AI hosting: its 2026 annual report on SEC EDGAR, which splits sales by type as the 2025 one did.
- Whether the parts makers' sales pull ahead of their share counts: their next annual reports on SEC EDGAR.
Our numbers
These are our own figures, and they show what happened, not why. We counted US-listed firms worth under $2 billion on November 30, 2022, the day ChatGPT came out. Those that grew later stay in. Firms that began or resumed trading after that, such as Nebius, are not in it.
- 82 firms, 81 with prices, in five groups: sorted by the business each had before its first AI news.
- +77% parts makers, +13% firms with chip, hardware or data skills, -61% bitcoin miners, -82% newcomers, -81% older AI firms: the middle firm's move from its first AI news to October 30, 2026.
- Parts makers are firms whose releases tie orders or sales to AI data centers, so the group leans toward good news.
- Each move starts at the close before the first AI news and is adjusted for splits. Firms that left their exchange count at their last price.
- -27%, -45%, -32%, -26% and -53%: their peers, in the same order, over the same days.
- Peers are small firms of the same size whose stock had, or had not, halved in the year before ChatGPT.
- +98%, +64%, +241%, -96% and -85% for the same groups, and -11% for 1,939 other small firms: the middle firm's move since November 30, 2022.
- 11 of 13, 4 of 7, 6 of 13, 5 of 26 and 7 of 22: firms ahead of their peers, in the same order.
- 10 of 13 parts makers up and 8 of 13 miners down from their first AI news. 18 of 22 older AI firms down since ChatGPT.
- +73%: parts makers without the biggest winner. +22% average and -68% middle firm: the 46 firms that turned to AI.
- 1.39, 1.04, 2.40, 0.75 and 1.04 times the sales, same order, and 1.11 for other small firms: latest business year against the one ending mid-2022 to mid-2023.
- 1.32, 3.0, 3.2, 5.2 and 2.5 times the shares, same order, and 1.1 for other small firms: latest filing against the last one before ChatGPT.
- 22 of 26 newcomers did a reverse split.
- 3 of 26 newcomers had an earlier trend headline. So did 4 of 21 firms with skills or data centers, 20 of them with prices, and 61 of 1,939 other small firms.
- More than tenfold for IREN and TeraWulf, and about 230% for SoundHound AI: since ChatGPT came out.
- About +350% for bitcoin: Coinbase daily prices. +49% and +85% for the two funds: StockTitan prices. The funds' moves run from the day ChatGPT came out.
Frequently asked questions
Is AI a bubble?
For small US firms, it depends on what they sell. Among them, those selling parts to AI data centers gained most from their first AI news after ChatGPT came out in November 2022. Older AI firms and newcomers from other trades fell most, far more than their peers.
What are small cap AI stocks?
Small cap means a firm whose shares are worth little in total, here under $2 billion. Small cap AI stocks are such firms whose work is AI or needs it. They come in five kinds: parts makers for AI data centers, bitcoin miners that turned to AI, firms with chip or data skills, older AI firms, and newcomers from other trades.
How are small cap AI stocks doing?
It depends on what the firm sells. From their first AI news to October 30, 2026, the typical parts maker for AI data centers rose. The typical older AI firm and the typical newcomer fell hard. From the day ChatGPT came out, bitcoin miners rose most.
Why do small AI companies do reverse stock splits?
A reverse split swaps several shares for one. That raises the price of each share but not the firm's total value. Small firms often do one after their stock falls very low. Most of the 26 newcomers did at least one.
Where can I find small AI companies' filings and press releases on StockTitan?
Each firm's press releases are on its StockTitan page. Search its name or ticker to find it. The press release feed lists new ones as they come out. Yearly and quarterly reports are on SEC EDGAR.
Sources
- StockTitan press release archive
- IREN on StockTitan
- TeraWulf on StockTitan
- Innodata on StockTitan
- Applied Optoelectronics on StockTitan
- Applied Digital on StockTitan
- BigBear.ai on StockTitan
- SoundHound AI on StockTitan
- iShares Russell 2000 ETF on StockTitan
- SPDR S&P 500 ETF on StockTitan
- IREN, AI cloud contract with Microsoft, November 3, 2025
- TeraWulf, AI hosting agreements with Fluidstack, August 14, 2025
- Applied Digital, AI cloud service, May 15, 2023
- Applied Optoelectronics, 800G transceiver order, December 10, 2025
- Coinbase Exchange, BTC-USD daily prices around November 30, 2022
- Coinbase Exchange, BTC-USD daily prices around October 30, 2026
- Applied Digital, annual report for the year to May 31, 2026
- TeraWulf, annual report for 2025
- Innodata, annual report for 2022
- Innodata, annual report for 2025
- Applied Optoelectronics, annual report for 2025
- SoundHound AI, annual report for 2025
- SEC EDGAR full text search
The information provided in this article is for educational and informational purposes only. It does not constitute financial advice, investment recommendation, or an endorsement of any particular investment strategy. Past performance does not guarantee future results. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.