Forget Nvidia And Broadcom, These 5 Small-Cap Chip Stocks Could Rally Big This Year

For investors weary of chasing incremental upside in already high-flying chip giants like NVIDIA Corp. (NASDAQ:NVDA), Broadcom Inc. (NASDAQ:AVGO) and Advanced Micro Devices Inc. (NASDAQ:AMD), a quieter corner of the semiconductor market may offer a more attractive setup in 2026.

• Credo Technology Group stock is trading in a tight range. What’s next for CRDO stock?

A select group of small- and mid-cap chip stocks is emerging as a potential next leg of outperformance, fueled by continued AI infrastructure spending, rising chip complexity, and strengthening aerospace and defense demand.

In a note published Thursday, Bank of America semiconductor analyst Vivek Arya pointed to five small- and mid-cap semiconductor names that are well positioned to benefit from a market rotation toward under-owned stocks with above-average growth potential.

CRDO: The AI Connectivity Leader

Credo Technology Group Holding Ltd (NASDAQ:CRDO) stands out as the fastest-growing name in the group. The company leads the market in active electrical cables, key components for connecting AI servers, with roughly 75% market share in 2025.

According to Bank of America, the active electrical cable market is set to expand to more than $7 billion by 2030 from about $1.2 billion this year.

Credo currently dominates that niche and could generate $4 billion ...