Prediction: While Big Tech Grabs Headlines, These Small AI Stocks Could Outperform

Perhaps no stock has symbolized the artificial intelligence (AI) era more than Nvidia. Thanks to AI, it became the first company to reach a $4 trillion market cap, then beat its own record a few months later by exceeding $5 trillion.

Other big tech companies have captured AI headlines in recent years as well, such as Meta Platforms with its plan to build a data center the size of a city to house its AI tech. Yet several smaller businesses are poised to see substantial growth in the years ahead as the AI market expands.

These lesser-known growth stocks offer a great way to capture AI's upside potential. Three in this camp that I predict will deliver attractive returns over the long run are Symbotic (NASDAQ: SYM), Fastly (NASDAQ: FSLY), and Astera Labs (NASDAQ: ALAB).

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Symbotic's AI-powered robots

Symbotic provides warehouse automation, using artificial intelligence to manage a fleet of robot workers. The global AI-powered robotics market is forecasted to expand from $7.5 billion in 2026 to $60.7 billion by 2034, providing a tailwind for its business.

Consequently, Symbotic's sales are soaring. In its fiscal first quarter (ended Dec. 27, 2025), the company reported a strong 29% year-over-year increase in revenue to $630 million. It expects sales to continue growing in the second quarter, with estimates between $650 million to $670 million, representing growth from the prior year's $550 million.

Its fiscal Q1 2026 net income of $13 million was a dramatic turnaround from a $17 million net loss in the prior year. This indicates that its financial health is strengthening.

Symbotic has a multi-year agreement to deploy its systems to all of Walmart's 42 distribution centers. It also had 11 total customers at the end of fiscal Q1 2026, and is regularly improving its tech to attract more.

For instance, in 2025, it introduced new capabilities to increase a customer's storage capacity by up to 40% and accelerate the speed of its robots. As large retailers and wholesalers seek to boost supply chain efficiencies, Symbotic is positioned to grow its business.

Fastly's sales growth and the rise of AI internet traffic

Fastly focuses on the delivery of fast and secure online experiences, such as making sure customer websites load quickly for visitors. As those visitors have increasingly included AI bots scouring the internet for information, the company's sales have skyrocketed.

Fastly achieved record fourth-quarter 2025 revenue of $172.6 million, which represented excellent 23% year-over-year growth. In fact, its sales have risen for the past six quarters.

The company is paid based on usage of its services, and as AI traffic continues to expand, Fastly is well positioned to capture rising revenue. It's also seeing increased adoption of its cybersecurity offerings, as illustrated by 32% year-over-year growth in Q4 2025 security sales.

Fastly isn't profitable -- it exited Q4 2025 with a net loss of $15.5 million -- but its financial health is improving. The Q4 loss was a drop from 2024's $32.9 million net loss, and its $8.6 million in Q4 free cash flow (FCF) was a significant reversal from the prior year's negative FCF of $7.9 million.

Astera Labs' speed boost to AI

Astera Labs specializes in products that accelerate connectivity for AI systems. This ability is in high demand as businesses such as OpenAI strive to build increasingly complex artificial intelligence. To deliver fast responses to users, AI systems must operate as quickly and efficiently as possible, which Astera Labs facilitates.

As a result, the company hit record Q4 2025 revenue of $270.6 million. That represents jaw-dropping 92% year-over-year growth.

To further strengthen its offerings, Astera Labs announced the acquisition of aiXscale Photonics, which is an expert in optical technology designed for complex AI systems. Astera's robust product suite helped it win a partnership with Nvidia to provide connectivity solutions.

However, its success means that its share price valuation has become exorbitant, as seen in its price-to-sales (PS) ratio of about 27 at the time of this writing.

ALAB PS Ratio data by YCharts.

While that's a substantial drop from where it was in 2025, it's still high. For comparison, Fastly's sales multiple is 5, and Symbotic's is 2. Therefore, you may want to wait for a dip in Astera Labs stock before deciding to buy.

Robert Izquierdo has positions in Astera Labs, Meta Platforms, Nvidia, Symbotic, and Walmart. The Motley Fool has positions in and recommends Fastly, Meta Platforms, Nvidia, Symbotic, and Walmart. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.