The Russell 2000 has lagged while large-cap tech attracted most attention, but corporate capex spending is increasing for AI infrastructure, power buildouts, and reshored manufacturing. Small-cap industrial and energy companies trading below $30 are positioned to benefit as capital spending accelerates. Mayville Engineering Company is a Wisconsin-based contract manufacturer providing prototyping, fabrication, and finishing for commercial vehicles, construction equipment, agriculture, military, and data centers. The Datacenter and Critical Power segment has shown rapid growth, with revenue up 470.2% year over year in the first quarter and expected to exceed 20% of total revenue in 2026. Management raised full-year net sales guidance and secured new datacenter and critical power awards in the first quarter. Risks include declines in legacy commercial vehicle revenue and negative adjusted EPS in the quarter.
"The Russell 2000 has spent most of the past year as the unloved corner of the U.S. market while large-cap tech soaked up the attention. That is starting to shift as corporate capex budgets swell for AI infrastructure, power buildouts, and reshored manufacturing. Small-cap industrial and energy names trading under $30 are exactly the kind of stocks that benefit when that money starts moving, and the ones still flying under the radar are where retail investors can actually get in before the institutional flows show up."
"Mayville Engineering Company (NYSE: MEC) is a Wisconsin-based contract manufacturer that does prototyping, fabrication, and finishing work for OEMs across commercial vehicles, construction equipment, agriculture, military, and increasingly, data centers. Shares recently traded around $25.22, still comfortably under the $30 ceiling and well below the average analyst price target of $32.90. All five analysts covering the name rate it a Buy, and the stock has quietly rallied 33.09% year-to-date without much fanfare."
"The bull case is straightforward. Mayville's Datacenter and Critical Power segment, built around the Accu-Fab acquisition, posted revenue growth of 470.2% year-over-year in the first quarter and is on track to make up more than 20% of total revenue in 2026. Management raised the low end of full-year guidance to a range of $590 million to $620 million in net sales and locked in roughly $50 million in new Datacenter and Critical Power awards in Q1 alone. CEO Jag Reddy framed it as "strong momentum, driven by successful project ramp activity in our Datacenter & Critical Power end market.""
#small-cap-stocks #corporate-capex #ai-infrastructure #power-infrastructure #industrial-manufacturing
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