Two small-cap tech companies are catching attention for how they’re helping shape the future of cloud, cybersecurity, and next-gen networks. A10 Networks and Ondas Holdings may not be household names, but they are both working in fast-growing areas like AI, automation, and 5G.

A10 Networks: Underrated AI Stock

A10 Networks is based in San Jose. It completely focuses on network security and infrastructure tools.

What makes them stand out is how they are adapting to the rising demand for AI-related systems. Their tools offer high-speed performance, low delay, and built-in protection against cyber threats. That’s becoming more important as companies rely more on the cloud and real-time data.

A10 is also developing solutions for bot protection, DDoS mitigation, and cybersecurity systems designed for GPU-powered AI data centres. These systems are meant to help organizations stay secure while keeping up with the speed of AI development.

While its stock has dipped slightly by 0.3 percent this year, its earnings estimates have remained stable at 88 cents per share. In a year marked by inflation and cautious business spending, that’s a positive sign.

Ondas: All-In on Drones

Ondas is a Boston-based stock that focuses on private wireless networks and drone-based data systems. Its technology is used in industrial areas where fast, secure connections are essential. Their drones are built for serious jobs, not just photography, and are already being used by government and major commercial customers.

As of the first quarter of 2025, Ondas reported a $16.8 million order backlog. It’s expecting at least $25 million in revenue this year, driven by strong interest in its Iron Drone and Optimus platforms. Despite this, the company’s stock has dropped 34.4 percent year to date.

That gap between stock performance and business demand has some investors taking a second look.

Why This Trend Matters

Both companies are benefiting from larger shifts in the tech industry. As cloud computing, 5G, and cybersecurity become central to how businesses operate, the demand for the type of services A10 and Ondas offer is rising.

More companies are moving away from old hardware and switching to software-based solutions that are faster and more flexible.

The network software industry has already grown 23 percent in the past year, outperforming the broader tech sector and even the S&P 500.

While A10 and Ondas still face challenges like inflation and slower capital spending, their focus on AI, automation, and secure infrastructure puts them in a strong position for future growth.