10 Small Cap Stocks with Huge Upside Potential

8. PDF Solutions, Inc. (NASDAQ:PDFS)

Upside Potential: 88%

Market Capitalization: $754.114 million

PDF Solutions, Inc. (NASDAQ:PDFS) is a data solutions provider that empowers enterprises in the semiconductor and electronic market to enhance operational efficiency and improve the overall quality of their products. This small-cap company delivers its offerings to Fortune 500 Companies to achieve smart manufacturing goals. Ever since its incorporation in 1991, PDFS has been an invaluable partner to over 130 semiconductor companies.

With the company’s recent acquisition, we can say that PDF Solutions, Inc. (NASDAQ:PDFS) is on a path to recovery after the unimpressive 2024 results and 2025 guidance. This deal with secureWISE, a widely used remote connectivity solutions provider in the semiconductor industry, is a huge step forward as this would mean a 21-23% revenue growth within the year. Although the earnings for 2026 would reflect a more profound impact, sales guidance suggests around an $18 million contribution per annum.

Like any other high-growth company, PDF Solutions, Inc. (NASDAQ:PDFS) firmly embraces AI. The company is adopting the eProbe purchases model and aiming to expand the applications for advanced logic and DRAM. While maintaining a more balanced spread across system enterprises, foundries, IDMs, and fabless, the tech giant has indulged in some diversification over the years. The customers’ enhanced interest in the DFI eProbe system is the basis of a strong footing for the company in the industry.

The analysts at Stock Scan are highly optimistic about the company’s future performance. By the year’s end, PDF Solutions, Inc. (NASDAQ:PDFS) is anticipated to surge by over 120%, with the stock price rising to an average of $51.18 by late next year. For investors valuing high returns, PDFS is one of the best stocks with the biggest upside, considering the dip the stock is currently experiencing.