Small-cap stocks poised to potentially boom in 2024 included high-growth AI-driven chip, technology, and specialized service firms, with notable mentions like ACM Research (ACMR), Credo Technology (CRDO), and Advanced Energy Industries (AEIS). Other potential performers highlighted in early 2024 included Everi Holdings (EVRI), Red Cat Holdings (RCAT), and Dave Inc. (DAVE), driven by sector-specific momentum in technology, defense, and fintech.
After an earnings recession in 2023 and flat growth in 2024, small caps can be expected to rebound. The S&P SmallCap 600 is projected to deliver earnings growth of just under 8% in 2025, followed by growth of 21.2% in 2026 (see chart).
This analyst recommends quantum stocks - but patience is required. D-Wave is one quantum company that Mizuho recommends for investors looking to play an emerging trend in computing. Nvidia's stock is up nearly 22,000% over the past 10 years, and up 46,000% over the past 15.
Potential Multibagger Small Caps Ver3
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US small-cap earnings are showing signs of a strong rebound. In the second quarter of 2025, they recorded their first positive earnings, fueled by improving sales and margins. Notably, 25% of Russell 2000 companies have reported at least two consecutive quarters of accelerating earnings.
What are the Magnificent Seven stocks? The Magnificent Seven stocks are the stock market's current leaders in driving technological innovation: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.
Along with Micron, Cramer named a number of similar stocks that have already seen huge gains this year, including Western Digital , Seagate and Sandisk .