The inventory index keeps the meme stock on its toe, making it easy to be swept easily into the animal spirit these days.
The Big Technology leader reported strong second quarter revenue last week, indicating that demand for artificial intelligence has not slowed. This sparked even more bullish off Wall Street as analysts raised price targets on both old favorites and news.
However, there is still opportunity in the less-loved corner of the market, and some investors say they are turning to small stocks that seem to be poised to get.
Big opportunities, small market capitalization
The Small-Cap Russell 2000 may have struggled in 2025, but investors willing to have due diligence have the opportunity to brew on small and intermediate stocks.
“The small caps are historically underestimated,” Prince Capital founder and chief investment officer, Alexanderwa told Business Insider.
WAH highlighted the importance of the Russell 2000.
“There are a lot [companies ]It's been overlooked, it quietly lacks the bigger industry and lets them know their names,” he said.
He highlighted Sterling Infrastructure, a little-known company that provides AI infrastructure solutions that stood out for him as an effective play in the AI boom.
Related Stories
Business Insider tells the innovative stories you want to know
Business Insider tells the innovative stories you want to know
Brandon Nelson, senior portfolio manager at Calamos Investments, highlighted Sterling as a small-cap play in AI trades.
“Infrastructure that enables AI is a big theme,” he said. Several small caps and mid caps are exposed. All profits within the data center building food chain are required. ”
He nominated Sterling, Limentum Holdings and Argan as examples. All three stocks trading in a small cap range show strong growth, effectively increasing since the beginning of the year. Wow pointed out that Sterling has risen by about four times since his fund's initial investment.
Potential small tails from Capitol Hill
Certain small names may also be poised to benefit from policy changes.
Joe Alger, investment research analyst at Crestwood Advisors, told BI. “The Trump administration is expected to have significantly fewer restrictions on the M&A market.”
Alger noted that M&A has been slower in recent years, but predicted that it could be seen as a revival when he said it would likely be a small cap tail if investors were more clear about the tariffs.
“I think the smaller cap index is the most underrated compared to the larger type of index I've ever seen,” WAH said. “This is great because it means there are plenty of opportunities to find things other people have overlooked.”
