"It's riskier to invest in small cap stocks than mega-cap leaders, but those same small cap investments can produce outsized returns. The advantage of small cap stocks is that fewer people know about them, and that makes it possible for savvy investors to find asymmetric risk opportunities. All stocks get lifted by a bull market, but these three small caps are worth keeping on your radar."
"Amplitech (NASDAQ:AMPG) produces high-performance radio frequency components that are essential for AI, 5G networks, and quantum computing. It has several high-profile customers, including IBM ( NYSE:IBM), Disney ( NYSE:DIS), and NASA. Revenue surged by 115% year-over-year in Q3 2025, and gross profits more than doubled. The company has a robust balance sheet that includes $11.9 million in cash and zero long-term debt as it moves toward the next stage of growth."
"Digi Power X ( NASDAQ:DGXX) is an AI data center stock that has almost doubled over the past year. The company's recent $20 million investment in Nvidia ( NASDAQ:NVDA) chips is a good sign as it continues to expand. Digi Power X's AI investments also come as it increases its Bitcoin ( CRYPTO:BTC) and Ethereum ( CRYPTO:ETH) holdings. Digi Power X is gradually scaling Tier III AI data centers, which are more lucrative than crypto data centers."
Small-cap stocks carry higher risk than mega-cap leaders but can deliver outsized returns because fewer investors know them, enabling discovery of asymmetric risk-reward opportunities. Amplitech produces high-performance radio-frequency components used in AI, 5G networks, and quantum computing, counts IBM, Disney, and NASA as customers, reported 115% revenue growth in Q3 2025, doubled gross profits, and holds $11.9 million cash with no long-term debt while projecting substantial revenue growth in fiscal 2025–2026. Digi Power X has nearly doubled year-over-year, invested $20 million in Nvidia chips, increased Bitcoin and Ethereum holdings, and is scaling Tier III AI data centers toward much larger capacity.
Read at 24/7 Wall St.
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