As top tech stocks surge, some investors are shifting their focus to smaller companies, citing potential for growth and resilience in the face of market volatility. Analysts point to AI-enabling infrastructure as a key theme, with stocks like Sterling Infrastructure, Lumentum Holdings, and Argan demonstrating strong year-to-date growth.
Experts believe that small-cap stocks offer an attractive alternative to large-cap companies, particularly in industries such as data centers, where AI infrastructure plays a crucial role. With the Trump administration expected to relax regulations on mergers and acquisitions, some analysts predict a surge in deal-making activity among smaller firms.
“This is great because it means that there is a lot of opportunity to find things that others are overlooking,” said Alexander Wah, founder and chief investment officer of Prince Capital. By focusing on smaller companies with strong growth potential, investors can tap into the AI boom without being tied to the volatility of larger tech stocks.
Source: https://www.businessinsider.com/big-tech-ai-bullishness-small-cap-opportunity-investing-2025-8