Absci Corporation

Mitek Systems, Inc.

Evolv Technologies Holdings, Inc.

The AI Small Cap Index, assembled for Oninvest by analyst Aldiyar Anuarbekov, delivered a strong gain in 2025. The index includes 43 small caps whose businesses are linked to AI infrastructure, sensing technologies, robotics, and quantum computing. For 2025, the equal-weight index climbed 34.6%, while the cap-weight index rose 58.2%. For comparison, the broad-market S&amp;P 500 gained 16.3%, while the Russell 2000, which tracks smid-cap companies, advanced 11.3% over the same period.

Three AI small caps that look ready to extend gains as investors grow more selective

NextVision Stabilized Systems, Ltd.

Aryt Industries Ltd.

Gilat Satellite Networks Ltd.

Mobilicom Limited

ParaZero Technologies Ltd.

The escalating conflict between Israel and the U.S. and Iran is fueling demand for modern warfare defense and software systems faster than supply chains can keep up. In Israel’s equity market, this has significantly boosted defense and tech companies. On <a href="https://www.tradingview.com/news/te_news:529637:0-israel-stocks-hit-record-high/#:~:text=Israel%E2%80%99s%20main%20stock%20index%2C%20the%20TA%2D125%2C%20surged%20nearly%206%25%20on%20Monday">Monday</a>, the Tel Aviv Stock Exchange’s benchmark TA-125 index rose as much as 6% intraday. On <a href="https://market.tase.co.il/en/market_data/index/137/major_data#:~:text=Previous%20Trading%20Days">Tuesday</a>, the index closed up 4.75%.

Which small Israeli defense tech stocks can vie with large peers for defense budgets?

Bajaj Consumer Care Limited

MTAR Technologies Limited

MRV Engenharia e Participacoes S.A.

Last year showed that small caps in emerging markets can compete with large issuers, despite a <a href="https://en.oninvest.com/article/undervalued-small-caps-where-to-make-money-in-emerging-markets">lag</a>&nbsp;that persisted through the third quarter. For 2025, the return of the Equal Weight EM Small Cap Index, put together by analyst Aldiyar Anuarbekov for Oninvest, amounted to 18.25% in dollar terms*. For comparison: the broad-market S&amp;P 500 index grew 16.65%, while the smid-cap Russell 2000 rose 11.21% last year. The 8.06% increase in the Cap Weight EM Small Cap Index, meanwhile, indicates that the gains were more evenly distributed rather than concentrated in a small number of large stocks.

Where to find outstripping returns in EM small caps in 2026

Applied Digital Corporation

TeraWulf Inc.

Hut 8 Corp.

In 2025, the bitcoin mining sector rebounded strongly and outpaced the performance of the cryptocurrency itself. The Smid-cap Bitcoin Miner Equal Weight Index, put together by analyst Aldiyar Anuarbekov for Oninvest, gained 46%. The index includes 17 small- and mid-cap mining companies. Meanwhile, the&nbsp;Smid-cap Bitcoin Miner Cap Weight Index&nbsp;added 27%. By comparison, bitcoin fell 9.7% in 2025, while the S&amp;P 500 rose 16.3%. In 2026, investors are increasingly betting on companies at the intersection of mining and AI infrastructure.

Bitcoin miners outperformed the cryptocurrency in 2025. What about 2026?

Americas Gold and Silver Corporation

Kingsgate Consolidated Limited

Gold Resource Corporation

One of the main beneficiaries of the 2025 gold rally was small-cap mining companies. The Small Cap Gold Miner Equal Weight Index, <a href="https://en.oninvest.com/article/gold-fever-small-cap-miners-surging-as-bullion-hits-record-highs">assembled</a>&nbsp;by analyst Aldiyar Anuarbekov specially for&nbsp;Oninvest&nbsp;and including 45 gold producers with market capitalizations of up to $2 billion (see the note on index composition below), soared&nbsp;202.5% in 2025. Meanwhile, the&nbsp;Small Cap Gold Miner Cap Weight Index&nbsp;skyrocketed 208.8% last year.&nbsp;Both indexes significantly outperformed both gold itself and even equities: the precious metal gained 64.5% – its best performance in 46 years – while the S&amp;P 500 added 16.4%.

Biggest small-cap winners from the 2025 gold rally and what to expect in 2026

Frontier Developments plc

Ubisoft Entertainment SA

Remedy Entertainment Oyj

Video games remain one of the fastest growing categories in the entertainment industry. According to Bloomberg Intelligence estimates, total global sales of gaming companies exceeded $183 billion in 2024. Analysts expect the upward trend to continue amid structural technological shifts, including the development of cloud gaming, the use of AI tools in game development, and the emergence of new gaming platforms.

How to make money on small caps in the gaming sector

The Oncology Institute, Inc.

Nutex Health Inc.

Claritev Corporation

Healthcare small caps have gained momentum in 2025. According to a Bloomberg Intelligence report published in November, the top-performing segments of the Russell 2000 in the first quarter of 2025 were utilities first, financials second, and health care third.

These small-cap healthcare names have rocketed YTD

Moura Dubeux Engenharia S.A.

Small-cap stocks in emerging markets continue to lag their large-cap peers. Global equity gains are being driven primarily by major tech companies, while the anticipated lift from the Fed’s rate cuts has yet to filter through to emerging-market small caps – historically, these companies, more sensitive to capital costs, react to falling funding costs with a delay.

Undervalued small caps: Where to make money in emerging markets

secunet Security Networks Aktiengesellschaft

Allot Ltd.

In 2025, cybersecurity remains one of the most dynamic areas of high tech. Insight Partners <a href="https://www.theinsightpartners.com/reports/cyber-security-market#:~:text=The%2520Cybersecurity%2520Market%2520size%2520is%2520projected%2520to%2520reach%2520US%2524%2520228.33%2520billion%2520in%25202024%2520and%2520is%2520projected%2520to%2520reach%2520US%2524%2520552.35%2520billion%2520by%25202031%253B%2520it%2520is%2520expected%2520to%2520register%2520a%2520CAGR%2520of%252013.8%2525%2520during%25202025%25E2%2580%25932031.">estimates</a>&nbsp;that the market for data and network security solutions will almost double between 2024 and 2031 to reach $552.4 billion. Growth in the sector is being driven by increasing cyberattacks, more stringent data-processing requirements, the shift to cloud services, and the rapid adoption of AI.

With cyberattacks and AI crime on the rise, these small caps are poised to benefit

Energy Vault Holdings, Inc.

Microvast Holdings, Inc.

Eos Energy Enterprises, Inc.

The global clean energy sector is significantly outperforming the broader market in 2025, with the S&amp;P Global Clean Energy Transition Index <a href="https://www.hanwha.com/newsroom/news/feature-stories/iea-world-energy-investment-report-2025-where-is-global-capital-flowing.do#:~:text=Clean%2520energy%2520continues%2520to%2520dominate%252C%2520attracting%2520%25242.2%2520trillion%2520in%2520global%2520investment%2520%25E2%2580%2594%2520more%2520than%2520double%2520that%2520of%2520fossil%2520fuels.">up about 39% year to date</a> as of October 1. For comparison, the MSCI World has gained about 16% over the same period.

Betting on green energy: The small caps emerging as the biggest winners

Amprius Technologies, Inc.

Ballard Power Systems Inc.

Resolute Holdings Management, Inc.

While tech giants remain at the center of market attention, another trend – the rapid rise of small-capitalization industrial stocks – has largely gone unnoticed. Take the Equal Weight Industrial Small Caps Index, compiled for Oninvest by analyst Aldiyar Anuarbekov: it has gained 19.6% year to date.

While tech steals the spotlight, small cap industrials outperforming in 2025

Caledonia Mining Corporation Plc

International Tower Hill Mines Ltd.

Pantoro Gold Limited

In 2025, the gold market has staged a remarkable rally. Year to date, the precious metal has gained nearly 57%, repeatedly setting new records and reaching around $4,380 per ounce. The surge was driven by geopolitical uncertainty, expectations of Fed easing, and record central-bank gold purchases. Investor interest has also spiked as gold is once again looked to as a preferred safe haven amid global economic turbulence.

Oninvest Index