D-Wave Quantum Inc.

SEALSQ Corp

Riber S.A.

Quantum computing is among “the most stable high-return bets of the next decade,” Louis Navellier, founder and chief investment officer of Navellier &amp; Associates, <a href="https://www.investing.com/analysis/the-next-2-big-things-in-a-volatile-market-space-and-quantum-200678260">wrote</a>&nbsp;in a recent post on Investing.com. “In 2026, quantum-classical hybrid models are being used to manage portfolio risk and logistics routing with a precision that classical supercomputers cannot match,” Navellier says. Although the quantum technology market is still at an early stage, growth estimates are rising rapidly: the “$20 billion by 2030” figure is a “common middle-ground estimate,” while, depending on the analyst, projections could be as high as $125 billion, Navellier noted.

Small caps that can gain in 2026 as quantum computing becomes 'next big thing'

Alligator Energy Limited

Western Uranium & Vanadium Corp.

Forsys Metals Corp.

Shares of uranium miners significantly outperformed the underlying commodity market in 2025: the Sprott Uranium Miners ETF <a href="https://sprottetfs.com/media/muhafrp2/urnm-ar-tsr-2025.pdf?m=1">gained</a>&nbsp;nearly 40% over the year. Against this backdrop, price dynamics in the global uranium market were more subdued: spot prices <a href="https://investingnews.com/uranium-price-update/#:~:text=U3O8%20spot%20price%20remained%20more%20constrained%20through%202025%2C%20fluctuating%20between%20a%20relatively%20short%20range%20of%20US%2463.17%20(March%2013)%20and%20US%2483.33%20(September%2025)%20per%20pound.">traded</a>&nbsp;in the $63-83 per pound range, while long-term contract prices <a href="https://investingnews.com/uranium-price-update/#:~:text=the%20long%2Dterm%20contract%20price%20displayed%20less%20volatility%20in%202025%2C%20starting%20the%2012%20month%20period%20at%20US%2480%20and%20reaching%20US%2486%20at%20the%20end%20of%20November.">rose</a>&nbsp;from $80 to $86 per pound. By the end of 2026, Goldman Sachs has&nbsp;<a href="https://www.moomoo.com/news/post/63207946/is-uranium-the-next-gold-goldman-sachs-the-supply-deficit?level=1&amp;data_ticket=1775587806729701#:~:text=Structural%2520shortages%2520will%2520drive%2520prices%2520higher%252C%2520with%2520spot%2520prices%2520projected%2520to%2520reach%2520%252491%2520by%2520the%2520end%2520of%25202026%252C%2520indicating%2520at%2520least%2520a%252020%2525%2520increase.">projected</a>&nbsp;spot prices would reach $91 per pound, driven by a uranium deficit that is expected to widen by nearly 12% to 1.914 billion pounds over the 2025-2045 period.

Which nuclear small caps have benefitted from AI-driven rising electricity demand?

Red Cat Holdings, Inc.

Ondas Inc.

Parrot S.A.

At the end of last year, at the NATO summit in The Hague, members set a <a href="https://www.nato.int/en/what-we-do/introduction-to-nato/defence-expenditures-and-natos-5-commitment#:~:text=At%2520the%25202025%2520NATO%2520Summit%2520in%2520The%2520Hague%252C%2520Allies%2520made%2520a%2520commitment%2520to%2520investing%25205%2525%2520of%2520Gross%2520Domestic%2520Product%2520(GDP)%2520annually%2520on%2520core%2520defence%2520requirements%2520and%2520defence%252D%2520and%2520security%252Drelated%2520spending%2520by%25202035">new benchmark</a>: defense spending at 5% of GDP by 2035. Of that, at least 3.5% is to be allocated to core military needs, and up to 1.5% to resilience, innovation, and the development of the defense industrial base. In the U.S., this has translated into consistent regulatory policy: following a <a href="https://www.whitehouse.gov/presidential-actions/2025/06/unleashing-american-drone-dominance/#:~:text=The%2520United%2520States%2520must%2520accelerate%2520the%2520safe%2520commercialization%2520of%2520drone%2520technologies%2520and%2520fully%2520integrate%2520UAS%2520into%2520the%2520National%2520Airspace%2520System.">White House executive order</a> in June 2025, the Pentagon in July <a href="https://media.defense.gov/2025/Jul/10/2003752117/-1/-1/1/UNLEASHING-U.S.-MILITARY-DRONE-DOMINANCE.PDF">moved</a> to accelerate procurement and deployment of small drones for the military. In January, the new National Defense Strategy <a href="https://media.defense.gov/2026/Jan/23/2003864773/-1/-1/0/2026-NATIONAL-DEFENSE-STRATEGY.PDF">established</a>&nbsp;countering drones as a priority. For the UAV industry, this marks a structural shift: demand is moving from one-off rush orders to formalized, long-term procurement programs. According to <a href="https://www.fortunebusinessinsights.com/drone-services-market-102682#:~:text=Global%20Drone%20Services%20Market%20Key%20Takeaways&amp;text=2025%20Market%20Size:%20USD%2032.08,:%2025.52%25%20from%202026%E2%80%932034">forecasts</a>, the global UAV market will grow from $42.4 billion in 2026 to $261.3 billion by 2034, implying a CAGR of 25.5%.

Oninvest military drone index outperforming small caps and broad market

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.

Oninvest Index