iRobot Corporation

Shares of robotic vacuum cleaner maker iRobot have&nbsp;<a href="https://finance.yahoo.com/quote/IRBT/">plunged</a>&nbsp;about 83% in early trading on Monday, December 15, after the pioneering company <a href="https://investor.irobot.com/news-releases/news-release-details/irobot-announces-strategic-transaction-drive-long-term-growth">announced</a>&nbsp;it had filed for bankruptcy and agreed to sell the business to its main creditor.

Robot vacuum maker iRobot files for bankruptcy; shares plunge 80%

Planet Labs PBC

Shares of Planet Labs, a mid-cap satellite data provider, rose 35% to a record high on Thursday, December 11, after the company <a href="https://investors.planet.com/news/news-details/2025/Planet-Reports-Financial-Results-for-Third-Quarter-of-Fiscal-Year-2026/default.aspx">reported</a>&nbsp;quarterly results showing record revenue and, for the first time, break-even earnings per share. The stock is already up more than 330% year to date, but the latest earnings, as <i>Barron’s </i>put it, “might send it to Mars.”

Earth imaging co. Planet Labs continues to add to 340% YTD gain amid latest earnings

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

Nextdoor Holdings, Inc.

Opendoor Technologies Inc.

Better Home & Finance Holding Company

Shares of Nextdoor, which operates a hyperlocal social networking service for neighborhoods, have&nbsp;<a href="https://finance.yahoo.com/quote/NXDR/">jumped</a>&nbsp;more than 25% in the first minutes of early trading on Thursday, December 11, extending the previous day’s rally. The surge <a href="https://www.bloomberg.com/news/articles/2025-07-25/the-man-behind-a-tiny-toronto-hedge-fund-that-revived-meme-mania">followed</a>&nbsp;comments from EMJ Capital, the hedge fund behind the revival of "meme mania" – it called the company “one of the most misunderstood platforms in the market,” which has yet to recognize its potential in AI.

Nextdoor surging as meme fund manager calls it 'one of most misunderstood platforms'

Photronics, Inc.

Shares of Photronics, a mid-cap manufacturer of photomask technologies that are a key component in semiconductors, <a href="https://finance.yahoo.com/quote/PLAB/">surged</a>&nbsp;more than 45% on Wednesday, December 10, to mark their highest level since mid-2001. Investors were snapping up the stock after the company reported quarterly <a href="https://photronicsinc.gcs-web.com/news-releases/news-release-details/photronics-reports-full-year-and-fourth-quarter-fiscal-2025">results</a>&nbsp;that <a href="https://www.barrons.com/articles/photronics-earnings-stock-price-67f82a0f?st=njSZRM">beat</a>&nbsp;Wall Street’s expectations across all major indicators.

Quarterly earnings lift semiconductor supply stock Photronics to 24-year high

Ligand Pharmaceuticals Incorporated

Amgen Inc.

Merck & Co., Inc.

Pfizer Inc.

Gilead Sciences, Inc.

Equity investors should take a closer look at mid-cap Ligand Pharmaceuticals for a more conservative bet on the biotech industry, Citigroup argues. In his initiation report (as quoted by <a href="https://www.cnbc.com/2025/12/09/a-biotech-stock-for-investors-scared-to-invest-in-the-risky-industry.html">CNBC</a>), Citi analyst Yigal Nochomovitz highlights Ligand as "the 'Goldilocks’ pick for investors seeking exposure to biotech upside while mitigating volatility” thanks to its broad portfolio of products.

Citi spotlights Ligand as 'Goldilocks’ pick' for conservative biotech investors

The Russell 2000 pushed to a fresh intraday high on Tuesday, December 9, as investors continued piling into small caps, but the small- and mid-cap index faded into the close and stopped just short of another all-time high, which would have been its eighth just since September. The small-cap segment may get a further boost today if the Fed announces another rate cut. Still, Noble Capital Markets cautions that the rally remains exposed to macro and Fed-policy risks.

Russell 2000 almost hits another all-time high, but how much upside remains?

Structure Therapeutics Inc.

Novo Nordisk A/S

Eli Lilly and Company

Shares of Structure Therapeutics more than doubled on Monday, December 8, closing near $70 apiece, with <a href="https://finance.yahoo.com/quote/GPCR/">the company’s market capitalization</a> rocketing above $4.2 billion. This followed mid-stage trial results for its experimental oral obesity drug, aleniglipron, which <a href="https://ir.structuretx.com/news-releases/news-release-details/structure-therapeutics-reports-positive-topline-data-access">delivered</a>&nbsp;greater weight loss than a <a href="https://lilly.mediaroom.com/2025-08-07-Lillys-oral-GLP-1,-orforglipron,-delivers-weight-loss-of-up-to-an-average-of-27-3-lbs-in-first-of-two-pivotal-Phase-3-trials-in-adults-with-obesity">competing pill</a> under development by Eli Lilly. Analysts say the stock may have further upside, particularly if a major player moves to acquire the company.

Structure shares double after 'near-homerun' obesity pill data

SunOpta Inc.

Shares of SunOpta, a small-cap producer of plant-based beverages, have the potential to more than double versus current levels, according to a Freedom Broker initiation report seen by <i>Oninvest</i>. SunOpta already dominates the milk-alternative market, and demand for its fruit snacks is outstripping supply, the analysts noted. However, rising competition from large corporations, like Danone, could pressure SunOpta’s pricing and market share, they caution.

Freedom makes case for shares of organic food co. SunOpta to double in initiation

DigitalBridge Group, Inc.

Shares of DigitalBridge, a mid-cap digital infrastructure firm investing across data centers, cell towers, fiber networks, small cells, and edge infrastructure, <a href="https://finance.yahoo.com/quote/DBRG/?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAANJzO7qhtq4ftfonGEodVUta3W7CcmJ8wkHgYAForTOSW-XBS4xlKF7KLyQk0L35CoYcX_jqygts2GD4qGMiFBIdNwS4SdNJF98C33sKbOp9lSNggPnmigup5BLKbWDPzB_A28f6kwvxv2u7wovLH2Nc3V4Qa7V3KMWqsBlp24tN">soared</a>&nbsp;more than 45% on Friday, December 5. The company’s <a href="https://finance.yahoo.com/quote/DBRG/">market capitalization</a>&nbsp;thus exceeded $2.75 billion. This followed reports from <a href="https://www.bloomberg.com/news/articles/2025-12-05/softbank-said-in-talks-to-buy-data-center-investor-digitalbridge">Bloomberg</a>&nbsp;and <a href="https://www.reuters.com/legal/transactional/softbank-talks-buy-digital-infra-firm-digitalbridge-source-says-2025-12-05/">Reuters</a>&nbsp;that SoftBank is in talks to buy DigitalBridge. Wall Street analysts <a href="https://www.marketwatch.com/investing/stock/dbrg/analystestimates?mod=mw_quote_tab">believe</a>&nbsp;that even after Friday’s surge, its shares still have more than 26% upside.

Digital infra investor DigitalBridge soars on potential SoftBank takeover deal

VolitionRx Limited

Shares of VolitionRx, a micro cap developer of blood-drop tests for cancer and sepsis, <a href="https://finance.yahoo.com/quote/VNRX/">jumped</a>&nbsp;9.5% yesterday, December 4. The company <a href="https://ir.volition.com/news-events/press-releases/detail/860/volitionrx-limited-announces-the-first-sale-of-the-nu-q-cancer-assays-for-clinical-certification-in-preparation-for-routine-clinical-use">reported</a>&nbsp;that France has selected its sepsis test for early disease detection in hospitals. Overall, Wall Street <a href="https://www.marketwatch.com/investing/stock/vnrx/analystestimates?mod=mw_quote_tab">believes</a>&nbsp;VolitionRx shares still have 730% upside.

Epigenetics co. VolitionRx climbs 10% on sepsis assay news, still offers 730% upside

Red Cat Holdings, Inc.

Perimeter Solutions, Inc.

Climb Global Solutions, Inc.

Guardian Pharmacy Services, Inc.

Astronics Corporation

By the end of this year, interest in small caps is picking up as investors confront an overheated tech sector and increasingly concentrated, outstripping growth by a handful of AI stocks. According to Alyona Nikolaeva, portfolio manager at asset manager Astero Falcon, the more attractive opportunities now lie in small caps, where fundamentals remain stable, and valuations within reason.

Small caps