A Top Small-Cap AI Stock to Buy Now and Into 2026
2025-12-18 21:05:42 ET
Small-cap stocks are those with market capitalizations ranging from $300 million to $2 billion. These stocks, as a group, should be viewed as higher-risk/potentially high-reward investments.
Some of them will likely turn out to be huge long-term winners. After all, many great-performing large-cap stocks started as small caps. Nvidia stock was a small-cap stock just over 20 years ago, and now the company is the leading maker of artificial intelligence (AI) chips, boasting a market cap that's the largest on the S&P 500 index at a whopping $4.2 trillion.
Small caps have powerful growth potential because it's easier for smaller companies to grow earnings faster on a percentage basis than it is for larger companies -- and percentage earnings growth essentially drives stock-price performance.
NASDAQ: PLPC
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