Forget the Magnificent 7: 3 Hidden Gem Stocks Set to Soar 100%+

The Magnificent Seven has dominated the headlines in the past two years if you’ve been looking for stocks with outsized upside potential. Investors have traditionally looked into small-cap stocks when looking for such gains, and you can thank the AI rally for the gains in these big-cap stocks.

Things may be shifting back, though. The big-cap stocks are at nosebleed valuations and there are many small-cap stocks that are now flying under the radar. Such stocks could start gaining more as investors dig deeper for more upside as these big-cap stocks inevitably become too fat to push higher at the current speed.

Even if that doesn’t happen, with the Trump administration in office, a push for more rate cuts could make small-cap stocks more attractive.

Here are three to look into that could double by 2026:

Netlist (NLST)

Netlist (OTCMKTS:NLST) is a tech company that makes memory subsystems and data storage products. Despite the alignment with AI and the data center sector, the stock is down nearly 61% over the past year.

In Q3 2024, sales surged 140% year-over-year to $40.2 million and revenue totaled $112.85 million for the first nine months of the year. This is up sharply from $35.75 million in the same period in 2023.

It secured a $303 million damages award against Samsung for patent infringement in 2023. It won $445 million from Micron (NASDAQ:MU) in May 2024. It then got another $118 million in late 2024, again from Samsung. For clarification, Netlist’s market capitalization is at $190.4 million. Payment is still pending, but it will make the stock a lot more attractive once that is reflected on its balance sheet. Netlist and Samsung signed a 2024 Joint Development and License Agreement (JDLA). Samsung is forced to cooperate to keep its production protected from further lawsuits.

It is now targeting Google with a trial expected this year. Potential damages are expected over $1 billion.

In the meantime, it did report a net loss of $9.4 million in Q3, but the growth and cash available here should drive more long-term growth. Neither payment has been fully received yet, but the damages awards would completely eliminate debt and free up lots of room for growth going forward.

If it wins the Google (NASDAQ:GOOG, NASDAQ:GOOGL) lawsuit and receives all the payments, I think it could double.

The consensus price target of $2 implies 181.7%.

Nano Dimension (NNDM)

Nano Dimension (NASDAQ:NNDM) is a 3D printing company. It focuses on Additively Manufactured Electronics (AME), which enables rapid prototyping and production of PCBs. It recently acquired Desktop Metal and Markforged and expanded into metal and polymer 3D printing. The niche aligns well with the AI and robotics megatrends.

Nano Dimension’s Q3 sales grew 22% year-over-year to $14.9 million, though it is still not profitable. That said adjusted EBITDA losses did improve to $14.8 million from $30.1 million.

NNDM stock has been trading sideways for nearly three years, but it has a good chance of rallying sharply in the coming years as its acquisitions are expected to drive combined revenue of $340 million by 2026. Management also targets EBITDA positivity by Q4 2026 and it holds $761 million in cash and cash equivalents.

Navitas Semiconductor (NVTS)

Navitas Semiconductor (NASDAQ:NVTS) is a power semiconductor company that specializes in ultra-efficient gallium nitride (GaN) and silicon carbide (SiC) tech. It aims to replace legacy silicon chips with faster and more energy-efficient alternatives.

Navitas Semiconductor posted $21.7 million in Q3 2024 revenue. This is down 1.4% from Q3 2024, and it also reported a GAAP operating loss of $29 million, which is also worse than its $28.6 million loss in the year-ago quarter.

The forecast for this year isn’t that good either. The consensus estimate is $89.3 million, down 2.3% year-over-year and was revised down from an earlier estimate of $121.1 million. Losses are also expected to widen.

In 2026 though, the company is expected to start recovering sharply. Revenue is expected to grow 44.8% and EBITDA loss is expected to improve by 67.6%. Some analysts think it could even jump into the positives.

This is due to demand from AI data centers and a new focus on AI efficiency thanks to DeepSeek. Navitas has a lot to gain in the long run. Its new 48V GaN platform targets next-gen AI data centers, which require ultra-efficient power conversion for high-performance GPUs like NVIDIA’s Blackwell. Needham projects $140 million in 2026 sales (8% above consensus) if AI/EV adoption accelerates.

As such, I believe it could double by 2026 if the stars align.

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