Small-Cap Tech Stocks Surge Amid AI Frenzy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Newsfilter
- Small-Cap Tech Recovery: U.S. small-cap technology stocks are rebounding significantly after years of underperformance, driven by the AI frenzy that has led investors to focus on smaller companies with strong potential, as evidenced by $49.7 million inflows into the Invesco S&P SmallCap Information Tech ETF this year, ending four consecutive years of outflows.
- Earnings Growth Expectations: Small-cap semiconductor companies are among the top performers, expected to see nearly 40% profit growth in Q2, reflecting massive capital spending on data centers and AI-related infrastructure boosting chip demand, although the broader small-cap tech sector is projected to grow earnings by only 7%.
- Market Performance Disparity: The S&P 600 small-cap tech index has surged nearly 54% this year, compared to a 20.1% rise in the S&P 500 tech index, marking the widest gap since 1995, indicating a relative advantage for small-cap stocks amid the AI investment boom.
- Bubble Risk Warning: Despite the strong performance of small-cap tech stocks, analysts caution that speculative trading may be driving prices higher, and rising global government bond yields could diminish the appeal of smaller tech companies due to their higher sensitivity to economic fluctuations.
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Analyst Views on MARA
Wall Street analysts forecast MARA stock price to rise
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 14.070
Low
13.00
Averages
22.11
High
30.00
Current: 14.070
Low
13.00
Averages
22.11
High
30.00
About MARA
MARA Holdings, Inc. is a digital infrastructure company. The Company focused on expanding its infrastructure capacity into adjacent workloads, including artificial intelligence (AI), high-performance computing (HPC) and critical information technology (IT). The Company transforms excess energy into digital capital, balancing the grid and accelerating the deployment of critical infrastructure. The Company primarily leverages Bitcoin mining as its core business. The Company operates multiple Bitcoin mining sites that provide hosting services to institutional-scale crypto mining companies. Hosting services include colocation and managed services. Colocation services include providing mining companies with sheltered data center space, electrical power, cooling, and internet connectivity. It operates across four continents and 19 data centers in North America, the Middle East, Europe, and Latin America, with approximately 1.9 gigawatts (GW) of total capacity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
US Stocks Under Pressure as Oil Prices Surge
- Market Pressure Intensifies: The S&P 500 index fell 0.14%, the Dow Jones Industrial Average dropped 0.27%, and the Nasdaq 100 index decreased 0.34% as crude oil prices surged over 2% following fresh US attacks on Iran, indicating heightened sensitivity to geopolitical risks.
- Economic Data Impact: The April core PCE price index rose 3.3% year-on-year, meeting expectations, but the unexpected 1.1% decline in April capital goods new orders signals potential economic slowdown, which may heighten investor concerns about future growth.
- Rising Unemployment Claims: Initial jobless claims in the US increased by 5,000 to 215,000, exceeding expectations of 211,000, reflecting a weakening labor market that could prompt the Fed to adopt a more cautious stance in future policy decisions.
- Earnings Season Insights: As of now, 83% of the 479 S&P 500 companies that reported earnings exceeded expectations, with Q1 earnings projected to rise 12% year-on-year; however, excluding the tech sector, growth is only expected at 3%, highlighting a divergence in overall profitability.
See More
Small-Cap Tech Stocks Surge Amid AI Frenzy
- Small-Cap Tech Recovery: U.S. small-cap technology stocks are rebounding significantly after years of underperformance, driven by the AI frenzy that has led investors to focus on smaller companies with strong potential, as evidenced by $49.7 million inflows into the Invesco S&P SmallCap Information Tech ETF this year, ending four consecutive years of outflows.
- Earnings Growth Expectations: Small-cap semiconductor companies are among the top performers, expected to see nearly 40% profit growth in Q2, reflecting massive capital spending on data centers and AI-related infrastructure boosting chip demand, although the broader small-cap tech sector is projected to grow earnings by only 7%.
- Market Performance Disparity: The S&P 600 small-cap tech index has surged nearly 54% this year, compared to a 20.1% rise in the S&P 500 tech index, marking the widest gap since 1995, indicating a relative advantage for small-cap stocks amid the AI investment boom.
- Bubble Risk Warning: Despite the strong performance of small-cap tech stocks, analysts caution that speculative trading may be driving prices higher, and rising global government bond yields could diminish the appeal of smaller tech companies due to their higher sensitivity to economic fluctuations.
See More
Mixed US Stock Close as Oil Prices Volatile Amid Geopolitical Tensions
- Mixed Market Performance: The S&P 500 index fell by 0.07%, while the Dow Jones Industrial Average rose by 0.32%, and the Nasdaq 100 index decreased by 0.45%, indicating a divergence in market performance amid oil price volatility and geopolitical tensions.
- Oil Price Volatility: Crude oil prices surged to a three-week high on Monday due to Iran's comments on US demands being 'excessive and unrealistic', but prices fell sharply later when President Trump canceled a planned strike on Iran, highlighting the direct impact of geopolitical events on the market.
- Supportive Economic Data: The May NAHB housing market index rose by 3 to 37, exceeding expectations, which indicates resilience in the housing market and may provide some support for stocks.
- Weak Chinese Economic Indicators: China's April industrial production rose by 4.1% year-on-year, below the expected 6.0%, with retail sales and new home prices also underperforming, reflecting potential risks to global growth prospects.
See More
MARA Holdings Completes Bond Amendment Consent Solicitation
- Consent Solicitation Outcome: MARA Holdings' wholly-owned subsidiary successfully obtained consents from over 50% of bondholders before the May 15, 2026 expiration, approving amendments to the 8.750% Senior Secured Notes, ensuring smooth future transactions.
- Amendment Activation: The amendments will exempt MARA from making a 'Change of Control' tender offer post-transaction, alleviating additional financial burdens on bondholders and enhancing the company's financial flexibility.
- Transaction Timeline: The transaction is expected to close in the second half of 2026, which, if successful, will further solidify MARA's market position in digital energy and drive the development of its high-performance computing infrastructure.
- Fee Structure: Each consenting bondholder will receive a consent fee of $2.50 per $1,000 of bonds held, with no fee payable if the transaction does not close, ensuring financial security for the company until the deal is finalized.
See More
Mara Holdings Misses Q1 Earnings Expectations Amid Crypto Decline
- Revenue Decline: Mara Holdings reported an 18% year-over-year revenue drop to $174.6 million in Q1, missing analyst expectations of nearly $182 million, highlighting the company's vulnerability amid a struggling cryptocurrency market.
- Widening Net Loss: The company's net loss under GAAP deepened to $1.3 billion ($3.31 per share), significantly higher than the $533 million loss in Q1 2025, primarily due to a substantial non-cash write-down of digital assets.
- Bitcoin Holdings Decrease: Mara Holdings experienced a 26% reduction in Bitcoin holdings, and despite progress in its data center operations, investor enthusiasm waned as the price of Bitcoin fell, impacting the value of its assets.
- Negative Market Reaction: The stock price fell by 5% to $12.72, reflecting diminished investor confidence in the company's ability to transition into a successful data center operator, although its diversification efforts are seen as more advanced than some peers.
See More
MARA Holdings Acquires Long Ridge Energy Asset Amid Market Volatility
- Market Reaction: MARA Holdings' stock fell about 6% in the last 24 hours, reflecting short-term concerns despite investors digesting the latest AI infrastructure move tied to the Long Ridge acquisition, indicating volatility in market sentiment.
- Acquisition Details: The company is acquiring a 505 MW combined-cycle gas asset with an annualized EBITDA of approximately $144 million, covering 1,600 acres and with the potential to expand beyond 1 GW, marking a roughly 65% increase in owned power capacity.
- Strategic Shift: MARA argues that AI demand does not wait for the 7-10 years required for new builds, as the Long Ridge Energy campus provides immediate access to power, fiber, gas, and grid connectivity at a cost below the estimated $1.6 to $2.7 billion replacement cost, showcasing its strategic positioning in the energy market.
- Strong Financial Position: With over $2.5 billion in net liquidity, including Bitcoin holdings and cash, MARA is repositioning from pure Bitcoin mining towards energy-backed AI and HPC infrastructure, aiming for faster monetization of connected power.
See More
US Stocks Under Pressure as Oil Prices Surge
- Market Pressure Intensifies: The S&P 500 index fell 0.14%, the Dow Jones Industrial Average dropped 0.27%, and the Nasdaq 100 index decreased 0.34% as crude oil prices surged over 2% following fresh US attacks on Iran, indicating heightened sensitivity to geopolitical risks.
- Economic Data Impact: The April core PCE price index rose 3.3% year-on-year, meeting expectations, but the unexpected 1.1% decline in April capital goods new orders signals potential economic slowdown, which may heighten investor concerns about future growth.
- Rising Unemployment Claims: Initial jobless claims in the US increased by 5,000 to 215,000, exceeding expectations of 211,000, reflecting a weakening labor market that could prompt the Fed to adopt a more cautious stance in future policy decisions.
- Earnings Season Insights: As of now, 83% of the 479 S&P 500 companies that reported earnings exceeded expectations, with Q1 earnings projected to rise 12% year-on-year; however, excluding the tech sector, growth is only expected at 3%, highlighting a divergence in overall profitability.
See More
Small-Cap Tech Stocks Surge Amid AI Frenzy
- Small-Cap Tech Recovery: U.S. small-cap technology stocks are rebounding significantly after years of underperformance, driven by the AI frenzy that has led investors to focus on smaller companies with strong potential, as evidenced by $49.7 million inflows into the Invesco S&P SmallCap Information Tech ETF this year, ending four consecutive years of outflows.
- Earnings Growth Expectations: Small-cap semiconductor companies are among the top performers, expected to see nearly 40% profit growth in Q2, reflecting massive capital spending on data centers and AI-related infrastructure boosting chip demand, although the broader small-cap tech sector is projected to grow earnings by only 7%.
- Market Performance Disparity: The S&P 600 small-cap tech index has surged nearly 54% this year, compared to a 20.1% rise in the S&P 500 tech index, marking the widest gap since 1995, indicating a relative advantage for small-cap stocks amid the AI investment boom.
- Bubble Risk Warning: Despite the strong performance of small-cap tech stocks, analysts caution that speculative trading may be driving prices higher, and rising global government bond yields could diminish the appeal of smaller tech companies due to their higher sensitivity to economic fluctuations.
See More
Mixed US Stock Close as Oil Prices Volatile Amid Geopolitical Tensions
- Mixed Market Performance: The S&P 500 index fell by 0.07%, while the Dow Jones Industrial Average rose by 0.32%, and the Nasdaq 100 index decreased by 0.45%, indicating a divergence in market performance amid oil price volatility and geopolitical tensions.
- Oil Price Volatility: Crude oil prices surged to a three-week high on Monday due to Iran's comments on US demands being 'excessive and unrealistic', but prices fell sharply later when President Trump canceled a planned strike on Iran, highlighting the direct impact of geopolitical events on the market.
- Supportive Economic Data: The May NAHB housing market index rose by 3 to 37, exceeding expectations, which indicates resilience in the housing market and may provide some support for stocks.
- Weak Chinese Economic Indicators: China's April industrial production rose by 4.1% year-on-year, below the expected 6.0%, with retail sales and new home prices also underperforming, reflecting potential risks to global growth prospects.
See More
MARA Holdings Completes Bond Amendment Consent Solicitation
- Consent Solicitation Outcome: MARA Holdings' wholly-owned subsidiary successfully obtained consents from over 50% of bondholders before the May 15, 2026 expiration, approving amendments to the 8.750% Senior Secured Notes, ensuring smooth future transactions.
- Amendment Activation: The amendments will exempt MARA from making a 'Change of Control' tender offer post-transaction, alleviating additional financial burdens on bondholders and enhancing the company's financial flexibility.
- Transaction Timeline: The transaction is expected to close in the second half of 2026, which, if successful, will further solidify MARA's market position in digital energy and drive the development of its high-performance computing infrastructure.
- Fee Structure: Each consenting bondholder will receive a consent fee of $2.50 per $1,000 of bonds held, with no fee payable if the transaction does not close, ensuring financial security for the company until the deal is finalized.
See More
Mara Holdings Misses Q1 Earnings Expectations Amid Crypto Decline
- Revenue Decline: Mara Holdings reported an 18% year-over-year revenue drop to $174.6 million in Q1, missing analyst expectations of nearly $182 million, highlighting the company's vulnerability amid a struggling cryptocurrency market.
- Widening Net Loss: The company's net loss under GAAP deepened to $1.3 billion ($3.31 per share), significantly higher than the $533 million loss in Q1 2025, primarily due to a substantial non-cash write-down of digital assets.
- Bitcoin Holdings Decrease: Mara Holdings experienced a 26% reduction in Bitcoin holdings, and despite progress in its data center operations, investor enthusiasm waned as the price of Bitcoin fell, impacting the value of its assets.
- Negative Market Reaction: The stock price fell by 5% to $12.72, reflecting diminished investor confidence in the company's ability to transition into a successful data center operator, although its diversification efforts are seen as more advanced than some peers.
See More
MARA Holdings Acquires Long Ridge Energy Asset Amid Market Volatility
- Market Reaction: MARA Holdings' stock fell about 6% in the last 24 hours, reflecting short-term concerns despite investors digesting the latest AI infrastructure move tied to the Long Ridge acquisition, indicating volatility in market sentiment.
- Acquisition Details: The company is acquiring a 505 MW combined-cycle gas asset with an annualized EBITDA of approximately $144 million, covering 1,600 acres and with the potential to expand beyond 1 GW, marking a roughly 65% increase in owned power capacity.
- Strategic Shift: MARA argues that AI demand does not wait for the 7-10 years required for new builds, as the Long Ridge Energy campus provides immediate access to power, fiber, gas, and grid connectivity at a cost below the estimated $1.6 to $2.7 billion replacement cost, showcasing its strategic positioning in the energy market.
- Strong Financial Position: With over $2.5 billion in net liquidity, including Bitcoin holdings and cash, MARA is repositioning from pure Bitcoin mining towards energy-backed AI and HPC infrastructure, aiming for faster monetization of connected power.
See More
