7 Small Caps Poised for Big Gains in 2025

If you’re wondering about the growth potential in small-cap stocks, consider the performance of Rigetti Computing Inc. (NASDAQ: RGTI). RGTI is up more than 500% in the last 12 months, and that includes a 46% drop so far in 2025. 

Rigetti is a leading name in the emerging quantum computing space. While some companies in this space are still in the development stage, Rigetti has operated quantum computers over the cloud since 2017 and has developed the first multichip quantum processor.  

That said, the company only generated about $15 million in revenue in 2024 and is years away from being profitable. But that’s typical in early-stage, high-tech industries. Profitability requires larger buys from larger customers. That's why, prior to the start of the stock’s surge in late 2024, Rigetti was trading for less than $2 per share.  RGTI stock is still down from its all-time closing high of $19.91 on January 2, 2025.

The six analysts that cover Rigetti—fairly substantial coverage for a company of its size—have given RGTI a consensus price target of $14.50, signaling that Wall Street sees enough substance here to stay engaged.

Super Micro Computer Inc. (NASDAQ: SMCI) builds high-performance AI server solutions—critical infrastructure as companies race to meet AI’s power demands. With proven products and ongoing R&D, SMCI is positioned to adapt and lead in a fast-evolving space.

SMCI stock has been volatile in the last nine months. The company was embroiled in allegations of wrongful accounting practices that threatened its NASDAQ listing. But Super Micro has put those issues behind it. The stock is up 17% after it proved to investors that it had met NASDAQ requirements—and much of that lift came from large institutions.

One concern weighing on technology stocks is that the AI bubble may be leaking air. But analysts remain bullish, with 18 of them assigning a consensus price target of $53.

Food inflation continues to take a bite out of consumer’s budgets.

That's why it may surprise you to hear that Sprouts Farmers Market Inc. (NASDAQ: SFM) is up 23% this year. And if you pull back over its last 12 months, SFM stock is up more than 145%.  

Sprouts specializes in wholesome, innovative products made with “lifestyle-friendly ingredients,” including organic, plant-based and gluten-free—a perfect fit for consumers who have dietary requirements or are simply looking for support in a healthy lifestyle.  

And while the company imports internationally, it emphasizes locally produced food, which should mitigate any tariff impact. Analysts are expecting double-digit earnings growth in 2025, which is likely to exceed many companies.  

Sprouts operates over 440 stores in 24 states. Over the past quarter, the company generated comparable-store sales growth between 10% and 11%.  

The space sector is loaded with intriguing stocks, many of which exist in the small-cap sector. But investors wanting to find companies that may rocket higher (pun intended) in the latter half of 2025 should watch AST SpaceMobile Inc. (NASDAQ: ASTS).  

AST SpaceMobile is leading the way in developing and providing access to a space-based cellular broadband network for smartphones in the United States. The company sent five satellites into orbit in September 2024, all of which are now fully operational.

While AST SpaceMobile faces significant competition in the United States, it has a definitive commercial agreement with Vodafone through 2034 that provides a framework for SpaceMobile service in 20+ countries across Europe and Africa. 

ASTS was up a whopping 987% in the 12 months, and analysts are forecasting a 91% upside in the stock in the next 12 months.  

Archer Aviation Inc. (NYSE: ACHR) is another Russell 2000 stock that’s getting ready to take off in 2025.

The company is one of the leaders in the emerging electric vertical take-off and landing (eVTOL) vehicles. Its prototype, Midnight eVTOL, is moving closer to FTA approval and has several partnerships lined up when the milestone is reached. Flying cars are becoming a reality.  

A recent deal with Palantir Technologies Inc. (NASDAQ: PLTR) aims to streamline and scale production efficiently—positioning Archer for long-term growth.

That’s why, despite heavy selling pressure that correlates with investor uncertainty about stocks in general, institutional investors are loading up on ACHR stock. And the stock’s performance is reflecting that. Archer stock has found support at its December 2024 levels, and analysts see up to 60% upside from here.

The Russell 2000 is home to many small-cap biopharmaceutical companies. Many of these, like Viking Therapeutics Inc. (NASDAQ: VKTX) are still in the clinical stage—meaning the companies don’t have drugs that are commercially available. However, as risk-tolerant investors will tell you, picking the winners among these companies is when you can reap the biggest gains.  

And that may be the case with Viking. Its lead candidate, VK2809, is in Phase 2b trials for NASH. But what truly turned heads in late 2024 was Viking’s promising GLP-1 drug, which the company is developing in both injectable and oral forms—a potential game-changer in the weight-loss drug market.

VKTX stock is down 66% year-over-year as investors grow impatient with the clinical trial timeline. Still, for those with a long-term view, the upside from a successful GLP-1 approval could be significant.

If fund investing is more your style, the iShares Russell 2000 ETF (NYSEARCA: IWM) is a good way to get exposure to small-cap stocks without the risk that may come from individual stocks. Over 93% of the fund’s holdings are U.S.-based companies, many with domestic supply chains—making it potentially less vulnerable to tariff-related disruptions.   

The fund is down 9.4% year-to-date, slightly outperforming the broader index. But over the past five years, IWM has shown a steady upward trend. With a low expense ratio of just 0.19%, it’s a cost-effective way to tap into small-cap growth potential.