$SPY $QQQX $KOPN $MX $TRT
My take with recent volatility.
Every time the market pulls back, small-cap stocks tend to get hit the hardest. In many cases, the price action doesn’t seem to reflect the fundamentals—especially for companies trading at low multiples despite strong growth and significant upside potential from AI-driven transformation stories.
Periods of heightened volatility often shake out weaker hands. The reality is that trading isn’t for everyone. That’s why diversification, position sizing, and scaling into opportunities are so important.
I, Having navigated countless market corrections over the years, my approach has remained remarkably consistent:
Buy, Accumulate, Stay focused on the thesis. If you can buy at 10 and stock goes down to 5, without fundamental and growth changes, certainly the conviction should remain the same and therefore 5$, if financially able and with extra fund, should add more.
I understand that not everyone has unlimited capital. One strategy I often use is rotating out of my weakest convictions and reallocating into the companies with the highest potential—ranking positions from strongest to weakest conviction.
That’s easier said than done, especially when many of these companies are racing to capitalize on the AI opportunity.
Pivot-to-AI plays:
* KOPN
* MX
Growth plays:
* TRT
* AMPG
* POET
In my view, TRT and AMPG remain attractively valued, trading at roughly 2x multiples despite their growth profiles.
Other stocks under
$20 worth considering:
CPSH — Advanced materials manufacturer supplying lightweight, high-performance composite solutions used in aerospace, defense, satellites, and next-generation space applications. Benefits from growing demand for space and defense infrastructure.
* ODD — Consumer technology and beauty-tech company leveraging data analytics, AI-driven personalization, and digital commerce to improve customer engagement and product recommendations.
* EOSE — Energy storage company focused on zinc-based battery systems for grid-scale storage. Positioned to benefit from renewable energy expansion, AI data center power demand, and grid modernization.
* TE — Renewable energy and solar-related infrastructure play with exposure to electrification trends, power generation, and the growing energy requirements of AI-driven computing.
* KEEL — AI infrastructure company focused on supporting the physical backbone of artificial intelligence, including computing capacity, networking, and data center-related opportunities.
* HIVE — Digital infrastructure operator evolving from crypto mining into AI and high-performance computing (HPC). Expanding GPU capacity to serve AI training and inference workloads.
* CLSK — Energy-efficient digital infrastructure and computing company with growing exposure to AI-related power and computing demand. Also benefits from trends in distributed energy and data processing.
* LPTH — Optical technology company specializing in laser-based measurement and inspection systems. Its precision optics and photonics solutions serve semiconductor, industrial automation, and advanced manufacturing markets.
* CRSR — Hardware and gaming technology company with increasing exposure to AI-enabled PCs, creator workstations, high-performance computing accessories, and streaming ecosystems.
* PDYN — Robotics and autonomous systems company focused on AI-powered automation, unmanned systems, and machine intelligence applications across commercial and government sectors.
* INFQ — Emerging quantum technology company developing solutions that could accelerate next-generation computing, optimization, cybersecurity, and AI workloads.
* LWLG — Photonics innovator developing electro-optic polymer technology designed to dramatically improve speed, power efficiency, and bandwidth in optical networking. Potential beneficiary of AI data center expansion where optical interconnects are becoming critical.
* RDW — Space infrastructure company providing satellite components, mission systems, in-space manufacturing, and national security space solutions. Positioned to benefit from the commercialization of space and government space spending.
* MNTS — Space technology company focused on satellite transportation, orbital logistics, and in-space services. Its technologies aim to support the growing satellite economy and future space infrastructure.
* HIMX — Semiconductor company specializing in display drivers, imaging processors, computer vision, and edge AI chips. Well positioned for AI-enabled devices, smart vision systems, AR/VR, and machine vision applications.
Themes
AI Infrastructure & Computing
* KEEL
* HIVE
* CLSK
* CRSR
* HIMX
* INFQ
Optics / Photonics
* LWLG
* LPTH
* HIMX
Space & Aerospace
* CPSH
* RDW
* MNTS
Energy & Power
* EOSE
* TE
Many investors are increasingly focused on the intersection of these themes because AI growth ultimately depends on three things: computing power, optical connectivity, and energy availability. Companies operating in those areas may benefit if AI adoption continues to accelerate over the coming years.
As always, do your own research and invest according to your risk tolerance. Market pullbacks can be uncomfortable, but they often create opportunities for those focused on long-term execution and fundamentals.
Goodluck to all of Us!
“The seeds of the next rally are often planted during the darkest days of a correction.”
