Small-cap stocks (usually firms with a market capitalization of $300 million to $2 billion) present explosive return potential to investors with a taste for volatility. Big companies grab the spotlight, but smaller creative businesses often increase profits by shaking up niche or emerging markets. 645m6r
As the economy stabilizes by 2025, these rapidly growing companies may outperform others. Joel Lim, who is a financial analyst for Becoin.net, points out two small-cap stocks that could increase a lot this year.
In 2025, small-cap stocks have an unmatched potential to grow because they can adapt to new market trends and scale up.
Butterfly Network is changing medical imaging. Their handheld ultrasound devices utilize AI, disrupting an industry worth over $50 billion.
Fluence Energy plays a pivotal role in the global surge in energy storage. They team up with big utility companies to update power grids.
Tech and AI stocks receive a lot of attention, but small-cap companies in less-noticed areas, such as health tech and clean energy, are gaining ground. These companies focus on specific areas, create new products, and can grow fast. This makes them ideal for investors seeking substantial returns. The small-cap index started to bounce back in early 2025, so now’s the time to jump in before everyone else notices.
Butterfly Network (BFLY) 6a635p
Butterfly Network is a health tech company that utilizes AI to develop portable, smartphone-based ultrasound devices. Its flagship product, the Butterfly iQ+, is a handheld substitute for traditional machines costing over $ 100,000, making it affordable to clinics, ambulances, and rural doctors.
This device is now within reach for clinics, ambulances, and even healthcare providers in rural areas. The company taps into a global market worth $50 billion by making imaging more available. The growth of telehealth is speeding up the adoption of this technology.
Recent financials reflect explosive momentum. Q1 2025 revenue jumped 85% year-on-year to $22.4 million, fueled by contracts with major health systems like the U.S. Department of Veterans Affairs. Gross margins reached 62%, a signal of scalable production. Perhaps most notably, its AI-powered software platform, which automatically reads through scans, is now FDA-cleared to analyze the lungs and liver, unlocking streams of subscription-based revenues.
Joel Lim says: “Butterfly isn’t just selling hardware; it’s building an AI-powered diagnostics ecosystem. With 150+ patents and telehealth tailwinds, this small-cap could 5x by 2025.”
Fluence Energy (FLNC) 4mce
Fluence Energy, a t venture between Siemens and AES, creates storage modules for customers transitioning to renewables. Its solar- and wind-powered grid-scale batteries provide stabilization after the retirement of fossil plants. The demand for such solutions is exploding: global energy storage installations are expected to be 10 times greater by 2030 (BloombergNEF), and Fluence is projected to capture a 20% market share.
Strategic contracts are accelerating expansion. Recent deals include a 560 MW project in Australia and a 300 MW network in California. On the fiscal side, revenues in Q1 rose 70% YoY to $363 million, while the backlog hit $3.6 billion. The company expects to turn a profit by late 2025; however, Fluence is utilizing partnerships with industry heavyweights, such as the Qatar Investment Authority, to expand in Europe and Asia.
Joel Lim says: “Fluence solves the renewables’ Achilles’ heel: intermittency. As grid failures make headlines, their tech becomes indispensable. This is a pure-play on the $1.2T energy transition.”
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