Small Stocks Are On Fire — Especially These 10

• Ichor Holdings leads small-cap gains with a 79.4% year-to-date return, followed by Ultra Clean Holdings at 74.3% and Vicor at 52.2%, all benefiting from semiconductor and tech sector demand
• The State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) has outpaced the S&P 500 with an 8.5% gain versus 1% for large caps
• Lower interest rate expectations are driving the small-cap rally, with top performers concentrated in information technology, industrials, and healthcare sectors

Market Summary: Small-Cap Stocks Surge in 2026

Key Performance Metrics

Small-cap stocks are significantly outperforming the broader market in 2026. The State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) has gained 8.5% year-to-date, substantially ahead of the S&P 500's modest 1% gain. Ten stocks within the S&P Small Cap 600 index have surged 35% or more.

Top Performers

Ichor Holdings (ICHR) leads the pack with a 79.4% year-to-date gain, benefiting from continued strength in computer chip demand. The stock holds a Relative Strength (RS) Rating of 90. While analysts project a 5% profit decline in 2025, earnings are expected to explode 359% in 2026.

Ultra Clean Holdings (UCTT) follows with a 74.3% gain, also tied to the semiconductor sector.

Vicor (VICR), a power-component supplier for telecom and military applications, has jumped 52.2%. With an RS Rating of 98, the company's profit is forecast to decline 6% in 2026 after surging 1,444% in 2025.

Other notable performers include FormFactor (+45.2%), Neogen (+42.0%), TTM Technologies (+41.3%), Mercury Systems (+36.3%), Chemours (+36.0%), Organon (+35.8%), and Callaway Golf (+35.5%).

Market Implications

The small-cap rally is driven by optimism around lower interest rates, which historically benefit smaller companies. Information Technology dominates the top performers, with six of the ten leading stocks from this sector. Investors appear to be rotating into small-caps, betting that reduced borrowing costs will fuel sustained outperformance versus large-cap technology stocks.