TechFlow reports, July 14, U.S. small and mid-cap stocks are shaking off years of sluggishness, ushering in the best returns in over 20 years, as investors begin shifting from high-growth tech giants to undervalued stocks benefiting from the AI investment boom. Year-to-date, the U.S. small-cap benchmark Russell 2000 index has risen 20%, poised to achieve its best performance since 2003, while S&P 500 blue-chip stocks have risen 10%, and the so-called "Magnificent Seven" tech stocks have gained less than 3%.
However, some analysts point out that the current rise in small and mid-cap stocks is largely driven by non-profitable components, with excessive optimism and bubbles still present, making sustainability questionable.




