Thanks for signing up for DividendStocks.com! It's the daily newsletter built for dividend and income investors. Before we can begin sending your daily updates, there’s one quick step left. Please confirm your subscription using the link below so our emails reach your inbox. Click Here to Confirm Your Subscription to DividendStocks.com Here’s a small glimpse of what you’ll get access to: Dividend Stock Ideas — Each newsletter features dividend stocks with high yields, sustainable payouts, and strong growth potential. Ex-Dividend Stocks — Want to capture upcoming dividend payouts? Find out which stocks are going ex-dividend this week. Market News and Events — Stay in the loop on the latest developments impacting popular dividend names like AT&T, Exxon Mobil, IBM, Procter & Gamble, and Verizon. Bonus: As a thank-you for confirming, you’ll also receive a free PDF copy of Automatic Income, our popular guide to building wealth through dividend investing. Let’s get your dividend journey started! Discover Top Income-Generating Stocks Here See you in your inbox soon,
The DividendStocks.com Team P.S. Don’t miss out click here to verify your subscription and secure your daily dividend insights and your free investing guide!
Thursday's Bonus Article New Year, New Growth: 3 Stocks Under $2B Breaking Out in 2026By Jeffrey Neal Johnson. Posted: 1/24/2026. 
Key Takeaways - Kraken Robotics has secured massive new orders for its subsea battery technology, validating its position as a leader in marine defense systems.
- Enovix Corporation completed critical testing of its high-volume manufacturing line to enable mass-commercial production scalability.
- Aehr Test Systems is pivoting its business model to capture the growing demand for artificial intelligence processor reliability and burn-in testing.
While the Magnificent Seven and massive technology conglomerates often dominate financial headlines, a quieter but equally significant shift is occurring in the small-cap sector. January 2026 has become a pivotal month for several companies with market caps under $2 billion that are moving from long, capital-intensive research and development (R&D) phases into commercial production and recurring revenue. Compared with blue-chip stocks, small caps offer a different value proposition: higher risk and greater volatility, but also the potential for outsized returns when a company successfully transitions from concept to execution. Jerome Powell says gold is not money. The Fed says inflation is under control and the dollar is strong. But look at what they do. Central banks bought more gold last year than any time since 1967. China dumped $100 billion in U.S. debt, then bought gold. Poland, Hungary, Singapore, and Turkey are all loading up. In 2022, the U.S. froze Russia's money and showed the world that assets can be seized. Now major nations want out. There's only one asset no one can freeze: gold. Get the name and ticker of one stock positioned for this shift. Three companies in particular have recently validated their business models through major contract wins, manufacturing milestones, or strategic pivots. Those operational shifts create a compelling risk-reward profile for investors seeking opportunities outside the major indices. Deep Sea, High Growth: Kraken’s $35M Battery Breakthrough Kraken Robotics (OTCMKTS: KRKNF) often flies under the radar because it focuses on complex marine technology, but its early-2026 results demand attention. The company specializes in ultra-high-resolution sensors and subsea batteries for defense contractors and offshore energy clients that require equipment capable of withstanding the crushing pressure of the deep ocean. The narrative for Kraken shifted on Jan. 13, 2026, when the company announced $35 million in new SeaPower battery orders from three customers. To put that in perspective, this single announcement exceeds Kraken’s entire Q3 2025 revenue of $31.3 million, signaling a significant acceleration in demand for its technology. Why This Matters Subsea batteries are not standard, off-the-shelf components. They require specialized engineering to operate underwater without heavy pressure housings. Securing a large volume of orders suggests Kraken’s SeaPower technology is emerging as a preferred standard for autonomous underwater vehicles (AUVs). Key Financial Metrics - Cash Position: ~C$127 million (about $91.7 million USD). This strong cash balance should allow Kraken to fulfill large orders without issuing more stock or taking on expensive debt.
- Profitability: Adjusted EBITDA margins have expanded to 25%, indicating the company retains a meaningful share of revenue as profits as sales grow.
With a market capitalization of roughly $1.66 billion, landing contracts of this magnitude validates Kraken’s business model. The company is transitioning from speculative status to a profitable, growing defense and offshore-energy supplier. Powering the Future: Enovix Passes Crucial Factory Test Enovix Corporation (NASDAQ: ENVX) is an execution story. The company designs next-generation lithium-ion batteries using a 3D silicon anode architecture that can store significantly more energy than conventional batteries without increasing device size. For years the question was not whether Enovix’s batteries worked, but whether the company could manufacture them at scale. On Jan. 6, 2026, Enovix completed Site Acceptance Testing (SAT) for its High Volume Manufacturing (HVM) line in Malaysia. That milestone indicates the factory machinery meets technical specifications and is ready for mass production, addressing the main risk that has weighed on Enovix’s stock. The AI Connection The timing matters. Smartphone manufacturers are racing to run artificial intelligence models directly on devices, which demands far more power and quickly drains standard batteries. Enovix’s high-density AI-1 batteries are designed to meet that need. Risk Mitigation Factors - Liquidity Runway: The company holds roughly $648 million in cash, providing a long runway while factories ramp up.
- Bear Case Rebuttal: A high level of short interest signals bearish sentiment, but successful factory execution could force a market re-evaluation and create upward price momentum as yields improve.
A Strategic Turnaround: Aehr Test Systems Finds New Life Aehr Test Systems (NASDAQ: AEHR) is executing a textbook turnaround. Historically tied to the electric vehicle market, the company provides equipment for burn-in testing, a process that stresses chips with heat and electricity to reveal defects before they are installed in vehicles. As EV demand cooled in 2025, Aehr’s revenue slipped. Rather than stay dependent on a single end market, Aehr pivoted to a higher-growth area: artificial intelligence. Its Q2 Fiscal 2026 earnings report, released Jan. 8, shows a tale of two timelines: trailing revenue fell with the EV market, but forward-looking indicators improved markedly. Over the past few weeks the company reported $14.2 million in new bookings, driven primarily by customers seeking burn-in testing for AI processors and silicon photonics. Why AI Needs Burn-In AI processors are expensive to produce. If a chip fails after installation in a large data-center server, replacement is costly. Chipmakers are therefore willing to pay a premium for Aehr’s equipment to ensure chips ship defect-free. Why The Pivot Matters - New Revenue Streams: Orders from major AI chip manufacturers diversify Aehr’s customer base and position it in a supply chain expected to grow significantly through 2027.
- Valuation Context: With a market capitalization around $900 million, the market appears to be pricing the company for recovery.
Investors are focused on the future. The surge in bookings suggests the worst of the cycle may be behind Aehr, and the company is now aligned as a critical supplier to the expanding AI hardware market. Balancing Risk and Reward in 2026 These three companies demonstrate that some of the most attractive growth stories can be found outside the mega-cap indices. Kraken Robotics offers immediate revenue visibility through defense contracts and a strong cash position to support large orders. Enovix has materially de-risked manufacturing and is positioned to supply higher-density batteries for the AI-enabled smartphone era. Aehr Test Systems has shifted from a slowing EV market to become a key player in AI chip testing. Investing in companies with market caps under $2 billion carries inherent volatility, but the operational milestones achieved in January 2026 provide a data-driven basis for cautious optimism. These firms are moving beyond promising concepts and executing on commercial potential, making them stocks worth watching in the quarters ahead.
| 
