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Special Report New Year, New Growth: 3 Stocks Under $2B Breaking Out in 2026Submitted by Jeffrey Neal Johnson. Published: 1/24/2026. 
Key Points - 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 other large technology conglomerates often dominate financial headlines, a quieter but significant shift is occurring in the small-cap sector. January 2026 has been a pivotal month for several companies valued under $2 billion as they move from long, capital-intensive research and development (R&D) phases into mass commercialization and revenue generation. For investors, small caps offer a different value proposition than blue-chip stocks. The risks and volatility are greater, but the upside can be substantial 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 via 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 performance in early 2026 demands attention. The company specializes in ultra-high-resolution sensors and subsea batteries, serving defense contractors and offshore energy clients that require equipment capable of withstanding deep-ocean pressure. The narrative for Kraken shifted on Jan. 13, 2026, when the company announced it had secured $35 million in new battery orders from three customers. To put that in context: the $35 million order exceeds Kraken’s entire Q3 2025 revenue of $31.3 million, signaling a significant acceleration in demand for its SeaPower technology. Why This Matters Subsea batteries aren't off-the-shelf components; they require specialized engineering to operate underwater without heavy pressure housings or bulky enclosures. Kraken’s ability to land this volume of orders suggests its technology is becoming a preferred standard for autonomous underwater vehicles (AUVs). Key Financial Metrics - Cash Position: ≈ C$127 million (about $91.7 million USD). This ample liquidity enables Kraken to fulfill large orders without issuing significant new equity or taking on expensive debt to purchase raw materials.
- Profitability: Adjusted EBITDA margins have expanded to 25%, indicating the company is retaining a meaningful portion of incremental revenue as profit.
With a market capitalization near $1.66 billion, winning contracts of this size validates Kraken’s business model. The company is transitioning from a speculative small-cap into a profitable, growing defense and offshore energy supplier aligned with global security and energy trends. Powering the Future: Enovix Passes Crucial Factory Test Enovix Corporation (NASDAQ: ENVX) represents an execution story. Enovix designs next-generation lithium-ion batteries using a 3D silicon-anode architecture. Put simply, Enovix’s design allows batteries to store significantly more energy than conventional cells used in today’s smartphones without increasing device size. For years the question was not whether the cells worked but whether Enovix could manufacture them at scale. January 2026 provided an answer. On Jan. 6, 2026, Enovix announced the successful completion of Site Acceptance Testing (SAT) for its High Volume Manufacturing (HVM) line in Malaysia. This milestone indicates the factory machinery meets technical specifications and is ready for mass production, substantially reducing the manufacturing scalability risk that has weighed on Enovix’s stock. The AI Connection The milestone is timely for the electronics industry. Smartphone makers are racing to embed artificial intelligence directly on devices, which substantially increases power demands and quickly drains standard batteries. Enovix’s high-density AI-1 batteries are engineered to meet that need. Risk Mitigation Factors - Liquidity Runway: The company holds roughly $648 million in cash, giving it a significant runway to scale factories and pursue profitability.
- Bear Case Rebuttal: Enovix has high short interest, suggesting many traders are skeptical. Successful factory execution, however, forces a reassessment of the bearish thesis and could drive upward momentum as yields and volumes improve.
A Strategic Turnaround: Aehr Test Systems Finds New Life Aehr Test Systems (NASDAQ: AEHR) is executing a strategic turnaround. Historically, Aehr’s stock performance tracked closely with the electric vehicle (EV) market. The company provides burn-in testing equipment that stresses chips with heat and electricity to detect defects before they are installed in vehicles. As the EV market cooled in 2025, Aehr’s revenue weakened. Since then the company has pivoted toward a higher-growth market: artificial intelligence. In its Q2 Fiscal 2026 earnings report released on Jan. 8, the picture was mixed: trailing revenue declined because of the EV slowdown, but forward-looking indicators improved sharply. Over the past few weeks Aehr reported $14.2 million in new bookings, driven mainly by customers seeking burn-in testing for AI processors and silicon photonics. Why AI Needs Burn-In AI processors are expensive to manufacture, and failures in deployed data-center servers are costly to replace. Chipmakers are willing to pay a premium for Aehr’s equipment to ensure chips are fully vetted before shipment. Why The Pivot Matters - New Revenue Streams: Orders from major AI chip manufacturers diversify Aehr’s customer base and expose it to a supply chain expected to grow significantly through 2027.
- Valuation Context: With a market capitalization around $900 million, the market appears to be pricing Aehr for a recovery.
Investors are focused on the forward outlook. The recent surge in bookings suggests the cyclical trough may be behind the company, positioning Aehr as a critical supplier to the expanding AI hardware ecosystem. Balancing Risk and Reward in 2026 These three companies illustrate that some of the most compelling growth stories can be found outside the mega-cap indices. Kraken Robotics offers immediate earnings visibility and balance-sheet strength as it scales subsea battery sales. Enovix has materially de-risked its manufacturing roadmap, positioning itself to supply high-density batteries for the AI smartphone era. Aehr Test Systems has navigated a sector downturn and repositioned as a supplier to the growing AI chip market. Investing in firms with market caps under $2 billion carries inherent volatility. Still, the operational milestones achieved in January 2026 provide a data-driven basis for cautious optimism. These companies are moving beyond promise toward commercial execution, making them stocks worth watching in the quarters ahead.
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