11 Rapidly Expanding Small-Cap Stocks That May Benefit from the Fed's Upcoming Decision
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 15 2025
0mins
Should l Buy GOOG?
Source: MarketWatch
Small-cap vs. Large-cap Performance: Small-cap stocks have underperformed compared to large-cap stocks this year and over the past five years, indicating a notable trend in the market.
Impact of Federal Reserve Interest Rates: The expected cuts in Federal Reserve interest rates could benefit small-cap U.S. companies by lowering borrowing costs and supporting their domestic sales focus.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 309.370
Low
255.00
Averages
336.08
High
400.00
Current: 309.370
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Land Acquisition: St George Mining has entered into a binding agreement to acquire 166 hectares of industrial land for 14 million Brazilian reais (approximately A$3.8 million), laying the groundwork for its niobium-rare earths project in Brazil.
- Resource Potential Unlocking: The new land will allow the company to establish processing facilities outside the mining tenure, preventing sterilization of the orebody, which is expected to facilitate parallel advancements in resource upgrades and exploration efforts.
- Environmental Protection Measures: The company also acquired a separate 163-hectare conservation area aimed at offsetting environmental impacts and supporting operational licensing requirements, demonstrating its commitment to sustainable practices.
- Positive Market Outlook: With global niobium demand projected to grow at 6% annually, St George Mining is positioning itself to enter a tightly concentrated and strategically significant market, especially as the U.S. identifies niobium as a critical mineral.
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- Cloud Growth: Google Cloud achieved a remarkable 48% year-over-year growth in Q4, showcasing its strong performance in the cloud computing market and solidifying its position as a top choice, which is expected to attract more new business and drive future revenue growth.
- AWS Recovery: Amazon Web Services (AWS) reported a 24% revenue growth rate in Q4, marking the fastest pace in 13 quarters, indicating a rising demand for generative AI workloads and enhancing its competitive edge in the market.
- Surge in Capital Expenditures: Google anticipates capital expenditures of $175 billion to $185 billion by 2026, while Amazon expects $200 billion, reflecting both companies' commitment to future AI infrastructure despite market concerns about an AI bubble.
- Valuation Comparison: Although Amazon's valuation is relatively lower, both companies are at the top of their respective industries, with projected revenue growth rates for the next 12 months showing Google at 16%, slightly ahead of Amazon's 12%, giving Google a slight edge in investment attractiveness.
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- Global AI Leaders Gather: The India AI Impact Summit in New Delhi from February 19-20 will feature tech leaders like Sundar Pichai of Google and Sam Altman of OpenAI, showcasing India's growing influence in the global AI landscape.
- Trade Agreement Catalyst: The summit coincides with India and the U.S. working towards a new trade agreement, with Modi's government approving approximately $18 billion in semiconductor projects to establish a domestic supply chain, thereby enhancing India's technological prowess.
- AI Market Expansion: OpenAI and Anthropic are setting up operations in India targeting businesses, developers, and government clients, while Google and Meta are expanding data centers to cater to the rapidly growing AI market in the country.
- Nvidia's Market Potential: Despite CEO Jensen Huang's last-minute withdrawal from the summit due to unforeseen circumstances, Nvidia views India as a key growth market, particularly amid U.S. export restrictions on advanced chips to China.
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- Surging AI Revenue: Broadcom reported a 74% year-over-year increase in AI semiconductor revenue for the latest quarter, with projections indicating that first-quarter revenue will double to $8.2 billion, driven by strong demand for custom accelerators and AI Ethernet switches, significantly boosting overall performance.
- Record Backlog: The company's backlog for AI switches has surpassed $10 billion, reflecting robust market demand amid ongoing AI data center buildouts, which further solidifies Broadcom's position in the industry.
- Differentiated Product Offering: Broadcom has launched the industry's first Wi-Fi 8 access point and switch system, designed to enhance security and speed for enterprises utilizing AI, thereby increasing its competitive edge and attracting more customers.
- Unique Market Positioning: Broadcom's XPUs are custom chips tailored for specific purposes, differentiating them from Nvidia and AMD's general-purpose GPUs, allowing the company to carve out a niche in the competitive AI market and enhancing its strategic positioning for future growth.
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- Indirect Stock Holdings: By owning shares of Berkshire, investors can indirectly hold positions in five other stocks, including Apple, Alphabet (Google's parent), Amazon, Chevron, and Mastercard, thereby achieving broader market exposure.
- Strong Long-term Prospects: Berkshire's portfolio also includes companies like American Express, Coca-Cola, and Visa, which have solid long-term growth potential, enhancing its investment appeal.
- Management Stability: Although Warren Buffett is no longer CEO, he remains confident in the company's future and believes that under Greg Abel's leadership, Berkshire's prospects will improve, demonstrating the stability of its governance and potential for continued growth.
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- Market Performance Review: The S&P 500 has achieved double-digit gains for three consecutive years, reflecting the ongoing bull market that has attracted significant investment into growth stocks like AI and quantum computing, although overall market momentum has recently slowed.
- Interest Rate Policy Impact: Following the Fed's interest rate cuts that began in 2024, the recent decision to hold rates steady has heightened investor concerns over uncertainty, leading to diminished confidence in tech stocks, despite strong earnings reports from companies like Meta and Taiwan Semiconductor.
- Valuation Level Warning: The S&P 500's Shiller CAPE ratio has surpassed 39, a level only reached once before, just prior to the dot-com bubble burst, indicating that current market valuations are high and may signal potential future correction risks.
- Historical Trend Analysis: Historical data shows that the S&P 500 typically declines after reaching peak valuations, although such declines are not always long-lasting; investors should focus on a long-term strategy of holding quality stocks to navigate short-term market fluctuations.
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