The biggest company in the world is reporting earnings on Wednesday. And while NVDA’s print soaks up all the air in the room, small caps with real catalysts are going to be flying under the radar.
I have my eye on 3 of them.
NVDA week pulls every screen and every alert to one corner of the market. For the names I’m watching, that is exactly the condition I want.
These names get room to move before the crowd finds them.
NVDA has beaten earnings estimates basically every quarter for two years running. And in three of the last four reports, the stock dropped anyway.
Up 13.6% in May 2024, then down 7.6% in August, down 6.5% in November, and flat to down on the most recent print despite another beat.
Going into this print, NVDA has run from $200 to $230, roughly 15% in two weeks. The best NVDA trade already happened.
Could it have a huge move after earnings? Sure, anything can happen. But the risk/reward on that bet leaves a lot to be desired.
So while everyone is glued to Wednesday’s print, I’m looking elsewhere…
3 Small Caps To Watch
Wolfspeed Inc. New (NSDQ: WOLF)
Wolfspeed makes a special type of semiconductor called silicon carbide. Think of it like a more powerful, more efficient version of the chips that manage electricity inside data centers and electric vehicles.
There aren’t many companies in the world that can make these at scale, and the ones that can are suddenly very important to AI infrastructure.
The stock ran from the mid-$20s to $73 in a matter of weeks. It has since pulled back to around $70.
The pullback after a blowoff top is a classic pattern. But I want to see it hold the base before I size in.
POET Technologies Inc. (NSDQ: POET)
POET makes a component that sits inside the hardware connecting AI servers to each other at high speed. The more AI you run, the more data you need to move between machines, and moving that data requires optical technology.
POET just landed a $50 million order from a company called Lumilens to supply those components, with the potential to grow to $500 million over five years if the relationship scales. The stock ran 43% on May 14 when the deal was announced.
One thing worth knowing: as part of the deal, POET gave Lumilens the right to buy up to 22.9 million shares at $8.25, which only fully kicks in as Lumilens keeps buying.
Ondas Inc. (NSDQ: ONDS)
ONDS reported Q1 earnings on May 14 (and the numbers were blowout). Revenue came in at $50.1 million, up more than tenfold from the same quarter last year, and the company raised its full-year 2026 revenue target to at least $390 million.
Backlog sits at $457 million. This is an autonomous systems and counter-drone defense company now, not the small rail connectivity name it used to be.
The earnings numbers say this is a different company than it was a year ago. But the chart needs to confirm this breakout above $12.
How I’m Trading Them
WOLF: I want to see a reclaim and hold above $65 on volume. That tells me the base is holding and the momentum is still there. If it flushes below $58, I’m stepping back and waiting for a cleaner setup.
POET: $18 is the line. If it holds there with volume, I’m looking at re-entry. If it loses that level, I’m not chasing it down. I will wait for the next setup and let it prove itself again.
ONDS: I want a consolidation day first before I do anything. The earnings move was real, but I’m not chasing strength into a name that just ran that hard. I want to see it settle, hold a level, and give me something to trade against.
Now you have three names on your radar, a catalyst for each one, and a plan going into a week (when most traders are going to be staring at one chart).
This is how you should approach every big news week in the market.
Stay sharp,
Jack Kellogg
*Past performance does not indicate future results
