Multibagger Selection: Muse Spark 1.1's picks
Muse Spark 1.1 picked INOD, UPST, SVRA, BASE, RGTI with a twelve-month thesis, measured against SPY at each checkpoint.
| Experiment | Multibagger Selection |
|---|---|
| Model | Muse Spark 1.1 |
| Prompt version | multibagger-selection-v1 |
| Asked | |
| Horizon | 12-month |
| Benchmark | SPY |
| Status | Being measured |
The picks
| Rank | Symbol | Return | Confidence | vs benchmark | Called right |
|---|---|---|---|---|---|
| 1 | INOD | — | 78% | — | — |
| 2 | UPST | — | 70% | — | — |
| 3 | SVRA | — | 62% | — | — |
| 4 | BASE | — | 65% | — | — |
| 5 | RGTI | — | 55% | — | — |
Checkpoints
| Checkpoint | Portfolio return | Return vs SPY | Best peak multiple | Picks reaching 2x |
|---|---|---|---|---|
| 1 week | -8.52% | -7.60% | 1.05x | 0 |
The model's market view
Small and mid-cap environment on Oct 28 2026 is bifurcated: AI infrastructure data services and AI lending are showing profitability inflections after a valuation reset, while orphan biotech with near-term PDUFA dates offers binary but time-bound upside, and quantum computing benefits from $100M-scale US government funding under CHIPS. Liquidity is concentrated in names with >$5M daily dollar volume, allowing 3x scenarios to be driven by operating leverage rather than multiple expansion alone.
Why each pick
INOD
AI data engineering pure-play benefiting from LLM pre-training and evaluation demand. 12 consecutive quarters of YoY revenue growth, Q2 2026 revenue $92.1M up 58% YoY, adjusted gross margin 49% up from 43% YoY, adjusted EBITDA $25.4M up 92% YoY, EPS 41c beating consensus 21c. Guidance reiterated at least 40% revenue growth for 2026, with several large programs excluded from guidance and customer concentration improving from 56% to 37% for largest customer. Management executed $100M buyback buying 2.8M shares at $35.26 average in Q2.
UPST
Cloud-based AI lending marketplace returned to GAAP profitability in Q2 2026 after rate-hike cycle pressure. Q2 2026 revenue $364.7M up 41.7% YoY beating consensus $362M, originations $4.2B across 558k loans up 50% YoY, net income ~$17M up 195% YoY with 5% net margin, contribution profit at all-time high. Balance sheet risk falling to 5.9% of unpaid principal on balance sheet. Trading at $23.7 near 52-week low $22.21 with short interest 29.85% (28.57M shares) creating squeeze potential if profitability sustains.
SVRA
Pre-revenue rare respiratory biotech with single asset MOLBREEVI (molgramostim inhalation) for autoimmune pulmonary alveolar proteinosis (aPAP), ultra-rare disease with 2,000-9,000 US patients and zero FDA-approved therapies. BLA under Priority Review, PDUFA target Nov 22 2026 after 3-month major amendment extension from Aug 22 2026. Market cap $0.91B vs analyst projection $400M 2030 sales for potential $2B+ US market. Cash ~$173M mid-year plus recent $140M raise provides runway into launch.
BASE
Cloud database platform provider with Capella DBaaS driving modernization. Fiscal Q2 2026 revenue $57.6M +12% YoY beating estimates, subscription revenue $55.4M +12% YoY, ARR $260.5M +22% YoY, RPO +25% YoY, net new Capella ARR doubled sequentially in prior quarters per investor relations, Capella now >1/3 of customers. Market cap $1.31B implies EV/ARR ~5x for 22% ARR grower with AI workload tailwind and 【entity-AWS¦canonical_name=AWS】/Google alliances. Path to profitability via high gross margins typical for infrastructure software.
RGTI
Full-stack superconducting quantum computing with 164 employees and Quantum Cloud Services. Quarterly revenue never cleared $5.2M, but strategic shift to government funding de-risks R&D. Definitive agreement Sep 8 2026 with US Department of Commerce for $100M award to accelerate superconducting quantum R&D under CHIPS R&D Office, part of $2.013B LOI package including 【entity-IBM¦canonical_name=IBM】 $1B and others. Also $5.8M Air Force deal and 9-qubit Novera system for hybrid testbed operational target 2027, plus 108-qubit chiplet architecture progress and 99.5% fidelity claim. Cash ~$541M provides runway.
Other models on the same run
| Model | Picks |
|---|---|
| Perplexity | LIFE, DAVE, PGY, MAZE, FOUR |
| Gemini 3.6 Flash High | AEHR, SOUN, SKYT, MGNI, SERV |
| Claude Sonnet 5.5 | AEHR, FCEL, ETON, NVTS, FSLY |
| GPT-6 | PGY, ARDX, INOD, FLNC, BKSY |
| DeepSeek | AQST, CRMD, MLYS, IMNM, ACHR |
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