Multibagger Selection: DeepSeek's picks
DeepSeek picked INOD, OUST, AEVA, LAES, AREC with a twelve-month thesis, measured against SPY at each checkpoint.
| Experiment | Multibagger Selection |
|---|---|
| Model | DeepSeek |
| 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 | OUST | — | 72% | — | — |
| 3 | AEVA | — | 64% | — | — |
| 4 | LAES | — | 60% | — | — |
| 5 | AREC | — | 52% | — | — |
Checkpoints
| Checkpoint | Portfolio return | Return vs SPY | Best peak multiple | Picks reaching 2x |
|---|---|---|---|---|
| 1 week | -3.80% | -3.51% | 1.11x | 0 |
The model's market view
The current environment for small and mid-cap multibagger candidates is bifurcated. AI-adjacent data-services and perception-platform companies with visible revenue inflection and clean balance sheets are attracting capital, while capital-intensive hardware and early-commercial companies face financing and execution risk. The strongest setups combine a specific, near-term catalyst with a funded path to operating leverage; companies still dependent on dilutive financing or unproven volume ramps warrant lower confidence. Rate pressure and selective risk appetite favour names with positive free cash flow or sufficient liquidity to reach profitability without emergency capital.
Why each pick
INOD
Innodata is the highest-quality evidence-supported inflection in this cohort. Revenue grew 54% year-over-year in Q1 2026 to $90.1 million, adjusted gross margin expanded to 47%, adjusted EBITDA reached $25.0 million (28% of revenue), and net income was $14.9 million. The company raised full-year 2026 revenue growth guidance to approximately 40% or more from ~35%, and announced new Big Tech engagements expected to generate approximately $51 million in 2026 from a customer that contributed zero revenue a year earlier. Q2 2026 delivered record revenue with 58% year-over-year growth, confirming the acceleration is durable. The balance sheet is a key differentiator: $117.4 million in cash and short-term investments as of March 31, 2026, no appreciable debt, and an undrawn $50 million Wells Fargo facility. Customer diversification is improving, with other Big Tech customers growing 453% year-over-year in Q1, reducing single-customer concentration. The next specific catalyst is the Q3 2026 earnings release in early November, which should show whether the 40%+ growth trajectory and margin expansion are sustained.
OUST
Ouster is a high-growth lidar and perception-platform company with a clear product-cycle catalyst and a fortress balance sheet. Q2 2026 revenue reached $55 million, up 56% year-over-year, marking the 14th consecutive quarter of product revenue growth. The company shipped more than 17,000 sensors in the quarter, with lidar unit volumes up 70% year-over-year. Gross margin reached 49% with one-time benefits, and the company ended with $263 million in cash and no debt following a $191 million equity raise. The Rev8 native-color lidar platform is the most important product release to date, with production volumes expected to ramp sequentially in the second half of 2026 and manufacturing capacity ultimately exceeding 100,000 units annually. Ouster also secured its largest lidar deployment to date with the Utah Department of Transportation, covering several hundred intersections, and expanded smart-infrastructure deployments around 2026 FIFA World Cup venues. The specific catalyst is the Q3 2026 earnings release on November 3, which should show the first meaningful Rev8 production shipments and confirm the 30-50% growth trajectory.
AEVA
Aeva is an early-commercial 4D LiDAR company with a credible path to series production and multiple blue-chip customer wins. Q1 2026 revenue reached $6.3 million, up roughly 90% year-over-year, and management guided full-year 2026 revenue to $30-36 million, representing 70-100% growth. The company has been awarded a major production contract by a top European passenger OEM as the exclusive Tier-1 LiDAR supplier for its global L3 program outside China, with targeted start of production in 2028. Nvidia selected Aeva as the reference LiDAR sensor for its DRIVE Hyperion platform, and Daimler Truck is on track to receive C-sample sensors in 2026 ahead of a 2027 launch. Aeva also secured its first defense win with Forterra. Liquidity is adequate: $177.9 million in cash and marketable securities as of June 30, 2026, plus a $125 million standby equity facility through November 2026. The specific catalyst is the Q3 2026 earnings release in early November, which should show progress on Daimler C-sample deliveries and the company's target of four commercial wins in 2026.
LAES
SEALSQ is a post-quantum semiconductor and cybersecurity company with rapid revenue growth and a well-funded balance sheet. H1 2026 revenue reached $11.2 million, up 131% year-over-year, with gross margin expanding to approximately 48% from a lower base. The company reaffirmed full-year 2026 revenue guidance of $27-36 million, representing 50-100% growth over 2025 revenue of $18.3 million. The active commercial pipeline exceeds $225 million in potential revenue through 2029, including more than $100 million tied to quantum projects. The balance sheet is a major strength: $486 million in cash equivalents and restricted cash as of June 30, 2026, giving the company substantial runway to invest in post-quantum commercialization. The specific catalyst is the initial revenue from the QS7001 and QVault TPM post-quantum products expected in the latter part of 2026, plus the expected contractualization of a custom post-quantum ASIC in the second half of 2026. However, operating losses are widening, and the company remains dependent on converting its pipeline into revenue.
AREC
American Resources is a critical-minerals refining company whose ReElement Technologies subsidiary has a 2026 order book estimated at $75-100 million in revenue, up from a tiny base, as it scales into its Marion, Indiana Advanced Technology Center. The company has secured a multi-million-dollar antimony purification agreement with initial tolling fees and revenues forecast to exceed $29 million annually, and it has a strategic partnership with Mitsubishi Materials covering investment, offtake and feedstock. Q2 2026 revenue was estimated at $16.196 million versus $9.08 million in Q1 2026 and $393,210 a year earlier, indicating rapid sequential growth. The specific catalyst is the Q3 2026 earnings release on November 3, 2026, which should provide the first clear read on whether the ReElement ramp is tracking toward the $75-100 million order book. However, the company is below the preferred market-cap floor, has a history of delinquent filings, and its gross margin history is distorted by the transition from coal to critical minerals.
Other models on the same run
| Model | Picks |
|---|---|
| Claude Sonnet 5.5 | AMBQ, ASPN, SILC, ETON, CDNA |
| Muse Spark 1.1 | LUNR, PL, SOUN, BKSY, EXTR |
| Perplexity | RXRX, SOUN, ACHR, BBAI, CRSP |
| Gemini 3 Pro | ASTS, RKLB, SMR, LUNR, ACHR |
| Grok 4.5 | INOD, PGY, TMDX, SEZL, CALX |
| GPT-6 | ARDX, AMPX, FLNC, TMDX, SERV |
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