Multibagger Selection: DeepSeek's picks
DeepSeek picked UMAC, ONDS, RCAT, INOD, MPTI 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 | UMAC | — | 72% | — | — |
| 2 | ONDS | — | 68% | — | — |
| 3 | RCAT | — | 65% | — | — |
| 4 | INOD | — | 70% | — | — |
| 5 | MPTI | — | 66% | — | — |
Checkpoints
| Checkpoint | Portfolio return | Return vs SPY | Best peak multiple | Picks reaching 2x |
|---|---|---|---|---|
| 1 week | -2.47% | -2.52% | 1.06x | 0 |
The model's market view
The small- and mid-cap environment in October 2026 is selective but offers pockets of extreme upside for companies tied to U.S. defense drone procurement, AI data infrastructure, and aerospace component shortages. Momentum has favored domestically sourced drone hardware and defense electronics, while AI data engineering remains a high-growth niche despite single-customer concentration risks. Liquidity is adequate for the names screened, but dilution and customer concentration are the dominant company-specific risks. The five selections below are ranked for 12-month multibagger potential, weighing operating inflection, catalyst specificity, and reverse-valuation feasibility.
Why each pick
UMAC
Unusual Machines is a U.S.-focused drone component manufacturer benefiting from NDAA-compliant sourcing mandates. Revenue surged 687% year over year in Q2 2026 to $16.7 million, with enterprise customers accounting for roughly 95% of sales. The company has $229 million in cash, no debt, and over $367 million in working capital as of June 30, 2026. The Pentagon's Drone Dominance Gauntlet program and broader U.S. defense spending on domestic drones provide a specific, time-bound catalyst. The stock trades at a premium to near-term fundamentals, but the operating inflection and balance sheet strength support asymmetric upside if drone component demand persists.
ONDS
Ondas Holdings provides autonomous aerial and ground robot intelligence, with revenue surging from $6.3 million in Q2 2025 to $83.8 million in Q2 2026. Full-year 2026 revenue guidance was raised to $525–550 million, implying approximately 670% year-over-year growth. The company has over $1.4 billion in net cash and virtually no debt. The formation of Regna AI with Palantir in October 2026 provides a specific, time-bound catalyst for sovereign AI edge deployment. The market cap of $3.83 billion reflects high expectations, but the revenue trajectory and balance sheet provide a credible path to further appreciation.
RCAT
Red Cat Holdings provides drone and robotic solutions for defense and national security. Q1 2026 revenue of $15.5 million grew 849% year over year, with gross margins expanding 64.8 percentage points. The company has a cash-rich balance sheet with $325.5 million in cash and short-term investments as of June 30, 2026. Management maintained a 2026 revenue target of $150–180 million, implying a sharp second-half ramp. The U.S. Army Short-Range Reconnaissance (SRR) program and broader defense drone adoption provide a specific, time-bound catalyst. The market cap of $792 million offers substantial upside if the second-half revenue ramp materializes.
INOD
Innodata is a small-cap AI data engineering company with 12 consecutive quarters of year-over-year revenue growth. Q2 2026 revenue was $92.1 million, up 58% year over year, and management reiterated full-year 2026 revenue growth guidance of 40% or more. The company has $117.4 million in cash, no appreciable debt, and an undrawn $50 million credit facility. The stock trades at a forward P/E of roughly 30x based on consensus 2026 EPS estimates, which is reasonable for a high-growth AI infrastructure provider. Analyst average price target is $122.75, implying substantial upside. While customer concentration remains a risk, the company is actively diversifying its customer base.
MPTI
M-Tron Industries manufactures high-performance radio frequency components for aerospace, defense, and avionics applications. Q1 2026 revenue grew 15.3% year over year to $14.7 million, with gross margin improving to 44.9% from 42.5%. Backlog increased 38.4% to $76.8 million as of March 31, 2026, and further to $84.0 million as of June 30, 2026. The company completed a rights offering in April 2026, raising $42.1 million in cash. The U.S. defense sector's rapid changes and demand for RF components provide a specific, time-bound catalyst. The market cap of $300 million offers substantial upside if backlog converts to revenue and margins remain strong.
Other models on the same run
| Model | Picks |
|---|---|
| Gemini 1.5 Pro | ASTS, LUNR, RXRX, ACHR, IONQ |
| Muse Spark 1.1 | EOSE, CAPR, SERV, AMPL, SOUN |
| Grok 4.5 | INOD, NRIX, BBAI, IVA, CALX |
| GPT-6 | BKSY, AMPX, INOD, RDW, EOSE |
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