Multibagger Selection: DeepSeek V3's picks
DeepSeek V3 picked RZLV, FEIM, UMAC, QUBT, LRMR with a twelve-month thesis, measured against SPY at each checkpoint.
| Experiment | Multibagger Selection |
|---|---|
| Model | DeepSeek V3 |
| 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 | RZLV | — | 78% | — | — |
| 2 | FEIM | — | 82% | — | — |
| 3 | UMAC | — | 75% | — | — |
| 4 | QUBT | — | 70% | — | — |
| 5 | LRMR | — | 72% | — | — |
Checkpoints
| Checkpoint | Portfolio return | Return vs SPY | Best peak multiple | Picks reaching 2x |
|---|---|---|---|---|
| 1 week | -6.77% | -5.97% | 1.09x | 0 |
| 1 month | -29.40% | -29.52% | 1.09x | 0 |
The model's market view
The environment for small and mid-cap multibagger candidates is constructive but selective. AI infrastructure, defense electronics, and quantum computing are attracting elevated investor attention, while biotech names with de-risked regulatory catalysts are also showing relative strength. Liquidity conditions remain supportive, and the IPO and secondary-offering window is open, allowing pre-revenue companies to fund operations. The primary risk is that momentum in thematic small caps reverses sharply if broad market risk appetite fades, and dilution remains a persistent threat across the cohort.
Why each pick
RZLV
Rezolve AI is an agentic AI platform that grew H1 2026 revenue approximately 1,970% year over year to $130.8 million, nearly triple its entire FY2025 revenue. The company reaffirmed FY2026 revenue guidance of approximately $360 million and targets at least $500 million in ARR exiting the year. Its gross margin of 48.9% is expected to expand as higher-margin software and recurring platform revenue scales. The market cap near $946 million leaves substantial room for appreciation if the revenue trajectory is sustained. The primary risk is that the current growth rate is driven by acquisitions and lower-margin loyalty revenue rather than purely organic software adoption, and the company has a history of operating losses.
FEIM
Frequency Electronics is a satellite and defense electronics supplier that reported fiscal Q1 2027 EPS of $0.41, up from $0.07 a year earlier, with revenue rising 70% to $23.5 million and gross margin expanding to approximately 46% from 37%. Funded backlog hit a record $129 million, up 82% year over year, with a book-to-bill ratio of 1.76:1. The company is debt-free with $61.4 million in cash and has established three-year targets of at least $150 million in revenue, a 50% gross margin, and a 30% operating margin. The primary risk is that the order book may reflect a cluster of pulled-forward orders rather than structural demand, and capacity expansion could pressure margins if execution slips.
UMAC
Unusual Machines is a commercial drone and components company that reported Q2 2026 revenue of $16.7 million, up 687% year over year and 107% sequentially, with enterprise customers accounting for approximately 95% of sales. The company is targeting $25 million in Q4 2026 revenue and $250 million in annual revenue by 2027. Gross margin was 34.7% in Q2 2026, improving from the prior quarter but below the company's 40% target. The primary risk is that the company remains unprofitable and may require additional capital, and gross margin recovery depends on scaling and infrastructure costs normalizing.
QUBT
Quantum Computing Inc. is a quantum optics and integrated photonics company that reported Q2 2026 revenue of $5.6 million, up from $61,000 in Q2 2025, and Q1 2026 revenue of $3.7 million, up from $39,000 a year earlier. The company completed the acquisition of NHanced Semiconductors and launched Fab 2 to expand U.S.-based manufacturing. It received an initial purchase order for five NeuraWave systems from Planck Dynamics, with a framework for up to 100 systems and more than $10 million in potential value. The primary risk is that gross margins are negative due to underutilization and integration costs, and the company remains deeply unprofitable, with a business model that depends on scaling manufacturing and commercial adoption.
LRMR
Larimar Therapeutics is a clinical-stage biotech developing nomlabofusp for Friedreich's ataxia. The FDA granted Breakthrough Therapy Designation in February 2026, and the company is conducting a rolling BLA submission seeking accelerated approval, with completion expected in the second half of 2026. Dosing of the first patient in a global confirmatory Phase 3 study is expected in Q3 2026. The company has $200.4 million in cash with a runway into Q2 2027. The primary risk is binary regulatory risk: if the FDA does not accept the BLA or requests additional data, the stock could decline sharply. Additionally, the company has a history of operating losses and may require additional financing.
Other models on the same run
| Model | Picks |
|---|---|
| Claude Opus 5 | ICHR, RUM, OUST, USAR, EMAT |
| Muse Spark 1.1 | CPRX, CLBT, INDP, LOB, PSO |
| Gemini 2.5 Pro | RCAT, LUNR, POET, OKLO, HIMS |
| Grok 4 | CAPR, INOD, SOUN, UCTT, NRIX |
| GPT-6 | ARRY, TSSI, RCAT, INDI, ACMR |
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