Tom Maher on Small-Cap Investing, AI Infrastructure and Opportunities Beyond Big Tech

Small/mid-cap earnings growth is reaccelerating relative to large caps, driven by AI-adjacent industrial spending, reshoring, and margin gains.

• Two feet on pedals: Maher sees strong positives (AI buildout, 20-30% expected small/mid-cap earnings growth) offset by brake-pedal risks like peak AI capex acceleration, inflation, and a potential Fed rate-hiking cycle.
• Earnings growth drivers: Industrials tied to AI construction/equipment, a broader ISM recovery from sub-50 readings, and post-inflation margin efficiency gains are fueling small-cap earnings upgrades.

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