Every big company starts small.
That’s the reminder from investor Bruce Campbell of StoneCastle Investment Management, who says the next wave of tech wealth may come from a group of lesser-known names in technology and defence, many of which are using artificial intelligence to drive growth.
“All big companies start off as small companies,” Campbell told me on the Ticker Take YouTube channel. “If you can find those small companies, the opportunity is huge.”
Campbell has owned some of the tech giants we all know, from Nvidia to Palantir. But he spends much of his time looking for the next ones. His focus is on small and mid-cap companies with both accelerating revenue and accelerating earnings.
“When we talk about accelerated earnings growth, we don’t want five per cent this year and five per cent next year,” he said. “We want 15, then 20, then 25 per cent. That’s what Nvidia did. That’s what we’re looking for.”
He says it’s not easy to find companies that can grow that fast, but when you do, it can be life-changing for investors who spot them early.
Why tech and defence keep producing winners
Campbell says these industries stand out because of how quickly innovation compounds.
“Technology impacts our lives every single day,” he said. “The speed and acceleration of adoption just keeps picking up.”
Unlike traditional industries such as oil or gold, technology keeps expanding its footprint. Each wave of innovation builds on the last. And defence, increasingly tied to tech and AI, is benefiting from the same trend.
Here are seven he’s watching closely these days:
1. Abaxx Technologies (NEO Exchange: ABXX)
A fintech company known in the trading world. Abaxx is small but building tools designed for modern commodity and carbon markets, two areas that could see rapid digital transformation.
2. Kraken Robotics (TSX Venture: PNG)
A pure play on defence technology. Kraken builds underwater robotics and sensors. With rising global defense budgets, the company is operating in a sector where innovation is highly valued.
3. Kratos Defense & Security Solutions (NASDAQ: KTOS)
Kratos has been gaining attention for its work in drones and advanced defence systems. It’s no longer a small cap, but still small compared to the biggest contractors. Investors like Campbell see it benefiting from the long-term trend of integrating AI into national defence.
4. MDA Space (TSX: MDA)
A major Canadian space company that has seen its share price swing after a big run-up. Some investors worry about competition from SpaceX, but Campbell sees that pullback as an opportunity to buy quality at a better price.
5. Rocket Doctor AI (CSE: AIDR)
A small company applying AI to virtual healthcare. Think of it as a next-generation version of Teladoc, still in the early innings but focused on using artificial intelligence to match patients and doctors more efficiently.
6. TTM Technologies (NASDAQ: TTMI)
The largest circuit board maker in North America. Its products are found in nearly every electronic device, including those used in space and defence. Campbell points to its high-teens revenue growth and 20 to 30 per cent earnings growth as signs of real momentum.
7. Zedcor (TSX Venture: ZDC)
A small Canadian name that’s bringing AI to security. Zedcor provides mobile surveillance and monitoring systems, an area that continues to expand as businesses and governments look for smarter security solutions.
The Ticker Take
For investors, the lesson is clear. If you missed Nvidia’s early rise or Palantir’s breakout, there are still opportunities.
Finding them means focusing on companies with real growth in both revenue and earnings. It also means accepting that the road can be volatile, but the rewards can be extraordinary.
“The minefield of dead companies is enormous,” Campbell said. “But if you’re watching what you’re doing and you have a process, it can really be great to invest in this area.”
Jon Erlichman is a BNN Bloomberg contributor and the host of Ticker Take on YouTube.
