Tech Rally Spurs Hunt for Small-Cap Gems

European markets are at record highs as a tech-led rally and expectations of lower U.S. borrowing costs are driving investors to hunt for small-cap and penny-stock opportunities across the region. Notable European ideas include penny-stock Olidata (market cap ~€52.1m), which has more cash than debt but short-term liabilities exceeding assets, volatile shares and a one-off €76.5m loss, and Evergent Investments (market cap RON1.94bn), which shows diversified revenues, a net cash position, 12.3x interest coverage and a low P/E of 7.6x. In Asia, CNMC Goldmine posted 210% year-over-year earnings growth in H1 2025 with revenue and net-income gains and a cash-rich balance sheet, trading well below estimated fair value. Indian mid-cap ideas may offer more than 23% upside for investors with horizons beyond two years but require combined quantitative and qualitative screening and attention to SEBI allocation rules for large- and mid-cap exposure. For investors seeking a defensive way to capture growth while managing volatility, profitable, high-quality businesses such as DoubleVerify and Texas Roadhouse are highlighted as alternatives.