Loss-Making Russell 2000 AI Stocks Surge 154%, Leaving Magnificent Seven Behind

Strong demand for artificial-intelligence infrastructure and capital expenditure has sparked a global investment boom. The Russell 2000, a benchmark for U.S. small- and mid-cap stocks, has traditionally been dominated by consistently profitable companies. But the market’s current frenzy for AI has upended conventional valuation logic, turning unprofitable AI-related stocks into sought-after investments.

Since mid-2025, loss-making AI stocks in the Russell 2000 have surged 154%, far outpacing the 34% gain among profitable companies and leaving the Magnificent Seven U.S. technology stocks well behind, according to statistics. The rush of capital into AI-related plays has directly propelled the Russell 2000 to its best start in nearly 20 years.