Penny Stocks Outperform Nvidia & Palantir: 2 Picks

Most investment portfolios rightly center around established giants like Nvidia (NASDAQ:NVDA) and Palantir (NASDAQ:PLTR), which have delivered staggering returns as artificial intelligence transformed from buzzword to balance sheet reality. However, with these companies now valued in the trillions, the era of easy multibagger gains from them has likely passed. While big-name companies should constitute the vast majority of any portfolio, strategic allocation to carefully selected speculative investments can provide outsized returns that significantly boost overall performance.

The historical precedent is compelling: a few hundred dollars invested in Amazon (NASDAQ:AMZN) during its early days would have turned an investor into a millionaire today. While finding the next trillion-dollar company remains akin to searching for a needle in a haystack, investors can still achieve remarkable success by identifying promising companies before they reach mainstream recognition. The key lies in approaching speculation with discipline—allocating only a controlled, limited portion of one’s portfolio to these higher-risk opportunities while maintaining core positions in established leaders.

Cybercatch Holdings (CYBHF) represents one of the most dramatic success stories in the penny stock arena, with the AI-aided cybersecurity company delivering a staggering 1,208% gain over the past year alone. The company sells a software-as-a-service (SaaS) platform focused on continuous compliance and risk mitigation, primarily targeting small and medium-sized businesses. As artificial intelligence becomes increasingly pivotal for cybersecurity solutions, Cybercatch is positioned for continued expansion.

Despite its explosive performance, the company maintains a relatively modest market capitalization of approximately $115 million (CAD 158 million), suggesting significant room for further growth. The company’s strategic focus on government contracts represents a particularly promising avenue, having recently announced an agreement with a strategic reseller partner to U.S. government agencies to drive large sales. This government-focused expansion, combined with its ongoing efforts to capture market share among medium and smaller businesses, creates multiple catalysts for continued momentum.

The company’s ability to maintain its explosive growth trajectory will likely depend on securing additional contracts from U.S. government agencies and gaining broader analyst coverage. For investors seeking exposure to the cybersecurity sector without paying premium valuations for established players, Cybercatch offers a high-risk, high-reward opportunity in a market segment experiencing sustained tailwinds from increasing digital threats and regulatory requirements.

Avino Silver & Gold Mines (NYSEAMERICAN:ASM) has delivered growth that has trounced even some of the flashiest tech names, thanks to exceptional operational performance and favorable commodity markets. The Vancouver-based company, with main operations in Mexico, mines and sells silver, gold, copper, and base metal deposits. Its second quarter 2025 earnings revealed the highest quarterly mill throughput in company history, driving remarkable financial results.

The company reported 47% year-over-year revenue growth in Q2 2025, reaching $21.8 million, while adjusted earnings more than doubled. Operational efficiency improvements were equally impressive, with all-in sustaining cash costs falling 8% year-over-year. Gold production increased 17% due to both increased tonnes processed and improved gold recoveries, which rose to 74% from 70% in Q2 2024. The company maintains a strong cash position of $48 million, providing financial stability for continued expansion.

Management expects to continue growing production while reducing costs, with several near-term catalysts on the horizon. The company anticipates releasing its first mineral reserve estimate in Q1 2026 and meeting requirements for producing issuer status under National Instrument 43-101 standards. Additionally, Avino is conducting a nine-hole drilling program at the Avino Mine to test down-dip extensions of the Avino Vein below current mining levels.

Perhaps most significantly, the company recently announced underground development at its fully-owned La Preciosa Property, which contains significantly higher-quality silver and is expected to boost revenue starting next year. These operational improvements coincide with surging gold and silver prices, with silver up nearly 41% year-to-date. Analysts expect silver to continue gaining due to the historically large gap between the market capitalization of gold and silver, providing additional tailwinds for Avino’s primarily silver-focused production.