On September 22, 2025, the definitions changed.
Small-caps, mid-caps, large-caps — the way we’ve classified companies for decades no longer fits the reality of today’s market. The world has moved on, but the numbers everyone keeps using are stuck in the past.
I’m here to update the rules. You don’t have to like it. You don’t even have to agree with me. But this is where we are now. And if you want to keep up, you’ll need to adjust.
So let’s start at the beginning. What even is a “small-cap” stock? How small is too small? How big is too big?
According to ChatGPT, a small-cap stock is worth between $300 million and $2 billion. Gemini says the same thing.
Fidelity also says $300 million to $2 billion.
Meanwhile, Wikipedia says it’s between $250 million and $2 billion. So does Investopedia.
But, respectfully, they’re all wrong.
“We’ve Always Done It This Way”
Near the turn of the century, when I first started in this business, the market-caps were set.
Small-caps are companies between roughly $300 million and $2 billion. Micro-caps were anything smaller than $300 million.
On the other side of the spectrum, large-caps are any stock worth more than $10 billion, while mid-caps are the “Jan Bradys” of the world – anything between $2 billion and $10 billion.
That’s it. Those are the levels.
And, to many, these numbers still apply.
“Because we’ve always done it this way” is the worst excuse a human can use, especially for market professionals.
Take Nvidia (NVDA). At $4.2 trillion, it’s worth more than the entire Russell 2000 small-cap index combined. Trillion-dollar companies didn’t even exist until 2018, when Apple (AAPL) became the first to cross the mark.
Since then, Microsoft (MSFT), Alphabet (GOOG), Amazon.com (AMZN), Meta Platforms (META), Tesla (TSLA), Broadcom (AVGO), and even Berkshire Hathaway (BRK.A) have joined the club.
The world has changed. Market-cap inflation is real. And if you’re still pretending a $10 billion company belongs in the “large-cap” bucket, you’re playing a game that no longer exists.
As investors, we have to adjust. Sticking with outdated definitions isn’t just lazy. It’s dangerous.
The New Rules
Earlier this week, we decided to officially change the rules. Now, small-caps are between $1 billion and $10 billion.
If you’re not at a billion, then I can’t even take you seriously. Below $1 billion and your stock is a micro-cap.
In the old days (and according to many sources this is still the case), any stock above $10 billion was a “large-cap.” That’s laughable. By our math, $10 billion still makes you a small-cap.
Officially, a large-cap stock from now on is worth between $30 billion and $200 billion.
And mid-caps are the companies larger than small-caps ($10 billion) but smaller than large-caps ($30 billion). There are currently about 350 companies in the United States that fit this new mid-cap criteria.
Finally, there are 50 companies in America right now worth more than $200 billion. Those are now officially the mega-cap stocks.
At the end of the day, markets evolve, and so should the way we define them. Pretending 20-year-old thresholds still make sense in a world where single companies are worth trillions is lazy at best, irresponsible at worst.
That’s why I’ve redrawn the lines.
Call it market-cap inflation. Call it common sense. Either way, these are the new rules.
Stop clinging to outdated definitions. If you want to navigate today’s markets, you need to frame the playing field as it actually exists — not as it did in the 1980s.
Someone had to set the record straight. I just did.
Now the only question is, are you going to keep pretending, or are you going to play by the rules of reality?
Stay sharp,
JC Parets, CMT
Founder, TrendLabs