U.S. small-cap stocks have been playing catch-up for years. Don’t expect that to change anytime soon, analyst warns - MarketWatch

1. U.S. small-cap stocks lag behind large-cap companies, affecting their appeal. 2. Large caps, especially AI leaders like Nvidia, expected to outperform long-term. 3. Recent gains in Nvidia skew perceptions of small-cap performance metrics. 4. Small-caps in Europe performing better than U.S. small-cap counterparts. 5. Investor interest shifts towards premium AI stocks over cheap small-cap valuations.