I'm a big believer in the idea that small Australian shares can deliver better long-term returns than large businesses, due to their longer growth runways and being less researched by the market.
The investment team at WAM Microcap Ltd (ASX: WMI) are always looking for opportunities that could allow the listed investment company (LIC) to outperform the ASX share market.
Wilson Asset Management has outlined two Australian businesses that could make excellent returns from here. Let's dive in.
Image source: Getty Images
Stealth Group Holdings Ltd (ASX: SGI)
The first Australian share to tell you about is Stealth Group, which WAM described as a business-to-business wholesaler and distributor of hardware, industrial, safety, and consumer products.
In mid-June, the company released a strategy and trading update that reaffirmed its previous guidance for another record year, with FY26 preliminary unaudited net profit after tax (NPAT) of $5.8 million, exceeding expectations.
WAM also noted that the company reiterated its long-term targets for annual sales of $500 million and an operating profit (EBITDA) margin of between 8% to 12% in FY28. The investment team noted that the Stealth Group share price increased significantly after this announcement.
The investment team concluded:
We see scope for further re-rating of the share price over the next 12 months as the market continues to recognise the strength of Stealth's earnings and growth outlook.
SharonAI Holdings Inc (NASDAQ: SHAZ)
The other Australian share WAM wanted to highlight is SharonAI. It's not listed on the ASX, though it reportedly plans to list on the ASX boards in the first half of FY27, according to WAM. For now, it's an Australian business listed on the NASDAQ.
The investment team described SharonAI as an Australian sovereign artificial intelligence (AI) infrastructure provider.
WAM noted that during June, the company announced a significant six-year strategic compute collaboration with Nvidia to enable 72MW of new data centre capacity in Australia.
The companies plan to deploy Nvidia's DSX AI factory design and scale up to 40,000 Grace Blackwell GB300 graphics processing units (GPUs), specialised chips used to power AI workloads, to meet demand from AI startups, enterprises, and university researchers.
After that agreement, SharonAI's total AI factory capacity increased to 132MW, with 102MW contracted to end customers.
WAM noted that the company expects to have more than 55,000 total Nvidia GPUs deployed by mid-2027.
WAM Microcap said it invested in SharonAI as a pre-initial public offering (IPO) investment in December 2025 at US$1 per convertible note. It listed on the NASDAQ in February 2026 at US$30 per share, and the notes were converted into ordinary shares in June 2026.
Since listing, the SharonAI share price has increased by 182.2% as of 30 June 2026.
WAM concluded its thoughts on the Australian share with the following:
We maintain a positive outlook towards SharonAI and believe news flow is likely to remain positive over the near term.
