Woofun AI data shows that companies with negative earnings per share in the Russell 2000 Index have surged 154% since mid-2025, while those with positive earnings rose only 34%. Year-to-date, unprofitable constituents gained 45% compared to 18% for profitable ones, lifting the index 20% toward its best annual performance since 2003. In contrast, the S&P 500 rose 11%, with major tech giants up just 4%. Top-performing small caps are primarily tech and infrastructure firms benefiting from AI spending, indicating market preference for AI exposure over profitability.