The S&P/TSX Composite Index is back at it again to cause more concerns for Canadian investors worried about the market being in an expensive territory and going through a downside correction. At writing, the benchmark index is down by 4.73% from its latest all-time high in November 2021.
Investors interested in Canadian growth stocks might be in a state of limbo right now. Going for growth stocks during a market correction might not seem like the best idea. However, the market volatility will inevitably subside. Investing in shares of small-cap stocks with immense long-term upside potential could be a wise decision in the current operating environment.
Today, I will discuss two incredibly cheap small-cap TSX stocks that you could consider adding to your investment portfolio today.
HIVE Blockchain Technologies
HIVE Blockchain Technologies (TSXV:HIVE)(NASDAQ:HVBT) stock has been seeing massive gains and declines on the stock market based on volatile cryptocurrency movements. A significant positive factor for the crypto stock was the U.S. Securities and Exchange Commission finally granting the green light for cryptocurrency-related exchange-traded funds (ETFs). The cryptocurrency mining company could see mining activities increase in the coming years.
HIVE Blockchain Technologies stock is an aggressive but very risky growth stock to consider. The stock has spiked twice in the last five years, and the latest surge saw it rise by over 6,000% in just over a year. While the stock might be too risky for you to go all-in, HIVE Blockchain stock could be worth allocating a small portion of your portfolio.
Fobi AI
Fobi AI (TSXV: FOBI) could be an ideal alternative to Lightspeed Commerce stock if you are looking for the rapid growth of a point-of-sale company without the high entry barrier. Fobi stock is a very small point-of-sale company that boasts a market capitalization of just $180.02 million at writing. It has been growing slowly, but could prove to be the ultimate growth story this year — largely due to the metaverse.
AI that can generate data to keep the metaverse running with very few interruptions could be instrumental in the coming years, and Fobi AI could be the company to fulfill that role. The company provides real-time data through its AI program to the Internet of Things devices. While it presently focuses on retailers, the company has made significant partnerships that could propel it towards a more lucrative path.
Foolish takeaway
The ongoing market correction at writing might cause a lot of concerns among growth-seeking investors regarding their investment returns in the short run. However, finding and allocating a portion of your investment capital to the right small-cap stocks could unlock the potential for you to realize immense long-term gains.
HIVE Blockchain Technologies stock and Fobi AI stock could be valuable additions to your self-directed portfolio if you can stomach the short-term challenges ahead.
