Nvidia has become one of the most valuable stocks in the world, with its market cap now north of $3 trillion. In the past 12 months, it has risen by more than 200% as investors remain bullish on the company's long-term prospects.

But investing in stocks at smaller market caps can sometimes yield better gains for investors. Three stocks with much smaller valuations than Nvidia and have outperformed the chipmaker in the past 12 months: Vertiv Holdings (NYSE: VRT), Coinbase Global (NASDAQ: COIN), and Carvana (NYSE: CVNA).

Here's a closer look at why these stocks have been rallying and whether they can continue to be good buys moving forward.

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Source Fool.com