The market is going through a rough patch. Inflation came in hot for the month of March at an annualized rate of 3.5%, dashing hopes for interest rate cuts in the near-term. Excluding volatile food and energy prices, core inflation increased by 3.8% from a year ago in March, well above the U.S. Federal Reserve’s 2% annualized target. Futures markets don’t expect the central bank to start cutting interest rates until September of this year, and for there to only be two rate cuts by Dec. 31. So what’s an investor looking for stocks to turn $10,000 into $1 million supposed to do?
As recently as a week ago, markets had priced in the first rate cut happening in June and for there to be three rate cuts in 2024. As a result, trading activity in stocks has been volatile to start the second quarter, with the major indices pulling back in recent sessions. While concerning, the upheaval hasn’t taken down all stocks. Some equities continue to thrive and lead the entire market. Areas such as crypto, artificial intelligence (AI) and semiconductors remain strong. Some stocks have already doubled this year.
Here are three stocks to focus on if you’re looking to turn $10,000 into $1 million.
Coinbase Global (COIN)
If cryptocurrencies continue running higher, as is expected, then Coinbase Global (NASDAQ:COIN) could be a solid bet. COIN stock has already enjoyed a blistering rally having more than tripled (up 277%) over the last 12 months. A little more than three months into this year and Coinbase’s share price is up 63%. The cryptocurrency exchange has been running hot as trading in digital assets rebounds after a bear market throughout 2022. In the past year, crypto trading has surged and gone into overdrive after U.S. regulators approved spot Bitcoin (BTC-USD) exchange-traded funds (ETFs) in January.
Driven by a surge in crypto trading, Coinbase reported blowout earnings for the fourth and final quarter of 2024, sending its stock higher. Notably, the company reported its first profit in two years. The biggest crypto exchange in the U.S. announced earnings per share (EPS) of $1.04 compared to just 27 cents that was forecast on Wall Street. Coinbase also reported that its revenue increased 58% from a year earlier to $953.8 million, ahead of expectations for $818.36 million. With crypto prices rising, so too will COIN stock. If you’re on the hunt for stocks to turn $10,000 into $1 million, COIN could be a lucrative option.
Super Micro Computer (SMCI)
It’s likely to be a rocky ride, but for investors looking to get rich, there are few stocks that can match Super Micro Computer (NASDAQ:SMCI). The company, which makes the servers that AI applications run on, continues to lead the benchmark S&P 500 index when it comes to gains this year. Since January, SMCI stock has risen an astounding 217%. In the last 12 months, the share price is up nearly 800%. Super Micro Computer continues to run laps around nearly every other stock.
To be clear, this is not a meme stock. Super Micro Computer is a legitimate company that happens to be the right stock for the AI revolution that’s taking place. Thanks to its rapid growth, SMCI was added to the S&P 500 index in this year’s first quarter, and analysts continue to upgrade the shares despite the massive rally. JPMorgan Chase recently initiated coverage on the stock with an “overweight” (buy) rating and a $1,150 price target, implying 27% upside from current levels.
Micron Technology (MU)
Micron Technology (NASDAQ:MU) shares have really taken off after the company’s latest earnings report. MU stock has nearly doubled over the past 12 months, including a 49% gain since January of this year. It has become a hot new AI play for investors. The company, which makes memory storage for computers and specializes in USB flash drives, reported earnings per share (EPS) of 42 cents compared to a loss of 28 cents that was expected among analysts who cover the company.
Revenue totaled $5.82 billion versus $5.35 billion that was expected on Wall Street. Executives at the company said they are benefitting from the current AI boom, with demand for its memory and computer data storage products rising. Looking ahead, management expects revenue of $6.6 billion for the just-completed first quarter, above the $6.02 billion that was expected on Wall Street. Given the robust outlook, MU stock can expect to continue its rise moving forward.
On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.