3 Stocks to Buy for 100X Gains Before the Next Tech Hype Cycle

Stocks to buy

Every investor is on the search for outsized gains. We all dream of finding that one small company that ends up changing the world and making its early shareholders fabulously wealthy. But how do you pinpoint the next “big thing” before it explodes in value? Such a task is easier said than done, but with a bit of luck and some smart stock picking, landing a big winner is not outside the realm of possibility.

If you’re allocating a portion of your portfolio to high-risk, high-reward investments, it makes sense to target some quality small-cap tech stocks that could provide multi-bagger gains when the next hype cycle hits. Just look at how AI stocks have soared over the past year. The next hype cycle will likely revolve around another emerging technology that sends related stocks soaring.

To give yourself a chance at landing such winners, you have to be willing to invest in more speculative, smaller-cap names in the tech sector. This investing strategy naturally comes with plenty of risk, as many of these companies will eventually fizzle out. But a few select firms will end up being huge winners, for those who can identify them early.

With that in mind, let’s explore these three stocks!

Rigetti Computing (RGTI)

Source: Bartlomiej K. Wroblewski / Shutterstock.com

Quantum computing is an emerging technology that I believe will drive the next major hype cycle in tech. As semiconductors continue to shrink, and AI models grow more advanced, we are going to need a massive leap forward in computing power that traditional silicon chips just won’t be able to deliver. This is where quantum computers come in. They can theoretically perform calculations exponentially faster than classical computers.

Rigetti Computing (NASDAQ:RGTI) is one of the more promising startups aiming to make quantum computing a commercial reality. The company develops quantum integrated circuits, and operates a quantum cloud platform called Forest. Notably, Rigetti has strong technology and doesn’t face the extreme cash burn issues common among quantum startups. Analysts expect Rigetti’s revenue to soar from $16.1 million in 2024 to $100 million by 2027. Moreover, the company has 147.5% 3-year revenue growth rate that crushes 99.5% of industry peers.

With little dilution risk and rapidly growing revenue, Rigetti has the makings of a potential multi-bagger if quantum computing enters the mainstream. This emerging technology could drive the next massive hype cycle in tech. When that happens, Rigetti should be one of the biggest beneficiaries as a pure-play quantum leader. I believe the stock offers asymmetric upside that more than justifies the risks inherent in its small size today.

Nano Dimension (NNDM)

Another sector that’s worth considering is 3D printing. Indeed, 3D printing has already become commonplace for basic plastic and carbon fiber models. However, printing functional electronics remains a challenge. This is where Nano Dimension (NASDAQ:NNDM) comes in. The company specializes in additively manufactured electronics (AME), an in-house process for 3D printing circuit boards and electronic devices.

As 3D printing grows more advanced, I expect significant hype around electronic printing capabilities to build. Nano Dimension is one of the leading players in this niche, and its core business is expanding nicely. In 2023, the company’s revenue grew 29% year-over-year to $56.3 million. Nano Dimension is also cutting costs, expecting to reach breakeven within 24 months. With $25-$30 million in targeted annual savings starting in Q1 2024, analysts expect Nano Dimension to achieve positive free cash flow in 2025.

As both revenue growth and cost savings kick in, the company’s path to profitability looks promising. This makes NNDM stock a solid speculative buy, in my books.

BrainChip Holdings (BRCHF)

Source: Andrus Ciprian / Shutterstock.com

Brain-computer interfaces represent one of the most fascinating frontiers in the technology sector today. From Neuralink’s headline-grabbing brain chip implants to AR/VR headsets, this space has no shortage of potentially disruptive applications. While mass adoption is still decades away, I believe the hype cycle around consumer brain computing could start much sooner.

One under-the-radar play is BrainChip Holdings (OTCMKTS:BRCHF), an Australian company specializing in neuromorphic AI chips and IP. As the first commercial producer of this hardware, BrainChip gives investors direct exposure to brain-inspired computing. The stock is very speculative, with a modest $428 million market cap and no revenue. But the long-term upside for this stock could be enormous if brain chips gain broader adoption.

Though brain chips themselves are likely a decade away from the mainstream, the hype cycle should begin much sooner. BrainChip’s leadership in neuromorphic AI puts it at the forefront of this emerging trend. Plus, its chips can also pique the interest of many AI companies, as they reduce dependency on big data centers by keeping the machine learning local to the chip. I believe BrainChip represents a potential multi-bagger over the long-run. As brain computing enters the spotlight, this first-mover could see its small market capitalization lifted dramatically higher over time.

Penny Stocks

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Omor Ibne Ehsan 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.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.

Articles You May Like

Citigroup Stock Forecast: Cloudy With a Chance of Windfalls
3 Stocks That Could Be the Next Apple, Amazon, or Google by 2034
Tesla Stock: Hold or Fold? Unpacking the Robotaxi Roadmap and EV Outlook.
Intel Stock is an AI Play You Can Skip Out On
The Coffee Stock Showdown: SBUX vs. BROS vs. MCD