3 Stocks With the Potential to Make You an Overnight Millionaire

Stocks to buy

No risk, no reward, as the saying goes. While markets generally move in fits and starts, there are some stocks that prove to be multibaggers. These are stocks that are doubling investors’ money many times over and creating millionaires in the process. Often times, these stocks are risky bets and prone to volatility. But for investors who have nerves of steel, the risks can pay off.

You don’t have to look far to find these type of high-risk, high-reward stocks. They can be found in emerging and fast-growing sectors such as cannabis, cryptocurrencies and artificial intelligence, among other corners of the market.

While these type of stocks do not fit many investors, they can prove to be lucrative for people who have the right temperament and risk appetite. Here are three stocks with the potential to make you an overnight millionaire.

Canopy Growth Corp. (CGC)

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It’s extremely risky and there are rumors it could file for bankruptcy, but cannabis producer Canopy Growth Corp. (NASDAQ:CGC) could skyrocket if the Biden administration successfully reclassifies cannabis.

News reports that the White House wans to reclassify cannabis as a less dangerous Schedule III substance, putting it in the same category as prescription medications such as Tylenol with codeine and anabolic steroids, was enough to send CGC stock up 80% in a single trading session.

Investors have long viewed decriminalization of cannabis at the federal level, and eventual legalization of the recreational drug in America, as key to the future growth of the sector and cannabis stocks.

Any progress in that direction is sure to send Canopy Growth and other cannabis stocks soaring. The AdvisorShares Pure US Cannabis ETF (NYSEARCA:MSOS) rose 25% on news of the potential U.S. reclassification of cannabis. Other cannabis exchange-traded funds rose 20% or more.

CGC stock is up about 114% on the year, following a reverse stock split.

Coinbase Global (COIN)

It’s fortunes are largely tied to Bitcoin (BTC-USD), but cryptocurrency exchange Coinbase (NASDAQ:COIN) could be a millionaire-maker stock, if forecasts for the crypto sector prove true.

In the last 12 months, COIN stock has increased about 284%, outpacing nearly every other stock. The gains have coincided with a huge rally in cryptocurrencies, with Bitcoin’s price hitting an all-time high of just under $74,000 in March of this year. While the crypto market has pulled back recently, many analyst see it only as a breather.

Many analysts are still forecasting that the price of BTC will top $100,000 by year’s end. That would be good for Coinbase, whose trading volumes spike when a crypto rally is in full-swing.

In February, the largest crypto exchange in the U.S. reported its first profit in two years, sending its stock up 12% in a day. Trading revenue on Coinbase’s crypto exchange rose 79% quarter-over-quarter. In April, Oppenheimer (NYSE:OPY) raised its price target on COIN stock and reiterated a “buy” rating on the shares.

Super Micro Computer (SMCI)

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Buy the dip in Super Micro Computer (NASDAQ:SMCI). The selloff following the company’s first-quarter financial results is a complete overreaction, and it is not likely to be long before SMCI stock is zooming higher once again.

Down about 24% since the start of April, this is likely to be the best chance investors get to buy-the-dip in this red hot AI stock. Keeping in mind that the stock is still up more than 470% in the last 12 months and has gained about 3,790% in the past five years.

As for the company’s Q1 print, it was strong and showed blistering growth. While revenue missed Wall Street forecasts, it was still up 200% year-over-year. For all of this year, Super Micro Computer is forecasting sales growth of 582%.

Management said the latest results would have been stronger, had it not been for the shortage of a key component needed to make its in-demand servers that run AI microchips and semiconductors. However, the supply chain is improving and growth should keep accelerating this year and beyond.

On the date of publication, Joel Baglole did not have (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.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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