Investors are always on the hunt for the next big thing. Much like the internet revolution and the current AI boom, savvy investors look to get in early on the ground floor of the next world-changing trend. I believe a few under-the-radar companies have the ambition and growth potential to possibly be those next breakout stars.
Some think we could see another major technological disruption within a few years. Others believe it may take decades. But in my view, it’s worth examining a handful of businesses that have bold plans and believers rallying behind them. If things play out just right, you might be one of the fortunate few to have invested before the hype train takes off.
That said, I have to caution that investing in unprofitable startups is a high-risk game. Dreams and potential don’t always translate to reality. For every mega-cap tech giant born from a humble beginning, there are hundreds of failed ventures. So, while I’m excited to share my picks for three stocks that could be the next big thing, make sure to do your own research. Here’s my research on the three picks I’ve chosen today.
AST SpaceMobile (ASTS)
If you’ve been eyeing an investment in Elon Musk’s Starlink but found it out of reach, AST SpaceMobile (NASDAQ:ASTS) might just be the next best thing. This innovative company is developing a network of satellites designed to beam 5G internet directly to users’ smartphones without the need for any modifications to the devices.
The potential for AST SpaceMobile is immense due to the growing demand for internet access in underserved areas. Moreover, alternatives are ridiculously expensive. For instance, Starlink’s own website lists a hardware cost of $599 for residential orders. That’s pocket money for some people, but it’s very steep for Starlink’s average rural customer.
Thus, I can understand why Wall Street analysts are bullish on ASTS stock. Some are projecting annual sales of up to $35 billion in 2032. While these estimates are speculative, the company’s recent milestones—such as signing a definitive commercial agreement with AT&T (NYSE:T)—have bolstered my conviction here.
I believe that if AST SpaceMobile can execute on its plans and secure additional funding, the company has the potential to deliver massive returns for investors willing to take a chance on this obscure stock.
ASP Isotopes (ASPI)
ASP Isotopes (NASDAQ:ASPI) has also seen its stock soar over the past year. Moreover, the company’s CEO and COO recently made significant share purchases. However, the market appears to have taken a breather on ASPI stock lately. This company focuses on producing enriched isotopes for the healthcare, semiconductor, and green energy sectors and is targeting some of the most promising future growth industries. So, for those bullish on these niches, there’s certainly the possibility we could see a breakthrough here!
ASP Isotopes is enriching isotopes that are in high demand for applications like quantum computing, next-generation healthcare treatments, and clean energy. Of course, this is still a speculative investment. But I like the upside of a company with the potential to make a major breakthrough in a cutting-edge field.
The company recently reported $0.4 million in annual revenue, though it is still operating at a net loss as it scales up. However, H.C. Wainwright analysts remain bullish, increasing their price target to $5.50 on the stock. With insider buying, new supply deals for high-value isotopes like silicon-28, and plans for an expanded production facility in Iceland, ASP Isotopes appears to be progressing toward growth in a steady fashion.
Again, I will make it clear that ASPI stock is undoubtedly a high-risk investment. Still, it might be a compelling story for those seeking outsized returns.
IonQ (IONQ)
If you research the stock market a lot, you may have heard of IonQ (NYSE:IONQ), which is why I have put this company at the bottom of this list. However, IonQ is still an obscure business for most people. I believe quantum computing will be the next transformative technology after AI and the Internet. Companies are racing to build the most powerful quantum computers as traditional semiconductors reach their limits.
Quantum computing could enable AI models of unimaginable power and dramatically enhance computing capabilities. While mainstream adoption is likely decades away, the rapid pace of technological progress makes it wise to gain some exposure to key players in this space.
IonQ fits the bill for me. In Q1 2024, IonQ reported $7.6 million in revenue, beating guidance and growing 77% year-over-year. Its expanding sales pipeline and improving visibility allowed IonQ to raise its full-year 2024 bookings guidance to $75-$95 million. IonQ is also making headway on identifying the first potential commercial quantum computing applications, particularly in pharmaceuticals.
Its Seattle manufacturing facility is now operational, and its first production IonQ Forte Enterprise system for a customer is being built. Plus, IonQ has one of the strongest balance sheets among public pure-play quantum computing companies, with around $375 million in cash.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.