Semiconductor giant NVIDIA (Nasdaq:NVDAAs the storm of COVID-19 makes its way through the wall of concern, investors looking for dramatic upside potential should consider emerging technology stocks. These ideas don't get as much coverage as NVDA — not even close. But their unpredictable nature means that stocks can soar under the right circumstances.
To be clear, the ideas below are what most people would call penny stocks. They may have analyst coverage, but valuations are limited, so you'll generally be looking at the opinion of one expert rather than the consensus. If financials move along the projected path, these companies have the potential to generate phenomenal profits.
But we're human, and no matter how smart we are, we make mistakes. If you can live with the extreme ambiguity in this space, consider these emerging tech stocks:
ARBE Robotics (ARBE)
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Based in Israel, ARBE Robotics (Nasdaq:Arbe) is in the emerging technology stock infrastructure software sector. According to its public profile, Arbe is a semiconductor specialist providing 4D imaging radar solutions to Tier 1 automotive suppliers and manufacturers. It serves markets including China, Hong Kong, Sweden, Germany, the United States and Israel.
Financially, as you'd expect from a low-priced security, Albe isn't the most reliable company. First, it has consistently posted losses. Also, its quarterly surprises have been 17.23% below breakeven from Q2 last year to Q1 2024. Over the past 12 months (Ten …), Albe suffered a net loss of $46.4 million on sales of $1.25 million.
Projections for fiscal year 2024 are also less encouraging, with revenues expected to grow by less than 1% to $148,000. However, looking ahead to fiscal year 2025, sales could increase significantly to $35.07 million. Moreover, the most optimistic target is $60 million in sales. Despite being very risky, ARBE has a unanimous Strong Buy rating.
Kaltura (KLTR)
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Headquartered in New York City Cultura (Nasdaq:KLTR) also belongs to the Infrastructure Software segment. According to the company profile, Kaltura offers various products and solutions based on the Software as a Service (SaaS) business model. Primarily, the company operates as an enterprise, education, and technology (EE&T) specialist, facilitating instruction for virtual and hybrid events, webinars, video portals, online learning, and more.
Financially, it's not a very exciting company. During the TTM period, Kaltura posted a net loss of $44.67 million on sales of $176.68 million. Currently, quarterly revenue growth (year-over-year) is 3.5%. Over the past four quarters since Q1 2024, the company's average surprise has been 4.18% below breakeven.
Experts expect the bottom line to improve slightly to a 9-cent loss in fiscal 2024, up from a 10-cent loss last year. But revenue could grow slightly to $175.67 million. So why stick with KLTR stock?
The online learning specialty could be a big deal in the future, which is why analysts are rating the stock a Moderate Buy with an average price target of $2.88, making this one of the emerging tech stocks worth considering.
Black Sky Technology (BKSY)
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Born in Herndon, Virginia. Black Sky Technology (New York Stock Exchange:BKSY) operates in the field of science and technology instruments. It provides geospatial intelligence, imagery, and related data analytics products and services, as well as mission systems, including the development, integration, and operation of satellites and ground systems. With the space economy rapidly gaining prominence, BKSY could be one of the best emerging technology stocks to buy.
Admittedly, BlackSky's revenue performance has been hit and miss. However, the quarterly surprise from Q2 2023 to Q1 2024 was 11.45%. The company missed expectations in two periods but delivered surprising surprises in the other two. During the TTM period, BlackSky posted a net loss of $52.35 million on revenue of $100.3 million. Currently, quarterly revenue growth is at 31.7%.
Interestingly, analysts expect sales to reach $110.22 million by the end of fiscal year 2024, which would represent a 16.6% increase from last year's $94.49 million, while fiscal year 2025 sales could improve to $142.55 million, an increase of 29.3%.
As expected, analysts are unanimous in rating BKSY stock a “Strong Buy.”
Aeva Technologies (AEVA)
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Based in Mountain View, California Aeva Technologies (New York Stock Exchange:EvaAeva is another example of an emerging tech stock in the infrastructure software ecosystem. According to the company's public profile, Aeva designs, develops, manufactures, and sells LIDAR sensor systems and associated software that enable autonomous driving. The company differentiates itself from competitors with its 4D sensor system that detects the predicted trajectory of external objects.
Autonomous driving is one of the hottest topics in the innovation space, and Aeva has the potential for huge upside. But in the meantime, potential investors must deal with the downsides. The average surprise over the past four quarters was 6.08% below breakeven. During the TTM period, Aeva posted a net loss of $149.48 million on revenue of $5.27 million.
While these statistics are not encouraging, experts believe that sales could reach $8.62 million in 2024, nearly double last year's $4.31 million. Looking ahead to 2025, sales could rise to $23.55 million, with a sky-high target of $32.5 million.
Overall, analysts have given the stock a consensus rating of Strong Buy, with an average price target of $9.56.
Sphere 3D (optional)
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Headquartered in Stamford, Connecticut Sphere 3D (Nasdaq:AnySphere specializes in blockchain mining. According to the company's company profile, Sphere partners with digital asset mining pool operators to provide computing power for their mining networks. Because of its cryptocurrency-related endeavors, any stock should be treated as a high-risk, high-reward opportunity. Still, that doesn't mean it's without appeal.
With the total market capitalization of all cryptocurrencies reaching approximately $2.56 trillion, the conclusion is clear: people love virtual currencies. Plus, the sector enjoys 24/7 trading access, which is a huge advantage for those who don't live in the US Eastern Time Zone. Still, Sphere is tricky to handle, as it incurred a net loss of $24.38 million during the TTM period.
That's not a particularly eye-catching statistic, but according to HC Wainwright's Kevin Dede, the only analyst covering the stock, Sphere could make $25.9 million in revenue in fiscal 2024, up from $21.91 million last year.
Dede believes any stock could hit $4 in the next 12 months, which would mean a triple increase in value, making any emerging tech stock a consideration.
Wag! Group (PET)
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Based in San Francisco, California, Wag! Group (Nasdaq:Pets) falls under the application software category. Wag develops and supports its proprietary marketplace technology platform, available as a website and mobile apps. The network enables independent pet caregivers to connect with pet owners. Services offered include dog walking, pet sitting, pet boarding and consultations with licensed pet professionals.
Financially, Wag has been hit-and-miss. Over the past four quarters, the average surprise has been just under 1%. Last year, it missed its bottom line profit target in Q2 and Q4, but did enough in other quarters to raise its average. Currently, during the TTM period, Wag posted a net loss of $13.77 million on sales of $86.51 million. Quarterly revenue growth is currently at 12.6%.
Analysts are forecasting a loss of 25 cents per share for fiscal 2024, a significant improvement from a loss of 35 cents last year. Revenue could reach $108.2 million, up 28.9% from $83.92 million last year. Looking ahead to fiscal 2025, revenue could grow again to $132.44 million. Thus, a strong case for PET to be considered as an emerging tech stock.
Quantum Computing (QUBT)
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Based in Hoboken, New Jersey Quantum Computing (Nasdaq:Kubuto) operates in the computer hardware sector. Touted as an integrated photonics company, Quantum offers accessible and affordable quantum machines. Among its proposed specialties are quantum computing-based authentication protocols that eliminate the vulnerabilities inherent in traditional encryption methods. With interest in these advanced processors at such a high level, QUBT ranks as one of the most attractive emerging stocks to consider.
According to Ascendant analyst Edward Wu, Quantum shares could trade at $8.25 per share over the next 12 months, which would be an astounding return. Currently, the stock is trading for less than $1. While the fundamentals look attractive, there has been little to be excited about from QUBT over the past few years.
During the TTM period, Quantum suffered a net loss of $29.73 million on revenue of $358,050, which isn't much in the grand scheme of things, but revenue could jump to $1 million in FY24, which would be a nearly three-fold increase.
Admittedly, there are absolutely no guarantees here. Still, if you want a ridiculous platform for speculation, QUBT could be interesting.
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read more: Penny Stocks — How to Make a Profit Without Getting Scammed
Publication date, Josh Enomoto Did not have, directly or indirectly, any positions in the securities mentioned in this article. Opinions expressed in this article are solely those of the author, copyright InvestorPlace.com. Publication Guidelines.
