In this piece, we will take a look at the 10 high risk high reward growth stocks to buy.
When it comes to making money on the stock market, most investors are typically attracted to growth stocks. Growth stocks are primarily identified by the price to earnings ratio (P/E) for those firms that are profitable. A higher P/E ratio compared to the industry multiple means that investors have already priced in future growth into the share price to an extent and any surpassing of investor expectations sees the share price appreciate. Since some firms, particularly those in the software as a service (SaaS) industry, reinvest their revenue into growth, their earnings are often negative. Subsequently, the growth potential of these stocks is evaluated by their EV/Sales ratio, and you can find more details by reading 11 Best Cloud Stocks to Buy According to Analysts.
However, while these metrics are important for evaluating stocks, they often do not cover the riskiest stocks that promise the highest returns. In theory, stocks with the lowest prices often carry a higher potential of 10x or even 100x gains. This is because their low prices and small market size both have a substantially larger potential for growth when compared to bigger firms. These returns typically materialize over the course of several decades.
For instance, after accounting for their stock splits, the three most valuable firms in the world were trading at $0.10, $0.11, and $0.04, respectively. In today’s post inflationary terms, this means that their shares started to trade at $0.19, $0.21, and $0.08 in the same order. As a result, these bottom barrel stocks at the time of their IPOs, have delivered 183,916%, 401,600%, and 256,975% in returns through price appreciation after their stock market debut.
In short, these 1,500x+ returns through price appreciations are what drive countless investors to flock to the stock market daily. Yet, these returns also mean that investors, particularly inexperienced ones or those on the retail side, fall victim to scams. In fact, along with offering the highest potential for returns, micro cap stocks are also the ones with the greatest number of scams. For instance, one common way in which stock brokerages target unsuspecting retail investors is through a chop stock. This practice isn’t illegal, but it involves the seller withholding key information from the buyer. A chop stock is a stock that a brokerage buys from a large shareholder at a deep discount and then sells to unwary buyers at market price which creates a conflict of interest for the selling party as it stands to significantly profit from any sale.
While there are no surefire ways to spot a chop stock, an investor should be on the lookout for stocks that their brokerages (or others) are selling at slight or medium discounts to the market price, and in case of the brokerages, not disclosing the commission made from the sale. The mantra is simple: If it’s too good to be true, it generally is. While all this sounds nefarious, it isn’t the only legal way that gullible investors are exploited on the stock market.
In fact, one of the more common and legal ways through which investors, particularly in smaller companies, are harmed is additional share issues by firms who are struggling to raise capital through profits or debt financing. Share sales, even though they provide investors an opportunity to profit via price appreciations, are less riskier than debt issues since in case a company becomes a gone concern, debt holders are required to be paid back first. Naturally, firms prefer them for these reasons, but the more shares are issued, the lower the value of existing equity becomes. Consequently, you are likely to see micro cap stocks in particular drop in prices after management announces additional equity raises.
Additionally, firms that are struggling operationally try to shore up their corresponding stock devaluation through reverse stock splits. These reduce the number of shares outstanding but also end up providing unwary investors with a false sense of comfort in seeing the value of their investments increase. Since the share price appreciation is unrelated to business fundamentals, it carries the risk of depreciation in the future if the firm fails to reverse poor performance. This fact is also backed by research from the University of Texas and Lamar University. After analyzing 1,206 reverse stock splits between 1995 and 2011, the research demonstrates that less than half, 500 or 41%, of the firms, were able to continue operations for five years or longer after the reverse split. Out of the other 59%, a whopping 80% were de listed from exchanges less than five years after the reverse split, for reasons that include bankruptcy. The remaining 20% were acquired, and for this subset, the median survival time post split was just 20.9 months.
There are some tips that an investor can use to avoid stock scams. For instance, one should never fall for a sense of urgency created by the seller, believe only in verifiable and raw numbers as opposed to ‘testimonials’ that promise quick riches, ensure that anyone selling an investment is a licensed finance professional, be on the lookout for effort free ways to quickly make massive amounts of money, and follow the principle of ‘if it’s too good to be true, it generally isn’t.’ Other warning signs of micro cap stock fraud include stocks of shell companies with little to no operations, heavy promotion of the stock as opposed to the actual business, sudden and rapid jumps in share prices and trading volume, and trading suspensions by the SEC.
Investment research websites, newsletters, emails, and even newspapers can all pitch micro cap stock scams. So just because the source appears credible doesn’t mean the underlying stock is as well. Finally, research is a non negotiable for any investment decision, and the SEC has listed several ways to conduct research. Yet, just because a firm regularly releases information doesn’t mean that it’s ripe for investment solely because of this fact.
With these details in mind, let’s take a look at some high risk high reward growth stocks to buy.
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Our Methodology
To make our list of the high risk high reward growth stocks to buy, we first made a list of 15 stocks that the financial media is recommending. Then, they were ranked by the number of hedge funds that had bought the shares in Q2 2024 and the top stocks were selected.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
10. Bitfarms Ltd. (NASDAQ:BITF)
Number of Hedge Fund Holders In Q2 2024: 16
Bitfarms Ltd. (NASDAQ:BITF) is a Canadian Bitcoin miner with operations in the US, Canada, Argentina, and other countries. The firm is heavily exposed to Bitcoin price and demand, as 98% of its revenue comes through Bitcoin mining. This makes Bitfarms Ltd. (NASDAQ:BITF) a classic high risk and high growth stock as the firm can deliver returns if Bitcoin’s acceptability and popularity grow worldwide. Similarly, it can face significant headwinds should regulatory scrutiny of the cryptocurrency grow or if economic tailwinds force investors to divest their risky Bitcoin holdings and move into safe haven assets such as gold and the US dollar. Bitfarms Ltd. (NASDAQ:BITF)’s share price in 2024 has fared much worse than Bitcoin though. The stock is down 37% year to date even though Bitcoin price is up by 25%. Due to its Bitcoin exposure, the keys to Bitfarms Ltd. (NASDAQ:BITF)’s hypothesis are its energy costs, mining capacity, and hash rate. On these fronts, while it benefits from using renewable energy, the corresponding costs are high. Bitfarms Ltd. (NASDAQ:BITF) could see tailwinds in the future if it is able to leverage the growing demand for AI data centers or if it is acquired.
Bitfarms Ltd. (NASDAQ:BITF)’s management commented on its diversification plans during the Q2 2024 earnings call:
“We own and operate a portfolio of high-quality energy assets that are currently monetized through Bitcoin mining. When we take a step back and look at how we get the most value and utilization out of our portfolio, we believe that HPC/AI has real potential. Recent HPC/AI deals are boasting revenues from approximately $140 to $210 per MWh these are potentially very attractive and stable high margin revenue streams not correlated to Bitcoin prices. Comparatively Bitcoin mining with T21 miners yesterday on Aug 7th yielded approximately $80 per MWh. Properly timed we believe that investments in Bitcoin Mining provide a better return on invested capital compared to HPC/AI due to their materially lower CapEx requirements and upside exposure to Bitcoin prices.”
9. Archer Aviation Inc. (NYSE:ACHR)
Number of Hedge Fund Holders In Q2 2024: 21
Archer Aviation Inc. (NYSE:ACHR) is a new age transportation company that is developing electric vertical take off and landing (eVTOL) aircraft. This positions the firm to benefit substantially from clean transport that aims to solve the problem of urban mobility in today’s highly populated mega cities. At the same time, it also exposes Archer Aviation Inc. (NYSE:ACHR) to significant risks as its products are dependent on regulatory clearance from the Federal Aviation Administration (FAA). These risks are also evident in its short interest, with recent data showing that 18.4% of Archer Aviation Inc. (NYSE:ACHR)’s shares outstanding have been sold short. The firm does have a robust backlog of $6 billion though, which includes orders for its Midnight aircraft. This provides visibility into customer confidence and demand for its products, which helps Archer Aviation Inc. (NYSE:ACHR)’s prospects along with the fact that it has completed 400 test flights this year and entered into a contract manufacturing deal with auto giant Stellantis.
During its Q2 2024 earnings call, Archer Aviation Inc. (NYSE:ACHR)’s management shared how it plans to create an air carrier network:
“It’s not enough to just build our order book. We also need to lay the foundation for where these aircraft will fly. Earlier this quarter, we showcased a detailed plan for our air taxi network in the San Francisco Bay Area. This network predominantly leveraged relationships we’ve built with existing aviation infrastructure operators across Silicon Valley, Napa, and the East Bay, including our partners Signature Aviation and Atlantic Aviation. In addition, we revealed our plans with Kilroy Realty for the [indiscernible] vertiport in the heart of South San Francisco, near some of San Francisco’s largest tech companies, including Genentech and Stripe. We also announced plans to develop operational concepts for a joint air taxi network with Southwest Airlines, California’s largest air carrier by passenger and flight volume, operating at 14 airports across the state.
By combining Southwest California airport hubs and frequent interstate flights with Archer’s planned network, the goal is to offer Southwest passengers even faster door-to-door journeys. Routes like Santa Monica to Napa could take less than three hours, nearly half of what they can take today. Today, we unveiled our plans for our air taxi network in Los Angeles. LA commuters spend over 100 hours every year stuck in traffic, and that’s not counting the drives they decide to skip because they didn’t want to spend the time in traffic. This planned network includes takeoff and landing locations at Los Angeles International Airport, USC, Orange County, Santa Monica, Hollywood Burbank, Long Beach, and Van Nuys, alongside our partners Signature and Atlantic Aviation, as well as United and Southwest Airlines.”
8. SkyWest, Inc. (NASDAQ:SKYW)
Number of Hedge Fund Holders In Q2 2024: 28
SkyWest, Inc. (NASDAQ:SKYW) is a US based regional airline with flights within the US and to Mexico and Canada. The capital intensive nature of its business means that the key factors surrounding the firm’s story are its debt profile, its fleet life and order book, capital expenditure, and operating costs. SkyWest, Inc. (NASDAQ:SKYW) is doing well on nearly all of these. The firm has grown its operating cash flow by 53% between 2022 and 2023. Additionally, SkyWest, Inc. (NASDAQ:SKYW) reduced its debt by $200 million in H1 2024 and it expects to pay $400 million in debt in 2024. The firm’s free cash flow has 162% from 2020 end to H2 2024 TTM primarily as its capital expenditure has been cut in half. These figures make SkyWest, Inc. (NASDAQ:SKYW) a robust and cash healthy entity and it is also gaining regional market share by increasing its fleet of dual class aircraft. The airline plans to become the world’s biggest operator of Embraer aircraft in the world by 2026 through 278 E175 aircraft which are preferred by passengers because of their roomy interior.
SkyWest, Inc. (NASDAQ:SKYW)’s management shared key details for its fleet overhaul during the Q2 2024 earnings call:
“During the last quarter, we announced a new flying agreement for 20 United-owned E175 to replace 20 CRJ200s under our United contract. These aircraft are coming from another United Express carrier, we anticipate that all 20 E175s will be transitioned to SkyWest this year. As of June 30, we had transitioned to 11 of these aircraft. These 20 are in addition to the 21 currently on order, 19 for United, one for Delta and one for Alaska. We expect delivery of five more this year, eight in 2025 and eight in 2026. At the end of 2026, our E175 fleet total will be 278 continuing to solidify SkyWest as the largest Embraer operator in the world. With the addition of the large dual-class aircraft to our fleet, our regional market share has increased to 30% and of the large dual-class aircraft from 23% in 2019.
We are excited about our market share improvement. Let’s shift focus to our CRJ700 fleet which is a valuable asset and an ideal replacement for single-class CRJ200s. The 19 CRJ700s expiring from our American fleet during 2024 will transition to become CRJ550s in our fleet. The first CRJ550 began flying for Delta during July. We anticipate transitioning most of these aircraft to the Delta fleet by the end of 2024. We have approximately 25 additional CRJ700s that have contract expirations in 2025. We are working with our major partners to place these aircraft under prorate and contract flying agreements. With each of the new 19 E175s we received and financed for United, a CRJ700 contract expire simultaneously. By the time these contracts conclude, the debt on the 19 CRJ700s will be fully paid.”
7. New York Community Bancorp, Inc. (NYSE:NYCB)
Number of Hedge Fund Holders In Q2 2024: 30
New York Community Bancorp, Inc. (NYSE:NYCB) is one of the most notable banking stories of 2024. Its stock is down by a whopping 65% year to date after a disastrous Q4 2023 earnings report and a subsequent bond ratings downgrade. The Q4 results saw New York Community Bancorp, Inc. (NYSE:NYCB) post a surprise $0.27 loss per share which was a complete 180 degree from analyst estimates of $0.26 in EPS. The bank blamed this on $185 million of charge offs related to the commercial real estate sector which has been in a constant state of turmoil since the pandemic as well as $552 million in additions to loan loss provisions. New York Community Bancorp, Inc. (NYSE:NYCB)’s faced another headwind in February when Moody’s downgraded all of its bond ratings to Ba2 which is junk bond status. Naturally, investors weren’t pleased, Looking ahead, New York Community Bancorp, Inc. (NYSE:NYCB) is expected to be unprofitable in 2024 and post a small profit in 2025. Any further downsides could further batter the stock, while a beat could see significant tailwinds.
Gator Capital Management shared another key aspect of New York Community Bancorp, Inc. (NYSE:NYCB)’s performance during its Q1 2024 investor letter:
“We believe NYCB’s issues are idiosyncratic to NYCB. NYCB has long been a New York City apartment lender. Their track record over many decades has been spectacular with near zero losses. But, in 2019, NYC passed a law that limited how much landlords could raise rents. In the current inflationary environment, landlords’ costs are rising, but they can’t raise rents, so investors are concerned that landlords will get squeezed so much that they will default on their loans”
6. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders In Q2 2024: 32
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a high end biotechnology company that is perhaps one of the riskiest on our list. This is because the firm is one of the few companies in the world that is developing a genetic engineering platform to produce bacteria for industrial raw material production. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is yet to post an operating income, and its ability to grow requires not only successfully growing its commercial presence but also seeing a significant demand for its products across a variety of industries such as pharmaceuticals and agriculture. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) also recently underwent a remarkable 1 for 40 reverse stock split, and the keys to its hypothesis moving forward will be management’s ability to manage costs and land big deals for products. The firm does have $730 million in cash and equivalents which provide it some room to fund operations as it targets aggressive growth.
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)’s management shared details for its cell engineering programs during the Q2 2024 earnings call:
“While still very early days, this slide gives you some detail on how the nature of programs is changing. We added a total of 18 new programs and contracts in Q2 2024, of which 10 were generally comparable in size and scope to historically reported new programs. Importantly, you’ll note that of those 10 deals, 5 included downstream value share potential. In addition, we commenced 8 other customer contracts in the quarter that represent a variety of small deal architypes. These are generally much smaller in scope and shorter in duration and included 2 lab data-as-a-service deals in the protein characterization space, that we signed with a large cap tech company, which itself is an entirely new customer segment. The current sales pipeline for both categories of deals is solid.”
5. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders In Q2 2024: 32
Albemarle Corporation (NYSE:ALB) is a chemicals company that is one of the biggest lithium providers in the world. This places it in a key position to benefit from the surge in global electrification through the growing use of electric vehicles and energy storage platforms. At the same time, it also makes Albemarle Corporation (NYSE:ALB) vulnerable to commodity pricing shocks, particularly in a weak economic environment. EVs and other green energy products typically perform well when consumer spending power is high, which in turn increases the demand for Albemarle Corporation (NYSE:ALB)’s products. Therefore, it’s unsurprising that the shares are down 57.5% over the past twelve months as high rates have depressed the demand for electric vehicles. Albemarle Corporation (NYSE:ALB) could see further turbulence in the future if the West increases tariffs on Chinese EVs and sluggishness in the EV industry makes battery manufacturers go out of business.
The London Company mentioned Albemarle Corporation (NYSE:ALB) in its Q2 2024 investor letter. Here is what the fund said:
“Sold our remaining position in ALB after the stock triggered our soft stop loss review. We are concerned that weaker demand in the US for electric vehicles coupled with greater than expected supply of lithium reaching the market may lead to declining lithium prices. This will likely lead to lower cash flow generation in the years ahead, which weakens the downside protection case for the stock.”
4. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders In Q2 2024: 37
Kinross Gold Corporation (NYSE:KGC) is a Canadian gold mining company with operations in Brazil, Chile, Canada, and other countries. The growing popularity of gold among retail and professional investors as well as central banks in the wake of US bond volatility has translated into 77% share price gains for Kinross Gold Corporation (NYSE:KGC)’s stock over the past twelve months. At the same time, central to the firm’s hypothesis is its ability to control costs at its different production sites. Like other gold miners, Kinross Gold Corporation (NYSE:KGC) remains vulnerable to regulatory risks to its gold mines as well as production stoppages that drop output. However, a weakening economic environment could bode well for Kinross Gold Corporation (NYSE:KGC) as investors rush into haven assets. On an operational front, the hypothesis is dependent on stable production volume and consistent gold quality along with consistent guidance. Additionally, it has faced gold quality pressures at its Paracatu mine which has created some headwinds.
Kinross Gold Corporation (NYSE:KGC)’s management shared details for its 2024 production outlook during the Q2 2024 earnings call:
“Following a strong first half, Tasiast remains on-track to meet its full year production guidance of 610,000 ounces. At Paracatu, reduction of 130,000 ounces and a cost of sales of $1,039 per ounce were unplanned and also improved over the prior quarter. The mine continues to see steady performance on throughput, grades and recoveries in line with the mine plan. Mine sequencing continues to transition through the lower grade portions of the pit as planned before moving back into the higher grades by year-end into 2025.
Paracatu remains on-track to meet it’s 2024 production guidance of 510,000 ounces. At La Coipa, Q2 production of 66,000 ounces was lower over the prior quarter whilst cost of sales was higher mainly due to higher low maintenance costs and timing of sales. Production at La Coipa remains on-track for the full year target of 250,000 ounces as strong performance on grades and recoveries offset lower throughput.”
3. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders In Q2 2024: 42
The Boeing Company (NYSE:BA) is truly a high risk and high reward stock, particularly after what has transpired over the past 12 months. The firm’s aircraft deliveries tanked by 27% in June after production stoppages due to quality concerns impacted its manufacturing operations. The June drop followed a massive 50% delivery drop in May, and to make matters worse for The Boeing Company (NYSE:BA), its defense and space division had to deal with thruster problems on the Starliner spacecraft that eventually forced NASA to bring the ship back un crewed from the International Space Station (ISS) in September after months of deliberation. The Boeing Company (NYSE:BA) also faced potential strikes by its factory employees, but things appear to be moving forward on this front after it announced a deal in September to avert a potential manufacturing shutdown. With a new CEO at its helm, The Boeing Company (NYSE:BA) has to reverse its reputational loss and safety lapses to regain lost industry stature.
The Boeing Company (NYSE:BA)’s management shared key details for its deliveries during the Q2 2024 earnings call:
“The quarter ended with approximately 90 737-8s built prior to 2023, the vast majority for customers in China and India. This is down 20 from last quarter’s value, and we expect approximately 10 more delivered in the month of July. We still expect to deliver most of these airplanes by year-end as we work towards shutting down the shadow factory.
Regarding the -7 and the -10 models, inventory levels remained stable at approximately 35 airplanes and the certification timelines remain unchanged. On the 787, we delivered nine airplanes in the quarter, although the quarter was impacted by lower production, seat delays and other delivery timing items noted previously. We’re starting to work through these issues and delivered six airplanes in July. The program produced below five per month in the quarter as expected and still plans to return to five per month by year-end. We ended the quarter with around 35 airplanes of inventory built prior to 2023 that required rework, which continues to progress steadily. We still expect to finish the rework and shut down the shadow factory by year-end with most of these airplanes delivering this year.”
2. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders In Q2 2024: 85
Tesla, Inc. (NASDAQ:TSLA) is the world’s biggest electric vehicle manufacturer, which also operates in other industries such as energy storage. As of Q2 2024, EVs accounted for 84% of the firm’s revenue. This reliance on electric vehicles means that Tesla, Inc. (NASDAQ:TSLA) stock struggles when global demand for EVs is slow. This has also been the case recently, as the stock is down by 21% over the past 12 months as high interest rates and depressing purchasing power coupled with margin erosion from competition in China have negatively impacted the global EV industry. However, Tesla, Inc. (NASDAQ:TSLA) enjoys substantial competitive advantages in the form of its global manufacturing base and machine learning for autonomous driving. It produced 1.85 million EVs in 2023 to enjoy substantial economies of scale and has access to 1.3. billion miles of training data for autonomous driving. Additionally, Tesla, Inc. (NASDAQ:TSLA)’s energy storage revenue doubled to $3 billion in Q2, allowing to stem some of the revenue bleeding from the EV slowdown.
Baron Funds mentioned Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter. Here is what the fund said:
“As discussed in the Fund’s prior shareholder letter, the fears about Tesla’s products were misplaced. Instead of the company being exclusively dependent on limited vehicle models and software advancement, the company announced it will more rapidly introduce products that appeal to a wider audience. It also demonstrated that its price reductions were the result of efficiencies rather than only to spur demand. Margins exceeded expectations. And the company’s integration of its hardware with proprietary AI software should facilitate full self-driving capabilities and subsequent new revenue streams. This integration of hardware with software creates a dynamic growth company as it more fully explores its potential with Optimus, humanoid robotics. The combination of these catalysts resulted in Tesla’s stock increasing meaningfully and rapidly in the second half of the quarter. This stock price momentum has continued into the next period”
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q2 2024: 179
NVIDIA Corporation (NASDAQ:NVDA) is the world’s largest and most valuable GPU designer which also has exposure to the tangential data center networking, autonomous driving, and consumer and professional graphics industries. Its high performing GPUs have allowed NVIDIA Corporation (NASDAQ:NVDA) to become the third most valuable company in the world in terms of market capitalization. Its GPUs are one of the hottest commodities in the world, which provides the firm with a wide moat. However, their short supply and the rush in the industry to implement AI software have also forced companies to look for alternatives to NVIDIA Corporation (NASDAQ:NVDA)’s products. This has seen firms like OpenAI work with Broadcom to design NVIDIA Corporation (NASDAQ:NVDA) GPU alternatives. Additionally, the firm can see stricter action by the US government for purported abuse of market power as well as an AI slowdown or a GPU glut to create further headwinds for NVIDIA Corporation (NASDAQ:NVDA)’s shares that have lost 23% since mid June. However, the firm’s key competitive advantages because of its strong product performance and established demand for its products make NVIDIA Corporation (NASDAQ:NVDA) less risky than most of the stocks on our list.
Artisan Partners mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter. Here is what the fund said:
“NVIDIA’s year-to-date dollar value increase is $1.8 trillion. That’s equivalent to the 2023 increase in US GDP, which is, of course, representative of the collective economic efforts of about 330 million people. NVIDIA’s market cap is now $3 trillion. So is the GDP of France.
Does this make any sense? We wish that we could definitively say that it doesn’t, given that we don’t own NVIDIA. But the answer is more complicated. The growth in revenue and profits at NVIDIA has been stunning. In the calendar year 2020, its revenue was about $17 billion. Estimates for 2024 are around $120 billion. Operating profit is projected to reach about $80 billion in 2024 versus $4.5 billion in 2020. NVIDIA’s revenue essentially represents the capital spending of a small number of very profitable, very cash-rich technology companies buying up the processors necessary to power artificial intelligence (AI) software programs. It’s an AI landgrab. In order for NVIDIA to sustain these levels of revenue or grow them from here, these AI investments must start to generate an ROI for those splashing out $120 billion a year. And if not generating an ROI in the near term, those companies must at least see the prospect of an ROI, a clear sustainable competitive advantage or a moat of some kind.”
NVDA tops our list of high risk and high reward stocks. But our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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