Penny stocks can offer tantalizing rewards for those willing to stomach the risks. Though most fail, the few that succeed can bring massive returns. I don’t have a crystal ball, but using the latest AI assistant from Google (NASDAQ:GOOG, NASDAQ:GOOGL) called Gemini, I asked it to predict which penny stocks have a chance to skyrocket 10,000%.
Now, before going further, let me be clear – a 10,000% return is wildly optimistic, even in the speculative world of penny stocks. My goal here is not to pump up any specific stocks or make outlandish promises. However, I do think AI could point us to some interesting opportunities with significant upside potential.
The main challenge with penny stocks is sifting through the many low-quality companies to find hidden gems. There simply isn’t enough public information on most of these small firms for investors to make informed decisions. This is where AI comes in handy. It can rapidly analyze fundamentals, filings, news reports, and more to surface penny stocks that show indications of future growth.
With that said, let’s take a look!
Ebang International Holdings (EBON)
As a leading cryptocurrency mining hardware producer, Ebang (NASDAQ:EBON) is poised to benefit from the upcoming Bitcoin (BTC-USD) halving event. With miners rushing to expand capacity, demand for Ebang’s specialty equipment should surge. The company’s cash-rich balance sheet, with over 44-times more cash than debt, also gives Ebang stability even amidst crypto volatility.
While the crypto bear market dented the company’s revenue numbers, Bitcoin’s resurgence and the 2024 halving could change that narrative. As Bitcoin’s production drops while mining difficulty holds steady, miners require ever-more computing power to earn rewards. Ebang’s high-performance rigs fit that need. Though Ethereum’s (ETH-USD) shift to proof-of-stake hurt GPU sales, Bitcoin will ensure sustained demand.
And at just 0.35-times book value, Ebang may be ripe for a turnaround. Cryptocurrencies remain speculative, but their decentralization also makes their demise unlikely. With market leadership and prudent fiscal management, Ebang seems ready to capitalize on crypto’s next growth wave. If Bitcoin approaches its peak again, a significant rise for Ebang is likely.
Aemetis (AMTX)
As a leading producer of renewable fuels and chemicals, Aemetis (NASDAQ:AMTX) is well-aligned with global sustainability trends. With climate change accelerating the adoption of clean energy, Aemetis products could see surging long-term demand. And with fossil fuel reserves declining, bio-sourced replacements become ever more crucial.
However, the company’s debt does pose an immediate threat. With liabilities of $434 million against $4 million in cash, high interest rates have strained Aemetis’ finances. Dilution seems probable in 2024 as equity offerings provide relief. Thankfully, high-interest payments should ease as rates are cut. That cash flow could theoretically fund more growth.
With sales expected to double in 2024 and nearly double again in 2025, Aemetis seems poised for explosive growth as its debt burden eases. At 0.2-times 2025 revenue projections, AMTX stock looks significantly underpriced for such potential. If renewable fuel mandates tighten worldwide, exponential growth could even support triple-digit gains. However, environmental policy changes make these forecasts very speculative.
Greenpro Capital (GRNQ)
As a small consultancy focused on tech innovation, Greenpro (NASDAQ:GRNQ) occupies lucrative niches like digital assets, renewable energies, and biotech. However, limited disclosures due to its microcap status makes the analysis speculative. The company’s valuation also requires a lot of guesswork.
Still, Greenpro’s exposure to cutting-edge spaces, including crypto and carbon credits, provides huge upside if its ventures gain traction. And with minimal leverage, Greenpro can stomach some failures alongside its successes. The company’s depressed price-earnings ratio of around 4-times also suggests that the stock trades at a major discount to the company’s earnings potential.
Of course, gutsy bets on emerging tech could sour, if the hype fades. Like Aemetis, dilution may fund expansion for a while, but hurt investors in the near-term. That said, continued growth in target sectors should support revenue growth over the long haul. Greenpro’s flexibility to shift into whichever spaces show the most promise should provide investors some sense of calm.
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.