7 Hypergrowth Stocks Pointed to Deliver 1000% Gains By 2025

7 Hypergrowth Stocks Pointed to Deliver 1000% Gains By 2025

Discovering stocks with the potential for hypergrowth and a remarkable 1,000% upside in today’s market can be quite challenging. The recent surge in interest in artificial intelligence has absorbed a significant portion of speculative capital that would otherwise have been directed towards emerging technology leaders. Additionally, with the Federal Reserve’s strong focus on curbing any remaining inflationary pressures, Wall Street’s primary obsession has shifted from growth to profitability.

However, there is good news: not every corner of the market has received this memo. Some remarkable stories of sustained growth continue to trade at undervalued levels, either because they lack the current buzz or haven’t yet conformed to the profitability standards. Given another two to three years, these companies have the potential to yield impressive returns, possibly as much as tenfold, once the market fully recognizes their substantial potential.

Let’s explore the areas of opportunity that investors should consider at this time.

1. CleanSpark (CLSK)

Bitcoin (BTC-USD) may not align with everyone’s investment preferences, but Bitcoin mining companies present a unique opportunity in today’s market. With the Bitcoin halving event on the horizon in 2024, coupled with potential Federal Reserve interest rate reductions, the environment is becoming increasingly favorable for mining stocks such as CleanSpark (NASDAQ: CLSK). Following its recent correction, CLSK stock now boasts substantial potential for significant gains.

In its most recent quarter, CleanSpark achieved a remarkable 47% year-over-year revenue growth, totaling $45.5 million, primarily fueled by the expansion of its hash rate. Notably, the company also reported an impressive adjusted EBITDA of $13.3 million, marking substantial growth compared to the previous year. CleanSpark has established itself as a leader in the mining industry, with a Bitcoin production rate exceeding 5,600 BTC annually, showcasing its superior mining capabilities.

The company’s recent announcement of fully funding its 16 exahash expansion removes any doubts about its growth trajectory. In the coming months, CleanSpark will operate with a fleet of over 150,000 state-of-the-art miners, solidifying its position as one of North America’s largest mining operations. Furthermore, CleanSpark’s aim to achieve industry-leading margins by targeting a record fleet efficiency near 25 tools per terahash positions it for exceptional profitability.

Predicting the future earnings of a crypto-related company like CleanSpark can be challenging due to the inherent volatility of the crypto market. Nevertheless, CleanSpark provides a strategic avenue for gaining exposure to Bitcoin in anticipation of the halving event, all without direct cryptocurrency exposure. The participation of renowned institutions like BlackRock and Vanguard underscores the long-term potential of this investment. While Wall Street analysts anticipate a 165%+ upside over the next year, it’s worth noting that CleanSpark has the potential to yield gains exceeding 1,000% or more if Bitcoin experiences significant price increases.

2. Enphase Energy (ENPH)

The solar industry holds significant growth potential in the coming years, and Enphase Energy (NASDAQ: ENPH), a prominent inverter supplier with involvement in solar, battery storage, and EV charging sectors, appears well-positioned to capitalize on this long-term trend.

In the second quarter, Enphase achieved an impressive 34% year-over-year revenue growth, amounting to $711 million, driven by robust global demand for its IQ8 inverters. The company has been steadily expanding into new European markets and is gearing up for upcoming launches in emerging regions like Brazil. Additionally, Enphase secured its first software contract for 3D mapping, affirming its strategic investments in diversifying its ecosystem.

An especially noteworthy achievement was the company’s gross margin, which reached 46% in the last quarter. With operating expenses consistently around 14% of revenue, Enphase is delivering strong growth with healthy profit margins. The company anticipates a robust second half as it ramps up IQ8 shipments and introduces its new IQ Battery 5P to various international markets. According to analysts, sales and earnings per share have the potential to double by the close of 2025.

Despite challenging short-term conditions in the U.S. solar market, Enphase maintains a clear path for growth. Its long-term growth drivers include factors like escalating electricity rates, concerns over climate change, and the increasing adoption of electric vehicles. Given these considerations alone, it’s evident that there is substantial growth potential ahead.

If Enphase reaches the upper end of its 2025 projections, reaching a market capitalization of $170 billion is within reach. Personally, my price target stands at $300, representing a significant upside potential, although not quite reaching the 1,000% mark. However, it’s important to note that catalysts like further government subsidies can’t be completely ruled out, potentially providing additional momentum to the company’s stock price.

3. Luminar Technologies (LAZR)

Luminar Technologies (NASDAQ: LAZR) presents an intriguing opportunity as a high-growth company, primarily due to its leading position in the LiDAR market. LiDAR technology offers advanced sensing capabilities superior to radar and cameras, making it a crucial technology for today’s autonomous vehicles. While the high costs of LiDAR technology had deterred many automakers in the past, significant cost reductions have now rekindled interest in its adoption.

In its most recent quarter, LAZR achieved an impressive 63% annual revenue growth, reaching $16.2 million. The company’s order book continued to expand in Q2, keeping it on course to meet its ambitious $1 billion growth target for 2023. Notably, automakers are increasingly presenting Luminar LiDAR as a premium feature and actively marketing it to consumers. This underscores the significance of LAZR’s technology and its potential to gain long-term traction with end users.

On the product front, Luminar remains on schedule to commence series production of its Iris LiDAR by the end of 2022. Coupled with software deliveries and the development of next-generation products, this positions the company for substantial revenue growth starting in 2024 and extending beyond, as automakers launch vehicles powered by Luminar’s technology.

Despite the company’s elevated price-sales ratio, there is still significant potential for a 1,000% increase in value once Luminar successfully translates its multi-billion dollar order book into substantial production revenue over the next two to three years.

4. Opera (OPRA)

Opera Limited (NASDAQ:OPRA) Initially, I was cautious about the stock, warning that it might continue to decline. However, with OPRA stock having dropped more than 30% since then, my perspective has shifted towards optimism. I now believe that the current entry point presents significant potential for both short and long-term gains in this underappreciated growth stock.

Opera recently released its Q2 earnings, which exceeded expectations in terms of revenue but fell short on earnings per share, coming in at 15 cents, missing estimates by 2 cents. Nevertheless, revenue of $94.13 million surpassed expectations by $2.47 million. Notably, the company achieved nearly 21% year-over-year revenue growth, marking its tenth consecutive quarter with over 20% expansion in the top line.

Crucially, Opera has been successfully transitioning its user base towards higher average revenue per user (ARPU) western markets, now constituting 15% of its total user base. Consequently, annualized ARPU has surged by 25% compared to the previous year, reaching $1.17. Given that western markets still offer significant room for ARPU growth for OPRA, there is considerable potential ahead.

Management also highlighted promising developments with Opera’s AI browser solutions, including Aria. Early data suggests notable increases in user engagement time and search queries, validating the substantial opportunity in AI. Being the first browser to incorporate a free, in-house developed AI solution, Opera One has a significant competitive edge over pre-installed browsers, which could greatly enhance new user acquisition.

For all these reasons, I am confident that OPRA presents substantial upside potential from its current levels. Analysts have a consensus price target of $22.50 within the next year, implying a 62% increase. Clearly, if you are considering a multi-year investment horizon, this upside potential could be significantly higher.

5. Acme Research (ACMR)

Acme Research (NASDAQ: ACMR) might appear to carry some risk due to its exposure to China and Taiwan, which are currently dealing with geopolitical tensions. However, it’s essential to note that ACMR stock maintains a reasonable forward price-earnings ratio of just 12 times. Geopolitical uncertainties are a common factor when investing in semiconductor stocks, even with well-regarded companies like Nvidia (NASDAQ: NVDA). For Acme, much of the potential China-related risk seems to have already been factored into the market’s pricing.

Furthermore, ACMR continues to perform strongly on the operational front. The company recently reported record-breaking revenue and earnings per share, driven by robust demand trends. Revenue experienced a remarkable nearly 40% year-over-year surge, reaching $144.6 million, surpassing expectations. This growth was primarily fueled by increasing investments in mature nodes by ACMR’s Chinese customers. Additionally, the company is consistently expanding its market share and entering new product segments, such as semi-critical cleaning tools.

With its extensive range of cleaning tools and expertise in copper plating, Acme has solidified its position as the leading domestic supplier of cleaning tools and copper plating in China. Virtually every domestic semiconductor manufacturer counts Acme as a customer. Although China’s overall spending on wafer fab equipment may stabilize, ACMR anticipates continued investments in mature node capacity, including 28nm and 45nm. This sets the stage for sustained growth as China intensifies its efforts to enhance its domestic chip capabilities.

Internationally, Acme has made significant strides, securing its first European evaluation order from a major manufacturer. The company is also expanding its facilities in China, Korea, and the United States to support its global initiatives. With a remarkable revenue compound annual growth rate (CAGR) of over 47% over the past three years, ACMR has a proven track record of successful execution.

In my view, ACMR stock currently accounts for the geopolitical concerns and offers exceptional value relative to its growth potential. If ACMR stock were to trade in line with peer multiples, it could deliver significant upside. Gurufocus, for instance, envisions a fair price of $90 by 2026, which is a notable projection worth considering.

6. ZoomInfo (ZI)

ZoomInfo (NASDAQ: ZI) shares have experienced a gradual decline over the past year, largely influenced by negative sentiment surrounding near-term growth slowdown and lingering valuation concerns. However, with the forward price-earnings multiple now standing at just 18 times, it appears that much of the pessimism has already been factored into the stock price.

Although revenue growth is anticipated to moderate to 8.8% next year from the current year’s 12%, analysts foresee a resurgence in growth over the long term. Consensus estimates project growth rates of 16.3% in 2025 and 21.1% in 2026 as conditions improve.

Additionally, both short interest and insider selling have significantly decreased, suggesting that even bearish sentiments may be waning. ZoomInfo’s profitability remains a notable strength, as the company achieved an impressive 41% adjusted operating margin in the midst of a challenging demand environment in the last quarter.

With its data platform enhancing various aspects of business operations, from customer relationship management to marketing automation and artificial intelligence, ZoomInfo offers indispensable insights for go-to-market teams. Its capacity to boost sales efficiency and return on investment will only become more valuable should macroeconomic uncertainty persist. While business confidence may currently be fragile, ZoomInfo has strategic options to explore, such as simplifying pricing and packaging for small and medium-sized businesses, to reignite growth when conditions improve.

In my view, ZI stock is well-positioned for a substantial recovery rally. The recent quarter reaffirms ZoomInfo’s capability to achieve efficiency gains and expand margins even during challenging periods. For long-term investors, these shares present an appealing proposition in terms of value.

7. UiPath (PATH)

This AI automation company has lagged behind the recent surge in generative AI, possibly because Wall Street has been primarily focused on AI’s potential impact on white-collar positions. However, I believe that robotic process automation is better positioned for long-term growth. While AI poses a threat to professions like lawyers and accountants, blue-collar jobs face an even greater risk of displacement over the next 5-10 years.

Interestingly, AI and automation are now affecting white-collar jobs first, instead of the anticipated impact on blue-collar factory workers. Nonetheless, there is still strong demand for “blue-collar AI,” as evidenced by the tight labor market and the thriving housing sector, which relies heavily on physical construction work. UiPath plays a critical role by providing the essential software for efficient enterprise-scale automation.

UiPath’s (NYSE: PATH) growth trajectory has experienced some moderation due to the volatile macroeconomic environment. However, the substantial potential offered by this stock is just beginning to unfold. With improving margins and cash flow, UiPath has the means to reignite its growth through initiatives like its recent partnership with Salesforce (NYSE: CRM). Despite facing demand challenges, the company still achieved an impressive 28% annual recurring revenue (ARR) growth in the last quarter.

UiPath offers a comprehensive automation toolkit for enterprises, including advanced features like process mining and document understanding, which go beyond basic robotic process automation (RPA). While near-term uncertainty persists, PATH stock has the potential to deliver significant gains over the next five years as businesses integrate AI and automation into their operations. For investors with patience, PATH stock presents an attractive opportunity in the field of AI automation.