There finally seems to be light at the end of the tunnel for growth stocks. As we head into 2024, the Nasdaq index has steadily begun recovering. While it still has a way to go before reaching its 2021 peak, I believe it’s only a matter of time. The economy is showing positive signs as well – strong GDP growth, low unemployment, and expected interest rate cuts in 2024 all point to sunnier days ahead.
In this bullish environment, now could be the perfect time to take positions in high-potential growth stocks before they take off. I’ve compiled a list of seven top growth stocks that I believe are poised for massive gains in 2024. Some are still undervalued after last year’s selloff and are ripe for a recovery, while others managed to power through the uncertainty and carry strong momentum into the new year.
Of course, the market is still susceptible to a black swan event, and growth stocks carry higher risk. But historically, periods of recovery after major sell-offs have led to especially lucrative gains for those brave enough to buy when others are fearful. I believe 2024 will be no different.
QuickLogic (QUIK)
As the hype around AI and machine learning cools in some sectors, QuickLogic (NASDAQ:QUIK) continues to shine. This fabless chipmaker has been landing major clients left and right as companies and governments rush to integrate AI capabilities. Sales and profits are surging as a result. In just the past year, the stock has soared over 161, yet it still trades at a forward P/E of just 38 based on 2024 projections.
With EPS poised to more than triple next year per analyst estimates, I believe QuickLogic remains significantly undervalued. The growth trajectory here is explosive, thanks to the sheer demand for optimized AI chips. As one of the leading fabless designers in this space, QuickLogic finds itself in the right place at the right time to capitalize. Plus, the company has a history of comfortably beating earnings expectations.
I’m thrilled to see the stock finally getting some recognition. The catalysts are obvious – global AI chip demand is experiencing parabolic growth. QuickLogic’s specialization in low-power optimized designs places its offerings in hot demand across sectors like automotive, mobile, and IoT. As profits continue to impress, investors will clamor for this growth stock.
Li Auto (LI)
As U.S. electric vehicle makers stumble with production delays, losses, and extreme dilution, Li Auto (NASDAQ:LI) continues humming along at an impressive clip. The Chinese manufacturer grew revenue by a whopping 271% last quarter. Bottom-line expansion hit 272% over the same period last year. Unlike rivals, Li Auto is actually profitable while growing leaps and bounds.
Not only that, Li Auto outsold Tesla in October 2023 to become the EV sales leader in China. The company’s hybrid offerings resonate strongly with Chinese consumers thanks to competitive pricing and quality. Li Auto now commands a 4.5% share of China’s EV market – a remarkable achievement.
Despite the blistering growth, LI stock trades nearly 30% off its August peak. Expanding gross margins and surging deliveries make Li Auto ripe for multiple expansions. As Chinese regulators renew EV subsidies next year, demand stands to rise higher. I believe the current entry point won’t last long. Li Auto remains my top EV startup pick because of its solid execution and immense growth prospects in the years ahead. Buckle up for liable gains!
Lasertec (LSRCY, LSRCF)
I’ve been bullish on Lasertec (OTCMKTS:LSRCF, OTCMKTS:LSRCY) for months, first recommending the stock in June 202. Since then, shares have continued marching higher, gaining nearly 70%. Yet, I still believe the party’s just getting started for this Japanese manufacturer of chipmaking equipment.
My bullishness stems from surging capital expenditures by semiconductor fabricators specializing in AI, ADAS, and other advanced chips. All next-generation technologies rely on advanced lithography for optimized performance – exactly Lasertec’s specialty. With over 90% global market share in EUV mask inspection tools, Lasertec is perfectly positioned to ride the ongoing AI chip boom.
Chip manufacturers are desperate to get their hands on these tools – supply simply can’t keep up with demand. As sales and profits surpass estimates, I expect shares to keep up their momentum through 2024 and beyond.
The AI revolution is still early, so the chip explosion should last for years. Thus, Lasertec’s dominance in a critical fabrication niche makes it one of the best ways to play this trend.
Coupang (CPNG)
E-commerce stocks endured a rough 2022 and 2023, but the tides are shifting as we head into 2024. Coupang (NYSE:CPNG) has borne the brunt of the sector selloff, with shares plunging over 60% from its 2021 IPO price. However, this top South Korean e-tailer looks severely oversold at just 1.2 forward sales.
Analysts forecast 74% EPS growth next year and 16% revenue expansion annually over the next 3-5 years. With muted expectations, Coupang can handily beat projections as online shopping activity picks back up. South Korea’s e-commerce penetration still lags behind most developed nations, offering immense runway for growth.
Coupang is not resting on its laurels, either. The company is launching new verticals like travel and dining. Same-day delivery and competitive pricing also promote incredible customer loyalty – key in recession-wary times.
The market has left Coupang for dead, but I believe a comeback looms in 2024.
Enphase Energy (ENPH)
Like other high-octane growth stories, Enphase Energy (NASDAQ:ENPH) lost its shine amidst the EV market carnage. Shares have plunged nearly 76% from 2022 peaks as part of the mass EV and clean energy exodus. But over the last month, ENPH has charged 72% higher off bear market lows. I think a comeback is just getting started.
No doubt – revenue growth has slowed sharply after years of hyper-expansion. Margins remain enviable, though, with Enphase having net margins above 86% of industry peers. The energy storage pioneer also typically guides conservatively.
With the Fed projected to cut rates in 2024, investors should regain their appetite for pricy growth stocks. This could likely spark a renewed rally in Enphase. I believe clean energy demand will continue rising regardless of near-term production headwinds.
Sociedad Quimica Y Minera De Chile (SQM)
It’s been a rollercoaster ride for lithium stocks like SQM (NYSE:SQM). After surging to record highs in 2021 and early 2022, SQM has plunged over 50% on easing lithium prices and demand concerns hampering EV growth. But with strong battery demand over the long term, I think the selloff leaves SQM shares attractively valued.
SQM boasts leadership in low-cost lithium production, fueling an enviable 26% net margin even after the price pullback. Meanwhile, lithium demand is slated for more growth this decade as EV adoption rises. With prices normalizing, automakers should accelerate EV investments again. By 2024, many catalysts line up favorably for lithium stocks – stable rates, recovering economies, EV model launches, and more.
As the largest lithium miner trading at just 7.6 times forward earnings, SQM offers a compelling risk/reward profile during this temporary slump. The current calm won’t last forever, though. When lithium demand surges again, SQM will be off to the races.
Riot Platforms (RIOT)
As Bitcoin (BTC-USD) continues marching towards the coveted $100K mark, Riot Platforms (NASDAQ:RIOT) offers leveraged exposure to crypto upside. This company has rapidly expanded its mining operations to capitalize on Bitcoin’s next ascent. Thanks to industry-leading low mining costs, RIOT generates immaculate profitability.
In April 2024, the next Bitcoin halving event should send crypto prices soaring based on historical trends. With market dynamics lining up favorably again, Bitcoin could retest its former peak above $68K. As profits get halved for miners, efficient operators like Riot Platforms with the lowest energy costs will win market share. It mines each BTC at a cost of just $5,537. Compare that with the price today!
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.
Artificial Intelligence, Consumer Discretionary, Automotive, Battery, Retail, E-Commerce, Electric Vehicles, Energy, Renewable Energy, Semiconductor, Solar, Technology
