While digital innovation is all the rage, the underlying companies’ lofty valuations incentivizes a closer look at tech penny stocks. Of course, this sector presents extreme risks: you don’t want to spend any more money here than you can afford to lose. Quite frankly, you probably will lose.
That said, unless you own a time machine, you’re not going to be able to buy shares of Nvidia (NASDAQ:NVDA) for under ten bucks. Those days are long gone. What you can do is to find the next NVDA – or at least something with its upside potential.
Yes, it’s easier said than done. And yes, it’s a wildly risky proposition. Keep in mind, though, that NVDA was once a sub-dollar entity. On that note, below are compelling tech penny stocks to gamble on.
top Tech stocks to watch : Double exposure of man's hands holding and using a phone and financial graph drawing. tech stocks
Source: Peshkova / Shutterstock
A compelling but simultaneously controversial idea for its defense and aerospace implications, Emcore (NASDAQ:EMKR) is a leading provider of sensors and navigation systems. Per the company’s Form 10-K disclosure, Emcore is a fully vertically integrated manufacturing firm, allowing it to respond quickly to market demand. Further, with geopolitical flashpoints rising in scope and scale, EMKR stock should see tremendous relevance.
In particular, Emcore’s navigation and stabilization systems may integrate well with commercial and military aircraft. This utility includes unmanned autonomous vehicles, which have become cornerstones in the Ukrainian conflict. With this military invasion rapidly changing our understanding of modern warfare tactics and strategies, EMKR stock may eventually rise in prominence.
That’s what analysts apparently have in mind, rating shares a unanimous strong buy. Also, their average price target stands at $1.18, implying over 187% upside potential. If you don’t mind the defense/aerospace angle, EMKR makes for an enticing candidate for tech penny stocks.
PowerFleet (PWFL)
a visual representation of the internet connections crisscrossing the sky above a city
Source: Shutterstock
Billed as a global leader of Internet-of-Things (IoT) solutions, PowerFleet (NASDAQ:PWFL) specializes in securing, controlling, tracking and managing high-value enterprise assets. These include industrial trucks, tractor trailers, intermodal shipping containers, cargo and vehicle and truck fleets. Further, the company’s Form 10-K explains that it provides valuable business intelligence for entities seeking operational efficiency improvements.
Fundamentally, PWFUL ranks among the top tech penny stocks thanks to its rapidly burgeoning ecosystem. According to ResearchAndMarkets, the global sector for IoT-based analytics reached a valuation of $24.8 billion in 2022. By 2030, the segment could see expansion to $166.5 billion.
Here’s the thing – PowerFleet prints a market capitalization of only $111.3 million. Thus, by grabbing an appropriate size share of the market, PWFL stock could skyrocket. Analysts appear to agree with the thesis, pegging shares a moderate buy with a $5 price target. This forecast implies over 67% upside potential. Further, the highest price target is $6, which sees a doubling of value.
Lantronix (LTRX)
Communication and networking in a digital society. night background. Future city or smart city concept.
Source: Banana Oil / Shutterstock.com
A global industrial and enterprise IoT provider, Lantronix (NASDAQ:LTRX) targets high-growth applications in specific verticals. These include smart grid, intelligent transportation, smart cities, and artificial intelligence data centers. Per the company’s Form 10-K disclosure, Lantronix commands a long history of networking and video processing competencies. As well, it offers services tied to cloud and edge computing.
Amid a difficult economic environment, many businesses are attempting to cut costs. Beyond just the obvious solution of layoffs, they’re seeking streamlining of their operations. Lantronix aims to accelerate this directive by reducing the complexities of tech deployments. It accomplishes this task through offering its customers customizable solutions that address each layer of an IoT stack.
For stakeholders of LTRX stock, the main catalyst centers on the growth of the enterprise IoT market. Per Grand View Research, this space could expand at a compound annual growth rate of 14.1% from 2024 to 2030. At the forecast culmination, the ecosystem may be worth $1.42 billion.
Finally, analysts rate LTRX a unanimous strong buy with an $8.25 price target, implying nearly 102% upside potential.
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.
On the date of publication, Josh Enomoto did not have (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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
