Looking for the Next Million-Dollar Stocks? Here Are Three Tech Candidates

Turning a $10,000 investment into $1 million over a decade is a tall order, with only two stocks, Nvidia and Celsius Holdings, in the Russell 1000, managing to achieve this feat recently. However, exploring new tech opportunities can be worthwhile. Below, we examine three technology stocks that could offer significant returns in the future.

Spotlighting SoundHound AI

SoundHound AI (NASDAQ: SOUN) stands out in the voice technology sector, utilizing artificial intelligence (AI) to enhance speech recognition and improve user interactions. Originally targeting the automobile market, SoundHound’s technology focused on refining in-car voice assistants. Subsequently, the company expanded into the restaurant industry, collaborating with players like Toast.

Though the automobile and restaurant sectors were successful, expanding into additional areas presents a significant growth opportunity. Recently, SoundHound acquired the AI platform Amelia, aiming to enhance its capabilities and penetrate diverse domains such as healthcare, insurance, retail, and finance—fields that each have unique terminology and interaction styles.

According to QKS Group, a technology advisory firm, the acquisition of Amelia is a strategic move to create a comprehensive voice ecosystem. If SoundHound can capitalize on this growth avenue, it could set the stage for a long-term growth trajectory, essential for a “millionaire-maker” stock.

Pinterest on the Rise

Although larger than SoundHound AI, Pinterest (NYSE: PINS) has a market cap of about $22 billion, positioning it as a player with substantial growth potential.

The platform, recognized for its unique bulletin board feature, has successfully attracted over 520 million monthly active users globally, primarily women. However, the company has a considerable opportunity to improve revenue generation from its existing user base. In comparison, Meta Platforms excels at monetizing its users, contributing to its $1.4 trillion market cap.

Like Meta, Pinterest relies on advertising for its revenue, yet it lags behind in average revenue per user (ARPU). In Q2, Pinterest’s ARPU stood at $1.64, while Meta’s was significantly higher at $11.89. Bridging this gap could propel Pinterest’s stock upward.

Despite not achieving daily engagement numbers on par with other social media, Pinterest benefits from users actively seeking inspiration for purchases. The company has invested in features like in-app checking out and recommendations, partnering with Amazon to enhance shoppability and collaborating with Google for international monetization strategies, positioning it for future growth.

Image source: Getty Images.

UiPath’s Potential in AI

UiPath (NYSE: PATH) has faced challenges this year, including a sharp decline in stock value due to lowered forecasts and the departure of its CEO. However, the reappointment of founder Daniel Dines signals a renewed focus on growth. The company aims to integrate robotic process automation (RPA) with agentic AI—technology that operates without human involvement. Nvidia has described agentic AI as the next major advance, as it streamlines problem-solving and task completion.

UiPath’s strategy includes using proven RPA tools alongside AI agents to minimize errors, referred to as “hallucinations,” where AI produces incorrect outputs. Current research indicates this issue occurs 3% to 5% of the time, highlighting the need for checks to ensure status accuracy.

With an emphasis on being a neutral software provider connecting various business applications with large language models, UiPath believes its automation capabilities grant it a competitive edge in this evolving landscape.

Recent launches at its Forward conference suggest a commitment to innovation. If the company can successfully meld RPA with agentic AI, significant growth opportunities could lie ahead.

Explore New Investment Opportunities

If you ever thought you missed the chance to invest in successful stocks, now might be your moment.

On rare occasions, our analysis team recommends “Double Down” stocks—companies expected to experience substantial growth. If you’re hesitant about missing an investment opportunity, consider these past successes:

• Amazon: A $1,000 investment in 2010 would now be worth $21,217!*
• Apple: A $1,000 investment in 2008 would have grown to $44,153!*
• Netflix: A $1,000 investment in 2004 would have skyrocketed to $403,994!*

Currently, we are issuing “Double Down” alerts for three promising companies, presenting a possibly rare investment chance.

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 28, 2024

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook, is a member of The Motley Fool’s board of directors. Geoffrey Seiler has positions in Alphabet, Pinterest, Toast, and UiPath. The Motley Fool has positions in and recommends Alphabet, Amazon, Celsius, Meta Platforms, Nvidia, Pinterest, Toast, and UiPath. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.