3 Unloved Tech Stocks That Could Go Parabolic
SoundHound AI, Serve Robotics, and Plug Power could shake off the short-sellers soon.
Many tech investors like to hunt for companies that could be the next hot stock -- ones that have the potential for quick and steep rallies that defy the broad market's expectations and perhaps even their own underlying fundamentals.
Some stocks that fall into this category might be heavily shorted, a condition that sets them up for short squeezes. (If you "short" a stock, you benefit when the price falls.) Others might be irrationally underpriced relative to their growth prospects. On the occasions when such beaten-down stocks rally, the initial surges can trigger secondary "fear of missing out" (FOMO) responses among other investors that drive their shares even higher.
Two tech stocks that went parabolic over the past few years are AI darlings Nvidia and Palantir Technologies. However, both of those red-hot stocks are unlikely to replicate those multibagger gains over the next few years, particularly considering their current scales.
