Google (NASDAQ:GOOG, NASDAQ:GOOGL) recently unveiled its newest and supposedly most powerful AI system yet, called Gemini. This model builds on past systems like LaMDA and Bard that have showcased impressive language and reasoning capabilities. In fact, Bard previously bested other AI stock pickers and even beat a human trader in certain benchmarks.
Now, I’m curious. Could Gemini go even further and accurately predict specific stocks primed for massive gains? Of course, no large language model has a magic crystal ball. However, we can still derive unique perspectives by prompting them to analyze markets based on the latest data.
With that in mind, I asked Gemini to recommend three penny stocks that could surge by 1,000% next year. This required multiple detailed prompts, as I had to filter out risky biotech names and companies prone to extreme dilution. But after several iterations, Gemini provided an intriguing trio of microcaps it views as having 10X potential in 2024.
Obviously, these are not guarantees, and even the most advanced AI cannot predict the future or time markets perfectly. However, I believe Gemini’s picks offer insightful angles on certain stocks Wall Street may be overlooking. The rationale behind each pick seems backed by recent financials and industry trends – the AI is new, after all.
Digihost Technology (DGHI)
Digihost Technology (NASDAQ:DGHI) is an under-the-radar crypto mining play flagged by Gemini as having 10X potential in 2024. This Canada-based miner flies under the radar with a market cap of around $50 million. But I’m bullish on several crypto miners, as Bitcoin faces multiple catalysts. Those range from a pending ETF to the upcoming halving and potential for rate cuts.
These tailwinds should propel Bitcoin (BTC-USD) and miners to new highs. As a smaller player, DGHI offers upside if cryptos run while avoiding downside if they consolidate. Profitability will likely jump exponentially once they sell more coins, as mining output is highly leveraged to Bitcoin’s price.
Yes, it’s a riskier pick. But cryptos face a constructive backdrop between inflation hedging and growing adoption. So, I’m intrigued by Gemini viewing DGHI as having a 1,000% upside.
Blink Charging (BLNK)
Blink Charging (NASDAQ:BLNK) is another riskier name with home-run potential. The crowded charging space carries risk, especially with Tesla’s (NASDAQ:TSLA) dominance. But as a first-mover focused on expansion, Blink can carve out market share in Europe and beyond.
After plummeting on dilution worries, BLNK may have bottomed. Bearishness around EV stocks brings short-term headwinds but also makes the long-term growth story more attractive. If stars align with no further dilution, BLNK could hit profitability by 2026. From there, 2027 earnings estimates put shares at just 3x forward P/E, implying a massive upside if appropriately executed.
Again, it’s speculative. But as EV adoption grows globally, the charging infrastructure build-out offers explosive growth potential. Gemini clearly sees the promise despite the risks.
QuantumScape (QS)
QuantumScape (NYSE:QS) develops next-gen solid-state batteries for EVs. Though pre-revenue, QS targets a vital and high-growth market. EV demand seems robust in the long term, even if near-term turbulence rocks valuations. Better batteries are essential for EVs to truly reach price parity with gas vehicles. QS aims to be a leader in this realm.
Profitability timelines are still long, with QS potentially turning profitable in 2028. But 2032 revenue estimates sit at $7.7 billion—dwarfing its $3.6 billion market cap today. So, if successfully commercialized, the upside seems tremendous, given the total addressable market.
Plus, execution risks can’t be ignored, given the capital intensity and research-driven nature of QS’ business. Thus, I’m cautious at current levels despite the intriguing thesis. However, Gemini highlights the promise in the industry.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
