It’s a new year and that means retail investors will be on the hunt for the next meme stock sensation. It’s been years since the iconic GameStop (NYSE:GME) short squeeze of 2021 gave rise to the term. Yet the r/WallStreetBets crowd is still on the hunt for a similar company that can be sent to similar levels. Other popular Reddit stocks like AMC Entertainment (NYSE:AMC) and Bed Bath & Beyond have briefly surged and set the social media wires blazing, only to quickly fizzle out and fall back to where they belong.
For all the speculation from retail traders, there’s no denying that many popular meme stocks end up disappointing the investors who hype them up. According to Brian Ford, Truist’s head of financial wellness, meme stock investing should be classified as speculating. He describes this as “simply betting money on a highly unpredictable economic venture.”
While many popular Reddit stocks are highly risky investments, sometimes stable companies can gain popularity on the platform. Leading tech favorites such as Tesla (NASDAQ:TSLA) and Nvidia (NASDAQ:NVDA) often rank among the most popular stocks on the platform. Both companies are facing an uncertain future, thanks to their high valuations. But a few other Reddit stocks have been rising in popularity lately. They could end up being among the year’s biggest winners.
Top Reddit Stocks: Advanced Micro Devices (AMD)
The artificial intelligence (AI) boom isn’t going to slow down in 2024. Experts such as InvestorPlace senior investment analyst Luke Lango are less bullish on Nvidia. However, that means other companies are poised for significant growth. Advanced Micro Devices (NASDAQ:AMD) should be at the top of all investors’ watchlists. This Nvidia rival has been rising steadily since it announced that multiple tech sector giants had agreed to purchase its Instinct MI300X chip. When Silicon Valley chooses you over Nvidia, it’s hard for Wall Street not to be impressed.
As InvestorPlace contributor Chris MacDonald reports, more catalysts are on the horizon for AMD in 2024. This list includes new chips that could further cut into Nvidia’s market share. It seems that retail investors have realized that AMD could be the next Nvidia. It recently passed its chief rival on ApeWisdom’s list of most discussed names on r/WallStreetBets. This is a key reminder that not all popular Reddit stocks are on the verge of bankruptcy.
Riot Platforms (RIOT)
The crypto rally that carried Bitcoin (BTC-USD) and its peers to new heights late in 2023 isn’t slowing down either. This means that crypto stocks are rising as well. At the forefront of this movement is Riot Platforms (NASDAQ:RIOT), a company that bills itself as “building the world’s leading Bitcoin-driven infrastructure platform.” Put in simpler terms, it’s a leading Bitcoin miner that offers investors valuable exposure to the booming market without actually purchasing any crypto. And despite an impressive surge late in 2023, RIOT stock is currently on a dip, creating a tempting point of entry for investors.
As Navellier reports, Riot currently holds over 7,350 Bitcoins and has been reaping significant profits from the crypto’s recent surge. In November 2023 alone, it produced 552 Bitcoins after reporting 458 during the previous month. For as long as the crypto rally presses on, Riot will be in an excellent position to continue riding the wave to the top. It has also optimized AI and machine learning through its RiotX algorithm. This makes it a double-edged sword as interest in both crypto and AI continues to surge.
Top Reddit Stocks: Rivian (RIVN)
Sometimes, a name gains traction on r/WallStreetBets that has no business being ranked among meme stocks. Rivian (NASDAQ:RIVN) is a growth stock with significant potential that spent the past month rising steadily. The electric truck maker is a favorite among Wall Street analysts. Since the year began, it has received “buy” ratings from UBS, Truist and Barclays. It currently holds a “moderate buy consensus” on TipRanks, with 13 out of 21 analysts rating it as a buy. That’s much better than typical Reddit stocks. Both GameStop and AMC are rated as “moderate sells.”
Even so, Rivian has been rising in popularity on r/WallStreetBets lately, and as of this writing, the sentiment is 63% positive. That could be because smart investors have realized that the company has better sales growth than Tesla. On top of that, it is primed to benefit from the U.S. government’s pending tariffs on Chinese EVs. RIVN stock is currently on a dip after the company missed on fourth-quarter delivery estimates, but for investors, that just means a chance to grab more shares before they rise again.
On the date of publication, Samuel O’Brient 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.
