While cryptocurrencies may attract risk-tolerant investors, their volatility and unpredictable valuation can make them challenging. These assets frequently fluctuate based on market trends and uncertain future potential regarding scarcity or usefulness.
Instead of pursuing the latest trending cryptocurrencies, consider three tech stocks that hold speculative appeal: CoreWeave (CRWV 3.90%), D-Wave Quantum (QBTS 13.18%), and QuantumScape (QS 3.64%). These stocks carry their own risks but are grounded in more robust business models with clearer future trajectories.
CoreWeave
Initially an Ethereum mining venture, CoreWeave pivoted away from cryptocurrencies in 2018 to utilize its extensive graphics processing unit (GPU) inventory in developing an AI-focused cloud infrastructure business. After investing approximately $100 million in Nvidia’s H100 data center GPUs in 2022, it established a niche with a dedicated AI platform that is significantly faster and more cost-effective than larger cloud competitors.
Leveraging its GPUs as collateral allowed CoreWeave to secure additional funding, attracting investments from notable companies like Nvidia, Cisco, and PureStorage. The number of its data centers grew from three in 2022 to 33 in the latest quarter. Its revenue skyrocketed from $16 million in 2022 to a projected $1.92 billion in 2024, with expectations of doubling to around $5 billion by 2025. Despite its stock price surging since its recent IPO, the valuation remains relatively high compared to projected sales.
D-Wave Computing
D-Wave focuses on quantum annealing technologies that enable companies to optimize various business operations, such as schedules and supply chains. By utilizing qubits, it allows for simultaneous data processing, significantly enhancing efficiency over conventional computers that operate on binary bits.
D-Wave’s core Leap platform integrates with larger public cloud systems, optimizing operational processes to minimize power consumption. With over 100 companies, including Deloitte and Mastercard, already leveraging its services, D-Wave stands out in the emerging quantum-computing sector. Analysts anticipate D-Wave’s revenue growth from $9 million in 2024 to $74 million by 2027, although it may face skepticism due to its high 70 times projected sales valuation and lack of immediate profitability.
QuantumScape
QuantumScape represents another speculative opportunity, specializing in solid-state lithium metal batteries that outperform traditional lithium-ion options in thermal resistance, charging speed, and longevity, making them ideal for electric vehicles (EVs). However, it has yet to commercialize any products.
Supported by Volkswagen, QuantumScape’s forthcoming QSE-5 batteries promise less than 15 minutes of charging time and a maximum range of 500 miles—substantially better than the current average EV range and charging time. While it anticipates mass production and revenue generation starting in 2026, the company is currently upgrading its production process to enhance stability and yield. Valued at $2.4 billion, QuantumScape’s future could see significant growth if it scales successfully, potentially attracting considerable investment interest.
