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Inflation is coming down, the economy remains robust, and anticipated rate cuts from the Fed are among key potential drivers soaring tech stocks higher. The excitement surrounding AI advancements further fuels investor interest in these stocks, as technology continues to reshape various industries.
Of course, investors looking at growth stocks remain focused on plenty of potential headwinds. Concerns persist for both high inflation or interest rates, or the prospect of a potential recession.
Let’s peer into three hypergrowth stocks with huge potential upside worth considering right now.
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Li Auto (LI)
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Li Auto (NASDAQ:LI) is thriving, nearly doubling its stock value with further potential, according to Wall Street.
Analysts have this stock’s one-year upside potential pegged at around 30%, but that could be light. Indeed, while this stock is less-renowned than its peer of XPeng, it remains a strong contender in the Chinese EV market. The company’s Q2 deliveries soared by 202% to 86,533 vehicles, enabling a significant turnaround from losses to profits with improving margins. Li Auto has shifted firmly into positive territory.
Li Auto is on a robust growth path, marked by surging deliveries and revenue, driven by new models and retail expansion in China. In Q2 2023, the company saw a remarkable 229.7% year-over-year (YOY) revenue increase to $3.86 billion. That included a 21% vehicle margin and $1.33 billion in free cash flow. Also, they have a substantial $10.17 billion in cash reserves for further expansion and innovation. August deliveries reached 34,914 vehicles, up 663.8% YOY, indicating sustained growth and potential for the stock to rise.
Lithium Americas (LAC)
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Lithium Americas (NYSE: LAC) stock has dropped 22% in the last six months, but it’s a potential hidden gem. Trading near its 52-week low of $16.07, it could offer substantial gains in the future.
Additionally, the Thacker Pass project, valued at $5.7 billion after taxes and with a 40-year mine life, is a key asset. Anticipated annual EBITDA of $1.1 billion suggests significant returns when production commences.
Further, the company will split into two divisions, focusing on lithium projects in Argentina and Nevada. This move, supported by a $650 million investment, is expected to be completed by October. Despite a recent dip in LAC stock, its impressive 289% growth over the past five years solidifies its position as a strong player in its niche.