Three Small-Cap Tech Stocks That Surged Over 1,000% in 2024

In 2024, we witnessed an incredible rise in specific small-cap tech stocks within the Russell 2000, each achieving gains of over 1,000% year-to-date.

An analysis focused on high-trading-volume tech stocks with a positive outlook identified three standout performers. Analysts remain optimistic about their future.

1. Rigetti Computing: YTD Gain — 1,578%

Rigetti Computing Inc (RGTI) is at the forefront of quantum computing, transforming a buzzword into a booming business through its Quantum Cloud Services (QCS) platform and advanced quantum processors.

What’s driving this surge? Rigetti’s innovative business model positions it as a key player in the quantum computing landscape. Its cloud platform is designed to work effortlessly with conventional hardware, which makes quantum technology more accessible to a wider audience. Analysts compare Rigetti to an early-stage Nvidia, highlighting its considerable cash reserves and potential for future breakthroughs.

However, it’s important to note that Rigetti is still in the early revenue stages, clocking in at $2.4 million in the third quarter of 2024, while facing significant losses. If it successfully scales its quantum technologies, the rewards could be substantial.

2. D-Wave Quantum: YTD Gain — 1,107%

D-Wave Quantum Inc (QBTS) is changing the game in problem-solving through its Quantum Computing as a Service (QCaaS) model. Its unique annealing quantum computers are adept at tackling complex logistical and financial optimization challenges, making them attractive to investors.

The strength of D-Wave lies in its application-driven focus. Its technology is being utilized in various fields, from enhancing supply chain efficiency to advancing drug discovery. With cloud-based solutions that democratize access to quantum computing, its partnerships with major industries forecast a promising future.

Yet, like many peers, D-Wave's revenue of $9.4 million remains low compared to its operating losses of $74 million. Nevertheless, investors are buoyed by its bright prospects.

3. SoundHound AI: YTD Gain — 1,064%

SoundHound AI Inc (SOUN) is riding the AI wave, having reported a remarkable 89% increase in revenue in the third quarter of 2024. The company's partnerships, such as the one with Apivia Courtage, have significantly enhanced customer interactions by reducing direct inquiries by 20%.

SoundHound is expanding its footprint in sectors like healthcare, retail, and finance, aiming to solidify its position in the conversational AI market. With analysts projecting ambitious price targets, SoundHound is demonstrating that there is ample growth opportunity within the AI sector.

Looking Ahead

From advancements in quantum computing to innovative use of artificial intelligence, these three small-cap tech stocks have delivered astonishing returns in 2024. While there are inherent risks in these evolving markets, their potential for explosive growth makes them stocks to closely monitor.

If you're an investor looking for the next big opportunity or a tech enthusiast, the futures of these companies—and their stock values—hold the promise of transformation.

stocks, technology, investment