“Finding the next big-cap tech stock” is a popular catchphrase on Wall Street. But actually finding such unknown tech stocks before they become popular is very difficult. The tech sector is dominated by a few giants, and up-and-coming startups often get acquired quickly by these behemoths. However, this doesn’t mean there aren’t opportunities out there for massive returns. If you get lucky, and pick companies with a promising outlook, 100X returns are certainly possible (there are plenty of historical examples to point to).

Such tech startups could see this kind of growth only if they exceed expectations consistently. Landing big contracts in the coming years is key, and these companies will need to see the adoption of their niche technologies take off. In my opinion, this is akin to striking gold. Such overlooked opportunities are extremely rare, but potentially lucrative beyond imagination.

Of course, I would caution against investing a significant amount in these speculative plays for obvious reasons. These are stocks that carry substantial risk and could just as easily implode.

With that said, here are three unknown tech stocks to consider for your portfolio’s speculative bucket.

MultiSensor AI Holdings (MSAI)

MultiSensor AI (NASDAQ:MSAI) uses AI-powered software to predict asset reliability issues and manufacturing output deviations. Its financials have been doing terribly, and are worse by almost every metric compared to 2021. That said, a rebound seems to be underway. Its quarterly results show promising momentum. Revenue increased 132% year-over-year to $2.3 million. That’s surely noticeable, but what really stands out is the incredible 450% spike in annual recurring revenue to $2.5 million.

This company is still operating at a loss, but MultiSensor AI seems to be executing well on its AI-driven industrial monitoring answers. If this AI-related company can maintain its top-line growth rate and make the most of its cloud platforms, the path toward consistent upside could emerge sooner than anticipated.

Notably, analysts expectations are very bullish with this name. The company’s earnings per share are expected to swing to positive levels next year and then expand by 56% in 2026. You’re paying just 7-times estimated 2026 earnings at these levels.

Unusual Machines (UMAC)

I am very bullish on drone companies right now. Modern warfare is now heavily drone-dependent, and this has kicked off an arms race of sorts between countries. China dominates this space presently, due to its well-established manufacturing base which was already making thousands of drones before they were widely used in conflicts. However, there are small Western alternatives I think are worth betting on for when the government pushes to bridge this gap.

Unusual Machines‘ (NYSEMKT:UMAC) recent quarterly results provide an early look at where this new publicly-traded drone maker may be headed. The company’s $0.6 million in revenue and 33% gross profit margin for the period following their recent acquisitions, though modest, only represent around 45 days of activity. This company was pre-revenue before, so I expect numbers to surge from these low levels, particularly when the company has a whole quarter to work with.

Unusual Machines’ real potential lies in the strategic shift toward serving an important customer – the U.S. military. As the defense industry looks to domestic options for non-Chinese-made drones due to new guidelines, Unusual Machines’ American-made vehicles that meet these standards have them poised for massive growth.

The company’s first defense product is on track for release next month and will soon undergo an important evaluation for use. This could potentially open the door to significant contracts from the country’s defense agencies.

However, investors should also remember that sales to the military typically fluctuate around the end of the fiscal year in September. Sustained growth will still depend on the continuing success of the consumer drone market. It’s a small company, but if it takes off, multi-bagger returns are certainly in the cards.

Skkynet Cloud Systems (SKKY)

Skkynet Cloud Systems (OTCMKTS:SKKY) is a company that specializes in real-time data communication for industrial systems. It also offers services to help companies move data across data centers. So, with the current data boom going on, I have a strong conviction in the stock.

Skkynet delivered an impressive first quarter, with record revenue growth of 28% year-over-year to $630,536. This robust top-line growth, coupled with the company’s swing to profitability with a net income of $23,951, shows the increasing demand for data-related services, especially in the industrial sector. This small-cap company is very well-diversified across geographic segments for its size.

Notably, Skkynet is also about to launch its most ambitious software release yet. This release will feature enhanced security and performance capabilities tailored to enterprise needs. I think this is the most important catalyst to consider right now.

The company has a strong cash position and proven product-market fit. Accordingly, strong execution could unlock substantial long-term value in this niche market. The profits here are what really makes me bullish, since the software sector is riddled with loss-making dilutive startups. If Skkynet’s software release gets more attention, I think multi-bagger returns are very likely.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. 

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.