Investors looking to maximize their returns tend to look for stocks trading at very low prices. Think penny or small-cap tech stocks. Indeed, picking the right one can lead to eye-popping profits. Imagine buying a company for pennies and, with the right catalyst, the price skyrockets off the chart, and you’re up by quadruple digits!

While these investments have massive upside potential, high-risk, high-return tech stocks are not for the faint of heart. Stop losses aren’t reliable when prices are moving at break-neck speeds. You might even find yourself watching the markets from open to close, twitching at every slight tick in price—not exactly an ideal situation for any trader.

I always remind investors that due diligence is important in high-risk (or even low-risk) trading scenarios. You’re putting a lot on the line, and doing your research increases your chances of making a profit. 

In this article, I’ll cover three low-priced tech stocks I found in my analysis. To get my list, I screened the market using the criteria below:

• Minimum ‘buy’ rating from analysts,
• A potential upside of 250% and above.

I took the top three, then sorted the list based on the highest to lowest potential upside to ensure I got the most out of the stock. Here are the results: 

Quantum Computing (QUBT)

In the current age of technology, where AI dominates the market, quantum computing has emerged as another potentially game-changing technology. Niche companies like Quantum Computing Inc. (NASDAQ:QUBT) are starting to gain attention. The company specializes in nanophotonic technology and quantum optics.

Quantum Computing’s core nanophotonic-based technology has applications in cybersecurity, sensing, and imaging solutions. Additionally, it can be used in AI, LiDAR, and various other fields.

Quantum’s Q1’24 report paints a great picture of financial progress. Revenue reached $27,000, primarily from professional services related to its Dirac-series computers, and achieved a gross margin of 42%. Meanwhile, operating expenses decreased by 18% to $6.4 million. The savings were mainly due to an excellent 25% reduction in selling, general, and administrative expenses compared to the same period in 2023.

Although the company reported a net loss of $6.9 million, this represents a sizable improvement from the previous year’s loss of $8.5 million. This loss reduction shows the company’s efforts for better financial stability and operational efficiency are paying off.

While QUBT may have a long way to go, Ascendiant Capital Markets LLC rates it as a ‘buy’ with a 1,178% upside potential. If Quantum Computing continues to improve its financial performance, early investors might hit the jackpot. 

Porch Group (PRCH)

Known for its tagline “Vertical Software Company For The Home,” Porch Group (NASDAQ:PRCH) is a software and insurance platform specializing in homeowner’s insurance business. The company operates in two segments:

• Insurance: consumer warranty and insurance products.
• Vertical Software: software and services to mortgage and title companies. 

Porch also collaborates with reinsurance brokers like Aon to provide its customers with strong outcomes with reinsurance placements and services.

The company began 2024 with a strong first quarter, achieving 32% year-over-year revenue growth, hitting $115.4 million. It also reduced its GAAP net loss to $13.4 million (from $38.7 million) and adjusted EBITDA loss to $16.8 million (from $21.9 million). For a small company, this is no easy feat.

These gains are undoubtedly a result of strong performance in its effective cost-control measures despite higher-than-expected catastrophic weather claims in its insurance segment.

Wrapping it up, I’m not surprised that eight analysts rate PRCH stock as a ‘strong buy‘ with a potential upside of 388%.

Sphere 3D Corp (ANY)

With Bitcoin (BTC-USD) hovering near the $60k mark, companies like Sphere 3D Corp. (NASDAQ:ANY) are starting to look attractive to crypto enthusiasts. Sphere 3D focuses on carbon-neutral mining of Bitcoin and offers data management solutions using cloud, hybrid cloud, and desktop virtualization solutions.

Sphere 3D’s brands include Hybrid Virtualization Engine (HVE) ConneXions, specializing in virtualization solutions, and Unified ConneXions (UCX), providing IT services for various institutions.

The company reported a strong first quarter, with revenue growing 130% year-over-year to $6.9 million and mining 144.8 Bitcoin. Operating costs were higher at $8.8 million. Yet, Sphere 3D significantly reduced its net loss from $3.7 million to $1.9 million — proof of its ability to manage costs effectively while expanding its revenue and mining operations.

CEO Patricia Trompeter highlighted plans to upgrade their fleet with more efficient machines, which is expected to enhance profitability.

Currently, one analyst rates ANY stock as a strong buy with a high target upside of 277%. If you are bullish on crypto and cloud computing and looking for high-risk, high-reward tech stocks, ANY might be for you. 

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Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Rick Orford 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.