For investors, the ultimate dream is to discover a unicorn company before it takes off and generates huge profits. History is full of such success stories, most recently in the technology sector.
Recent examples in the semiconductor sector include Nvidia, AMD, ASML, and TSMC. Driven by growing demand for chips and advances in AI technology, their shares have soared, helping the Nasdaq as well.
Most of these companies have already peaked, so investing much money in them may not be worth the risk. Even if they continue to grow, it probably won't be at the previous explosive rates.
But that doesn't mean there aren't other places in the market where we could see significant returns in the next few years. Using a stock screener can help identify these emerging opportunities by filtering through sectors and companies showing promising growth. Just keep your eyes peeled, and the opportunities will become more evident.
Aside from the tech sector and companies focused on AI or hardware, which seem to be in a bit of a bubble, there are other promising areas to watch. For instance, biotechnology has been making massive strides lately.
And we're not just talking about blockbuster weight loss drugs like Ozempic and Wegovy, which the media hypes as miracle workers for preventing diabetes and managing the effects of COVID-19.
It seems only a matter of time before someone claims that these drugs can also cure cancer. However, it is wise to be cautious and not to get carried away by exaggeration.
Although these drugs may have some benefits, they can also have side effects, even serious ones such as intestinal failure, which can drastically affect quality of life.
Against this backdrop, the enthusiasm surrounding the shares of companies like Novo Nordisk could fade. Moreover, jumping into these stocks now is not the best strategy when they peak.
Instead, it may be worth exploring other areas of biotechnology, such as 3D organ printing. This could become a medical breakthrough that, more importantly, can save thousands of lives.
In 2019, Israeli scientists made the first 3D-printed heart using human cells. Now, experts use advanced 3D printing to create complex, functional human organs constructed from stem cells.
For context, in March 2024, 7,484 patients were on the waiting list for transplants in the UK, the highest number in recent years. Therefore, there is undoubtedly a lot of potential here.
However, it's essential to approach stocks in this field with caution. They've already experienced substantial growth, so something groundbreaking would need to happen for them to take off again.
