Motley Fool: Six next-generation tech stocks not to forget amid the Anthropic IPO

Investors are focused on Anthropic’s expected IPO, which could value the company at around $1.5 trillion. But six already-public companies also deserve their attention, investor and entrepreneur Rick Orford writes in an article for the Motley Fool. All six could double their market capitalization by the start of 2028, with two having the best chances of achieving that, he argues.

Redwire

Space and defense tech Redwire is one of the two companies Orford believes have the best chances of doubling their market capitalization by 2028. Its market value currently stands at $2.14 billion. To reach $4.3 billion, the company will need to turn its $542.1 million order book into strong revenue growth, he writes. Redwire’s second-quarter revenue rose 89.6% year over year to a record $117.1 million. Orford also notes that the spacecraft maker had around $557 million in cash and cash equivalents at the end of the second quarter, enough to fund more than eight years of operations at its current spending rate. Still, he highlights the risks of executing its contracts and further dilution of existing shareholders as it funds operations.

SoundHound AI

AI voice assistant developer SoundHound AI, which has a market capitalization of $2 billion, is the second top candidate for doubling in value, in Orford's view. To achieve that, it needs to win more enterprise clients, he writes. SoundHound AI’s second-quarter revenue grew 45% year over year to a record $61.9 million, driven by major enterprise AI deals involving its OASYS platform. Orford advises investors to watch how quickly contracted business converts into revenue. He also cautions that while the company’s $202.8 million in cash should last more than a year and a half, funding its operations continues to pose significant dilution risk.

D-Wave

Quantum computing company D-Wave, with a market capitalization of $4.6 billion, is among the most speculative investments on the list because adoption of quantum computing is still at an early stage, the Motley Fool contributor argues. For D-Wave to double in value, its technology needs to become commercially viable, which could take longer than the 14 months remaining until 2028, Orford writes.

He sees recurring cloud-access revenue as a key metric for D-Wave. It rose 50% year over year to $1.9 million in the second quarter. Another $40.7 million in contracted business has yet to convert into revenue. As of June 30, D-Wave had $546.2 million in cash and marketable securities, enough to last almost four years, though dilution remains a risk, according to the article.

IonQ

IonQ, with a market capitalization of $13 billion, is another of the most speculative stocks on the list for the same reason as D-Wave: quantum computing is still at an early stage of development. For the company to double in value, investors will need confidence that its technology can become commercially viable, Orford argues. He therefore advises investors to watch how IonQ converts its $485 million in remaining performance obligations into revenue. Second-quarter revenue rose 287% year over year to a record $80.1 million. IonQ also has around $2.1 billion in cash and short-term investments, enough to last roughly four years. However, Orford warns of dilution risk: the company has announced plans to raise $2 billion through an offering of shares and warrants.

Archer Aviation

Archer, with a market capitalization of $2.98 billion, is developing vertical takeoff and landing taxis. Its path to doubling in value depends on securing type certification for its electric aircraft, bringing them into production, and launching commercial operations, the Motley Fool contributor reckons. The company plans to begin flights by the 2028 Olympic Games in Los Angeles and has acquired the master lease for nearby Hawthorne Airport to support those plans. Orford identifies dilution and slower-than-expected commercial adoption of the aircraft as risks.

AST SpaceMobile

For telecommunications company AST SpaceMobile, with a market capitalization of $15.9 billion, to double in value, it needs to hit two milestones: deploy a satellite network and generate revenue from agreements with wireless carriers. The risk of failing to achieve those goals by 2028 is significant, in Orford's view. At the end of June, the company had $2.3 billion in cash and cash equivalents, but that would last only about a year, the shortest cash runway among the six companies. Building a satellite network requires substantial financing, making dilution a major concern, Orford argues.