Many cryptocurrencies have recovered over the past year as expectations of lower interest rates drove investors back to speculative investments. In addition, the first spot-priced ETFs (Exchange Traded Funds) for Bitcoin And ether, Rippleagainst the US Securities and Exchange Commission (SEC) and the halving of the Bitcoin price in April have brought more bulls back into this market segment.

It may be tempting to jump back on the crypto bandwagon, but investors should be aware that these tokens are still trading primarily on market hype rather than sustainable long-term strengths. Rather than placing big bets on the volatile crypto market, it might be wiser to invest the money in a few high-risk, high-reward investments in the technology sector instead.

I believe these three technology stocks – AST SpaceMobile (ASTS -3.75%), Serve Robotics (SERV 0.94%)And Lumen Technologies (LUMN 3.15%) – have the potential to make bigger gains than any cryptocurrency over the next few years. Let’s find out a little more about these stocks.

Image source: Getty Images.

1. AST SpaceMobile

AST SpaceMobile is developing satellites in low Earth orbit (LEO) for cellular communications. Unlike SpaceX’s Starlink, which offers medium range over medium frequency bands, AST’s satellites offer lower frequency band connections that can be directly accessed over larger regions using everyday 2G, 4G and 5G smartphones.

AST SpaceMobile was founded seven years ago and went public in 2021 through a merger with a special purpose acquisition company (SPAC). In September 2022, the company launched its first BlueWalker 3 prototype satellite for 4G and 5G connections and secured mobile broadband contracts with AT&T And Verizon Communications this May.

AST has a market cap of $5.2 billion but has yet to generate significant revenue. That’s because investors are expecting a surge in revenue after the company successfully launches its first commercial satellites. Next month, the first five commercial Block 1 BlueBird (BB) satellites are scheduled to launch – and the outcome of that event will determine the value of the expensive stock.

If AST successfully launches its satellites and expands its network, analysts expect its revenue to grow from just $4.3 million this year to $691.7 million in 2026. If that happens, the company could make huge multiples of profits in the next few years.

2. Serving robotics

Serve Robotics develops autonomous sidewalk delivery robots. The company began as a subsidiary of Postmates, which was later Uber Technologies in 2020. Uber spun off Serve Robotics in 2021, and the newly independent company went public in 2023 through a reverse merger (similar to a SPAC acquisition) with a blank-check company.

Serve Robotics is still a small company, operating only a fleet of about 100 robots, and only 48 of those robots were active daily in the second quarter of 2024. Uber Eats is Serve’s main customer, and the food delivery giant plans to deploy up to 2,000 of its robots across the U.S. by 2025.

Bulls believe that massive expansion will boost Serve’s revenue and attract attention from other companies, which is why analysts expect revenue to grow from just $1.6 million this year to $60 million in 2026. With a market cap of $441 million, Serve already trades at 7 times its projected 2026 revenue – and that’s assuming it can grow its young business. NVIDIA – which owns a 10% stake – appears to remain optimistic about its long-term growth potential.

3. Lumen Technologies

Lumen, the telecommunications company formerly known as CenturyLink, saw its share price fall below $1 in June this year. At the time, many investors thought the company was on the verge of bankruptcy as its big investments in expanding its wireline business backfired.

Unlike AT&T and Verizon, which grew their wireless businesses and reduced their wireline businesses, Lumen avoided the wireless market and instead focused on building out its wireline networks for homes and businesses. Unfortunately, the growth of its fiber optic business could not offset the long-term decline of its traditional wireline business.

As a result, Lumen’s revenue fell 11% in 2022 and another 17% in 2023. The company posted heavy losses in both years and suspended its dividend in November 2022. But in the last two months, Lumen shares have risen more than 450%.

The main catalyst was Lumen’s new contract with Microsoft Azure, the world’s second largest cloud platform, is upgrading its data centers with new network and fiber optic equipment. Lumen also signed a contract with Corning to ensure a steady supply of fibre optic cables to support this major new partnership.

Analysts continue to expect Lumen’s revenue to decline over the next three years, but bulls believe the deal with Microsoft will stabilize its core business. Lumen’s stock price is currently still trading at less than twice this year’s revenue, so the price could still rise significantly if the company uses its new partnership with Microsoft to grow its AI-focused data center business.