<div id="readability-page-1">It’s crucial to strike a balance between stability and growth potential. While the majority of your portfolio should consist of reliable, blue-chip stocks, I believe allocating a small portion to speculative assets can unlock tremendous opportunities. High-risk, high-reward investments like cryptocurrencies or penny stocks can turn a modest sum into a life-changing fortune. Of course, caution is very important here. Small-cap stocks are among the only securities that can realistically deliver 100x gains. However, these assets are notoriously volatile and should be treated as lottery tickets rather than long-term holdings. Finding businesses that have the potential to grow rapidly is important. However, this is also a very difficult task. Regardless, here are three stellar stocks that I believe possess the power to deliver astronomical returns over the next seven years. <h2>TSS Inc (TSSI)</h2> <div id="1591057"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Gorodenkoff/Shutterstock.com</div>TSS, Inc. (OTCMKTS:TSSI) provides end-to-end technology solutions for data centers. Notably, TSSI stock has been a big winner of late. The company’s stock price has skyrocketed nearly 1,000% in the past six months. I believe TSS is poised for huge success in the coming years. Why? Well, the company reported impressive Q1 2024 results, with revenue surging 142% to $15.9 million. Operating income swung to a profit of $253,000 from a $665,000 loss a year ago. Additionally, adjusted EBITDA also improved by 209% to $475,000. TSS is capitalizing on the booming demand for AI computing infrastructure. Rack integration orders that used to be in the tens are now in the hundreds. Indeed, it’s clear the company is looking to aggressively expand production capacity by up to 10x to meet this unprecedented demand. Now, this is truly a small-cap stock, with a current market capitalization of just $75 million. However, I think this valuation leaves plenty of room for upside if data centers keep booming and the company keeps landing contracts. <h2>Airship AI Holdings (AISP)</h2> <div id="1400593"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Shutterstock</div>Airship AI Holdings (NASDAQ:AISP) specializes in AI-powered surveillance solutions for government and commercial clients. I see the potential for this company to take off, given the growing demand for advanced security tech. Recently, the Department of Justice awarded the company with a major multi-year contract, which is a promising sign. Airship AI also secured a deal with a Singapore government agency. The company is still unprofitable. This past quarter, the company posted an operating loss of $1.4 million. However, analysts expect sales growth this year, likely boosted by these new contracts. The stock has been volatile, currently trading around $3.78 with a 52-week range of $1.34 to $14.32. Getting added to the Russell 3000 in June was another positive development. Plus, Roth Capital initiated coverage with a buy rating, citing a $120+ million opportunity pipeline. The price target is at $12. If Airship AI keeps landing big government and military contracts, I wouldn’t be surprised to see this stock soar in the coming years. Indeed, this is a small company in a hot sector to keep on your radar. <h2>Red Cat Holdings (RCAT)</h2> <div id="1658667"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Rocksweeper / Shutterstock.com</div>Red Cat Holdings (NASDAQ:RCAT) is a small drone company that provides unmanned aerial systems to the U.S. military, government agencies, and allies. I believe this stock has tremendous potential as Western countries modernize their defense capabilities, taking lessons from the war in Ukraine. Small drones have proven essential on the modern battlefield for reconnaissance and precision strikes. Red Cat’s flagship Teal 2 drone, launched in early 2024, generated impressive revenue growth of 250% year-over-year to $5.8 million in the latest quarter. Impressively, analysts have a moderate buy consensus on the stock with a bullish $4 average price target, implying over 130% upside. Moving forward, I think the company is well-positioned to benefit from the Pentagon’s Replicator initiative to field thousands of low-cost drones. I’ve covered this stock multiple times before the recent surge. However, at current levels, I still think this stock is a solid buy. As of writing, the company carries a market cap of just $130 million. Red Cat is one of the only pure-play small drone stocks available to public investors. Federal tailwinds like the American Security Drone Act should provide a major boost. Indeed, as Red Cat scales production and adds high-margin software, I expect profitability to improve. 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. On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article. Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.Artificial Intelligence, Industrial, Defense, TechnologyPenny Stocks </div>

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Three small-cap stocks with high growth potential are TSS Inc (TSSI), Airship AI Holdings (AISP), and Red Cat Holdings (RCAT). TSSI provides technology solutions for data centers and has seen a 1,000% increase in stock price. AISP specializes in AI-powered surveillance solutions and has secured major contracts. RCAT is a drone company that has experienced impressive revenue growth. These stocks have the potential to deliver significant returns.

3 Stellar Stocks That Could Turn $1K into $10K by 2030