5 High-Risk, High-Reward Stocks With Serious Momentum

With the S&P 500 and NASDAQ sitting near all-time highs, speculation has returned in full force. Although market breadth may still be narrow, specific themes are showing explosive follow-through. From space and drone defense technology to AI infrastructure and autonomous vehicles, traders and investors are actively chasing momentum in names they believe could be the next big thing.

Of course, high momentum often comes with high risk, especially when fundamentals are still in the early innings or profitability remains elusive. But that hasn’t stopped a new class of speculative growth names from charging higher. 

Let’s take a closer look at five high-risk, high-reward stocks riding this wave of momentum and whether they’re worth chasing or watching for better entry points.

Rocket Lab: A Leading Space Company

Rocket Lab USA (NASDAQ: RKLB) has emerged as one of 2025’s hottest stocks, up more than 100% year-to-date and over 800% in the past 12 months. Momentum continues to build following bullish analyst calls, including a recent price target hike from Citigroup to $50, citing significant upside and a potential revenue boost from government contracts, Neutron, and growing satellite demand.

The company's vertically integrated space platform combines small and medium-lift rocket launches with a growing satellite and space systems business. Its Electron rocket has already completed 68 successful launches, while its Neutron rocket, the company’s answer to SpaceX’s Falcon 9, is on track for a debut by year-end. With Neutron, Rocket Lab opens the door to a significantly larger market opportunity.

From a technical perspective, shares are trading near all-time highs with the RSI hovering in overbought territory, suggesting a potential cooldown in the short term. However, any dip may offer a compelling entry point for longer-term investors who believe Rocket Lab is still in its early stages of growth. If the stock can pull back and establish a higher low, creating a fresh level of support within its uptrend, ahead of Neutron’s maiden flight, it could provide an ideal entry point.

Joby Aviation: The Race Toward Air Taxis

Joby Aviation (NYSE: JOBY) has been soaring, with shares up 138% year-to-date. As a pioneer in the electric vertical takeoff and landing (eVTOL) space, Joby is building next-generation air taxis that could disrupt urban transportation in the years to come. Backed by major players like Toyota and Delta, Joby is a clear leader in the air mobility race.

In recent months, the company has made solid progress toward FAA certification and even conducted flight tests with the U.S. Air Force. Most recently, the company announced plans to expand its production capacity significantly. The market is increasingly pricing in the possibility that Joby could be one of the first to commercialize eVTOL operations, potentially reshaping how people travel short distances.

Technically, the stock broke out of a long-term downtrend and base at the beginning of July and hasn’t looked back since. Over the previous month, the stock has soared from single digits to close at $17.78 on Friday, July 18. Over the past month, the stock has surged by more than 100%. While there’s no denying its impressive momentum, that same momentum has also placed it into overbought territory, increasing the odds of a pullback. Investors seeking exposure might be better off waiting for a pullback or consolidation, followed by a reset of the overbought RSI.

Nebius: Infrastructure for the AI Boom

Nebius Group N.V. (NASDAQ: NBIS) had previously flown under the radar, but no longer. The company, which builds advanced cloud infrastructure tailored to AI workloads, has been riding the wave of interest in everything related to artificial intelligence. Shares are up 90% so far this year, and its recent public debut has brought fresh attention to this little-known player.

Not only has retail taken notice of the stock, but Wall Street has also taken notice. In recent months, several analysts have boosted their target prices on the company. DA Davidson and BWS Financial recently increased their targets on the company. Perhaps most notably, on July 14, The Goldman Sachs Group initiated coverage of the company with a Buy rating and an impressive price target of $68, forecasting significant upside potential.

The company operates several distinct business lines, including Nebius AI, an AI-centric cloud platform that offers compute infrastructure tailored for machine learning deployments. Additionally, the company owns Toloka AI, a full-stack generative AI (GenAI) platform providing data annotation, model training, and quality assessments for large language models. Furthermore, Nebius owns Avride, an autonomous driving business focused on ride-hailing applications.

With multiple touchpoints across major growth themes, including AI infrastructure, GenAI development, and autonomous transport, NBIS is attracting early-stage speculation. From a technical perspective, it’s also consolidating in a bullish formation. If the stock can push above its recent high and resistance near $55, it might experience further upward momentum.

Lucid Group: A Speculative EV Rebound

Lucid Group (NASDAQ: LCID) may have been left for dead by many investors, but it has now shown signs of life again. Shares jumped more than 36% in a single day after the company announced a significant partnership with Uber to supply premium EVs for its future robotaxi service. The news was enough to spark a breakout from a multi-month downtrend and reignite speculative interest in the name.

While Lucid remains well below its IPO highs and profitability is still a long way off, the Uber deal provides a potential new avenue for growth and credibility. With its luxury EV lineup and cutting-edge battery technology, Lucid has the product; however, it has long struggled with scaling production and meeting demand.

If the recent breakout holds, technical traders may view this as a fresh trend reversal. For now, the story has shifted from a falling knife to a possible turnaround, but follow-through and delivery execution will be crucial for the stock to maintain momentum. 

Archer Aviation: Taking Off on Autonomous Flight

Archer Aviation (NYSE: ACHR) has quietly built a strong base this year, with shares rising 36% and building constructive price action. Like Joby, Archer is developing eVTOL aircraft for urban transport, and it recently received FAA sign-off to begin flight testing of its Midnight aircraft.

The company also has strategic backing from the U.S. Air Force and a growing commercial pipeline, including a planned launch of air taxi operations in 2025. Its focus on high-volume, low-cost manufacturing and battery optimization could help set it apart in a crowded eVTOL field.

Nine analyst ratings suggest that overall sentiment remains largely positive for the company. The stock has a Moderate Buy rating, with eight Buy ratings and just one Hold rating. 

The stock remains volatile, but the long base and recent push toward its 52-week high and breakout level suggest that bulls are beginning to take control. If the stock can break above the $14 upside inflection point and hold, it could start to catch up to JOBY.

Should You Chase the Momentum?

While these five names each represent very different parts of the innovation economy, they share one key trait: massive momentum paired with elevated risk. In today’s market, where thematic speculation is thriving and retail traders are aggressively pursuing the next big thing, these stocks are benefiting from a favorable backdrop. But the challenge is separating sustainable long-term growth stories from hype-fueled runs that could reverse just as quickly.

From a tactical standpoint, investors should be mindful of extended charts and overbought indicators. Many of these names are already pricing in years of growth and perfect execution, despite limited revenue or profitability. That doesn't mean they aren't investable, but it does mean that discipline around entries, position sizing, and risk management is crucial.

For long-term believers, partial entries on pullbacks or dollar-cost averaging may offer a better approach than chasing vertical moves. For short-term traders, these stocks are likely to continue providing volatility and opportunities in both directions.

Ultimately, these are names to watch closely. Whether they become the Teslas or SpaceXs of tomorrow or flame out under the weight of high expectations remains to be seen. But for now, the momentum is undeniable.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

The article "5 High-Risk, High-Reward Stocks With Serious Momentum" first appeared on MarketBeat.