What if the next major growth opportunity isn't the stock dominating the headlines, but a company quietly building the technology tomorrow's economy will need? Investor Matt McCall has pointed to Advanced Micro Devices (AMD), which traded around $2 per share in 2015–2016, as an example of how identifying a business early can lead to extraordinary long-term gains. But past winners are easier to recognize in hindsight, and a low share price alone doesn't make a stock the next success story.

Five companies deserve a closer look for their connections to emerging technologies: Teradyne (TER) in semiconductor testing and robotics, GRAIL (GRAL) in early cancer detection, Kratos Defense (KTOS) in unmanned defense systems, FormFactor (FORM) in advanced chip testing, and Fabrinet (FN) in optical infrastructure supporting AI data centers. Each has a different path to potential growth, along with distinct financial, competitive, or regulatory risks. For long-term investors, the challenge is finding businesses whose future prospects can justify their valuations before market enthusiasm gets ahead of reality.

📈 Rhythm Pharmaceuticals, a rare-disease biotech, is up about 8x in five years, from $11.10 (Oct 26, 2021) to $89.27 (Oct 23, 2026 close, price only), with plenty of volatility along the way.

📈 One company could benefit from the growing need to connect AI data centers, while another is betting on technology that could change how cancer is detected.

Explore all five stocks, the catalysts that could drive their growth, and the warning signs to check before treating a market pullback as a buying opportunity.

Imagine setting aside $500 a month for $RYTM ( ▲ 1.65% ) for five years, buying a fixed dollar amount on a schedule, a method called dollar-cost averaging. In our example, the buy happens on the first trading day on or after the 26th of each month, from Oct 26, 2021 through Sep 28, 2026: 60 buys, $30,000 in total.

Caution: past pace rarely continues. Rhythm is a commercial-stage rare-disease biotech that is not yet consistently profitable, and its Q3 2026 results are due Tuesday, Nov 3, 2026 at 8:00 a.m. ET. The stock has also fallen from its $117.62 closing high on Dec 11, 2025, a reminder that prices can drop sharply even while sales of IMCIVREE grow. The same lesson as the five stocks below applies: a strong five-year chart is a reason to research, not proof of what comes next.

Finding the next great growth stock is not as simple as buying the companies everyone is talking about. By the time a trend dominates headlines and attracts billions of dollars, some of its biggest winners may already have delivered substantial gains. The more interesting opportunities can emerge elsewhere, particularly among companies whose businesses are growing but whose stock prices have fallen out of favor.

That is the thinking behind Matt McCall’s approach to high-growth investing. McCall, associated with Monument Traders Alliance, has said he has spotted dozens of stocks that went on to rise tenfold or more over the years. One of his most memorable examples is Advanced Micro Devices $AMD ( ▲ 0.86% ), which he identified when the stock traded in the low single digits, around $2 a share at its 2015–2016 lows. AMD’s subsequent growth illustrates the potential of recognizing a business before its success becomes obvious to the broader market.

However, that history comes with an important lesson for anyone hoping to find the next big winner: the road to substantial returns is rarely smooth. Even outstanding companies experience severe pullbacks, changing investor sentiment, and periods when their stock prices appear disconnected from their long-term potential.

For an investor balancing work, family, bills, and a portfolio that already demands attention, this creates a difficult question. Should a falling stock be treated as a warning to leave, or as an opportunity to investigate whether the market has become too pessimistic?

The answer depends on what has actually changed. A lower share price does not automatically make a business cheaper, and a compelling growth story does not guarantee that shareholders will earn attractive returns. The goal is to identify companies with credible demand, competitive advantages, and financial performance that can support their valuations over time.

Five companies stand out in McCall’s discussion of potential opportunities tied to semiconductor testing, robotics, early cancer detection, defense technology, quantum computing, and AI infrastructure. Each offers a different way to participate in emerging technologies, but each also comes with risks that deserve careful consideration.

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Teradyne offers exposure to two important areas of technological development: semiconductor testing and industrial automation. Its established semiconductor business helps manufacturers test chips for performance and reliability, while its robotics operations include collaborative robots designed to work alongside people in industrial environments.

The semiconductor business is particularly relevant as AI systems demand increasingly sophisticated chips. Manufacturing advanced processors is only part of the challenge. Those chips must also be tested to ensure they function as intended, making testing equipment an important component of the broader semiconductor supply chain.

Teradyne’s robotics operations add another potential source of growth. Collaborative robots, often called cobots, can assist with repetitive manufacturing tasks, including moving components, assembling products, and supporting factory workflows. As businesses look for ways to improve productivity and automate more processes, robotics could become a more meaningful contributor to Teradyne’s overall business.

McCall views Teradyne as a potential core holding for investors interested in robotics because its existing semiconductor operations provide exposure to an established market while its robotics business offers additional growth potential. That combination is more diversified than a company whose valuation depends entirely on a new technology becoming commercially successful.

The opportunity, however, should not be confused with a guaranteed bargain. McCall discussed exceptionally strong growth expectations for Teradyne, including substantial projected earnings and revenue increases. Those figures were estimates presented in the source discussion, not confirmed future results. Investors should verify the latest company guidance, reported results, and valuation before relying on them.

There is also a difference between a company delivering strong earnings and its stock continuing to rise. When investors already expect exceptional results, even a solid earnings report can disappoint if growth falls short of increasingly demanding expectations.

For a long-term investor, the more useful question is whether semiconductor testing demand and robotics adoption can support sustainable earnings growth over several years. Teradyne may merit a place on a watchlist, but its share price still needs to be evaluated against realistic business expectations.

GRAIL approaches growth investing from a completely different direction. Rather than supplying the computing infrastructure behind AI, the company focuses on blood-based cancer detection, particularly its Galleri multi-cancer early detection test.

The appeal is straightforward: many cancers are difficult to identify before symptoms appear. A test capable of detecting signals associated with multiple cancers from a blood sample could potentially help identify disease earlier, when treatment may be more effective. If such testing becomes widely adopted, the addressable market could extend across healthcare providers, insurers, and screening programs.

But the distinction between scientific promise and commercial success is especially important here.

McCall’s discussion highlighted the possibility of regulatory progress for Galleri and future Medicare coverage. Those developments were presented as potential catalysts, not completed milestones. FDA review, the exact intended use of a test, clinical evidence, reimbursement decisions, and adoption by healthcare providers all influence whether a promising medical technology becomes a commercially successful business.

Even if a test receives regulatory authorization, widespread use does not automatically follow. Healthcare professionals and payers need sufficient evidence that the test performs reliably, improves clinical outcomes, and justifies its cost. Multi-cancer screening also raises difficult questions about false-positive results, follow-up procedures, and whether detecting a possible cancer signal ultimately benefits the patient.

These considerations make GRAIL a substantially different investment from an established semiconductor equipment company. Its potential upside depends heavily on clinical validation, regulatory developments, reimbursement, and commercial adoption. Its share price may react sharply to new information, particularly when expectations for future approval are already reflected in the valuation.

For investors with limited time to monitor individual companies, GRAIL requires a clear understanding of event-driven risk. It may be worth researching as a speculative healthcare opportunity, but it should not be treated as though future regulatory and reimbursement decisions are assured.

The central investment question is not simply how many cancers the test might detect. It is whether the technology can demonstrate meaningful clinical value and develop into a sustainable business without requiring shareholders to absorb excessive financial or dilution risk along the way.

Kratos Defense & Security Solutions operates in the defense technology sector, with exposure to unmanned systems, advanced aircraft, and other technologies relevant to modern military operations.

The investment case reflects a broader shift in defense priorities. Unmanned aircraft, autonomous capabilities, sensors, and increasingly sophisticated software are changing how military organizations approach surveillance, reconnaissance, and certain operational missions. These systems can complement traditional platforms while offering different cost, deployment, and operational characteristics.

Kratos is particularly relevant to this theme because its business extends beyond the small consumer-style drones that often dominate public discussions. The company develops larger unmanned aircraft and other defense technologies that serve specialized military requirements.

Its potential growth depends partly on whether defense customers continue investing in these capabilities and whether Kratos can secure, execute, and profitably deliver contracts. Government spending can create substantial opportunities, but a larger defense budget does not guarantee that any particular contractor will receive the expected share of funding.

Contract timing is another important consideration. Defense programs can involve lengthy procurement processes, testing requirements, budget negotiations, and delays between an award and the recognition of revenue. Investors therefore need to distinguish long-term demand for unmanned systems from the timing of actual business results.

McCall also discussed Kratos in the context of a broader pullback in drone-related stocks. Such declines can create opportunities when the market has become excessively pessimistic, but they can also reflect legitimate concerns about valuations, competition, or delayed contracts.

A disciplined approach would involve examining the company’s contract pipeline, revenue growth, cash flow, profitability, and valuation rather than assuming that a lower share price guarantees a recovery.

For a portfolio seeking exposure to defense modernization, Kratos offers a technology-focused angle on the sector. Still, its prospects should be assessed on commercial execution and financial performance, not simply on expectations that geopolitical tensions or military spending will remain elevated.

Quantum computing attracts attention because of its potential to address certain problems that are difficult for conventional computers. Yet the technology remains in development, and the path from laboratory breakthroughs to widespread commercial use is uncertain.

FormFactor provides a way to explore this theme without investing exclusively in a company attempting to build a quantum computer.

The company specializes in semiconductor test and measurement technologies, including equipment used to evaluate advanced chips and devices under demanding conditions. Its capabilities in cryogenic testing are particularly relevant to certain quantum computing architectures, which require extremely low temperatures to operate.

That distinction matters because quantum computing is not a single technology built around one universal design. Different approaches rely on different physical systems, and their hardware requirements vary. Some prominent architectures require specialized cooling, creating potential demand for testing equipment capable of operating under those conditions.

FormFactor’s broader semiconductor testing business also gives investors exposure to an established market rather than requiring the entire investment thesis to depend on quantum computing reaching commercial maturity.

This is the attraction of a so-called picks-and-shovels strategy. Instead of trying to predict which quantum computing company will eventually lead the industry, investors can examine suppliers whose products may be needed by multiple participants.

However, that approach does not eliminate risk. FormFactor's quantum-related business remains only one part of its broader operations, and growth in the sector may not translate into a material contribution to company-wide earnings for some time. Quantum developers could face technical setbacks, commercial adoption could take longer than anticipated, and competing architectures may require different equipment.

The source discussion also highlighted FormFactor’s profitability and its valuation compared with some speculative technology businesses. Those observations should be checked against current financial statements and market prices, because earnings and valuation change over time.

For investors who want exposure to quantum computing but prefer a company with an existing semiconductor business, FormFactor offers a different angle. Its appeal rests on whether its established operations remain competitive and whether emerging testing demand can eventually contribute meaningfully to its financial results.

AI investment is often associated with the processors that train and run models. But computing power alone cannot support a large AI ecosystem. Data centers also need the equipment that moves information between servers and other components quickly and efficiently.

Fabrinet operates in advanced optical and electronic manufacturing, including products used in optical communications. Its exposure to photonics and optical components connects the company to the infrastructure that enables data to travel through modern communications networks and data centers.

As AI workloads expand, data centers must handle increasing volumes of information. Connecting processors, networking equipment, and storage systems becomes a critical engineering challenge, especially as operators seek greater bandwidth and efficiency.

Optical technologies can help address those demands by transmitting information using light rather than relying entirely on electrical signaling. The exact benefits depend on the application and system design, but high-speed optical connectivity is an important part of modern communications infrastructure.

This creates a potential opportunity for companies supplying the equipment and manufacturing capabilities needed to build and upgrade data centers. Investors who focus only on the most prominent AI chipmakers may overlook businesses positioned elsewhere in the supply chain.

Fabrinet’s investment case, however, depends on more than the continued popularity of AI. Investors should examine customer concentration, order trends, manufacturing capacity, margins, capital requirements, and the sustainability of demand. A company can participate in a growing market and still deliver disappointing shareholder returns if customers reduce spending or the stock’s valuation becomes too demanding.

The source discussion compared the current AI infrastructure buildout with the earlier development of the internet, when networking equipment helped enable the expansion of online services. The comparison is useful as a way to think about infrastructure demand, but it should not be mistaken for proof that current AI-related stocks will repeat the returns of earlier technology winners.

The more practical question is whether current investment in computing capacity will translate into durable orders and profitable growth for companies such as Fabrinet. If demand continues to expand and the company executes well, it could benefit from the physical infrastructure supporting AI adoption.

For investors who prefer to look beyond headline-grabbing chipmakers, Fabrinet illustrates why the suppliers behind a technology can deserve as much attention as the companies building the technology itself.

Teradyne, GRAIL, Kratos, FormFactor, and Fabrinet operate in different industries, but they share a common investment theme: each is connected to a market that could develop further as technology, healthcare, or defense requirements evolve.

Teradyne combines semiconductor testing with industrial robotics. GRAIL offers exposure to the possibility of broader multi-cancer early detection. Kratos participates in advanced defense systems and unmanned aircraft. FormFactor supplies testing capabilities relevant to semiconductor development and certain quantum computing architectures. Fabrinet supports the optical and electronic infrastructure used in modern communications and data centers.

These businesses should not be treated as interchangeable investments. Their financial profiles, sources of demand, competitive risks, and potential catalysts differ considerably. GRAIL, for example, faces regulatory and reimbursement uncertainty that is fundamentally different from the customer and manufacturing risks affecting Fabrinet. Kratos depends partly on defense procurement, while FormFactor’s quantum opportunity may take years to become a significant source of revenue.

That is why the AMD example should be interpreted as a lesson in patience and research rather than a formula for finding another tenfold winner.

A stock that has fallen 30% is not necessarily undervalued. It could be suffering from temporary market pessimism, or its expected earnings may have deteriorated enough to justify the decline. Likewise, a business that has already delivered enormous gains can continue growing, but investors must still determine whether the current price leaves room for attractive future returns.

McCall’s experience also highlights an uncomfortable reality about high-growth investing: even successful long-term holdings can experience severe drawdowns. Investors who pursue these opportunities need to consider whether they can tolerate volatility without being forced to sell at the wrong time.

For a busy investor, the most practical response is to build a repeatable research process rather than chase every new technology theme. Start with a small watchlist, understand what drives each company’s revenue, review its financial position, and identify the specific developments that would strengthen or weaken the investment case. Then compare the share price with realistic expectations for future earnings and cash generation.

Diversification also matters. A portfolio concentrated in AI infrastructure, robotics, quantum computing, and other growth themes may appear diversified because it holds several different companies. Yet many of those stocks can still fall together when investors reduce exposure to high-growth technology businesses.

The goal is not to predict every market turn or buy at the exact bottom. It is to make decisions based on evidence, recognize when a business thesis has changed, and avoid confusing a falling price with an automatic buying opportunity.

Tip: Before adding a beaten-down growth stock, write down three things: what should drive its business over the next five years, what could invalidate that expectation, and what valuation would make the potential return worthwhile. If those answers are unclear, the stock may deserve more research rather than an immediate purchase.

The next AMD may eventually emerge from an industry that investors currently underestimate. But the strongest approach is not to search for a stock that simply looks like AMD did at $2. It is to identify businesses with credible long-term demand, competitive advantages, sound financial foundations, and valuations that leave room for uncertainty. That is how an exciting growth story becomes a more disciplined investment decision.

Disclaimer: This article is for educational and informational purposes only and is not financial, investment, or trading advice. Company estimates, regulatory outcomes, and stock prices can change significantly, and the companies discussed face execution, competitive, regulatory, and valuation risks. Always conduct independent research and consider consulting a qualified financial professional before making investment decisions.

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