If you are only concerned about upside potential, looking into some stocks and cryptos with high returns is the way to go. The current environment is indeed very risky, with a recent rate hike and a recession on the horizon. Still, there are high-risk, high-return assets that can deliver multibagger gains if you’re lucky.

However, I would note that chasing high upside potential comes with a lot of risks as you’d have to step foot into speculative territory. But the rewards can be just as rewarding if you play your cards right.

With that in mind, let’s look at three such names:

aTyr Pharma (LIFE)

aTyr Pharma (NASDAQ:LIFE) is among the most speculative bets on the market right now. Biotech companies naturally come with a lot of risks, but aTyr Pharma is especially risky as its success depends on just one drug candidate, efzofitimod, a promising treatment for fibrotic lung diseases.

As the company states, “We believe that by targeting NRP2 to resolve aberrant immune responses, efzofitimod presents a novel mechanism of action, and could prove an effective therapeutic alternative with less toxicity compared to current standard of care for patients with severe inflammatory diseases where there remains a high unmet medical need.”

Simply put, this one drug may make or break this company. But the data is promising and analysts are bullish.

The average analyst price target here is $18, a 737.21% upside potential in just one year.

Clearfield (CLFD)

Clearfield (NASDAQ:CLFD) has been trading at bargain prices after the selloffs in 2022 and I believe the latest selloffs after its Q2 earnings report make it too compelling to ignore. The company beat Zacks Consensus Estimate of 55 cents per share with quarterly earnings of 67 cents per share.

However, its revenue of $71.8 million, up 34.2% year-over-year, missed by $180,000. Sales guidance came down substantially to $267.5 million at the midpoint, down 45% from 2022. That’s why the stock has shaved off a quarter of its value.

Still, that’s near what analysts expect at the low end. For 2024, revenue is expected to bounce back to $366 million at the lowest and continue the robust growth trajectory. Even then, the company will likely outperform if the economy cooperates and fiber optic products rise in demand.

The average analyst price target of $98.83 presents a 180.22% upside potential. That’s likely to be revised down in the coming weeks, but I believe it is a multibagger stock if you hold it for a few years.

Render Token (RNDR)

Render Token (RNDR-USD) is among the hottest cryptos this year as it has quintupled its value in the past few months. The project aims to make GPU computing power easily accessible to individuals and institutions worldwide at a much cheaper rate by pooling rented GPU power through the blockchain and reselling it in bulk.

I believe that’s an excellent idea, as tailwinds in sectors such as cloud computing, gaming and artificial intelligence have all pushed the demand for more GPU computing power. As the Render Network gains popularity, I expect institutions to jump on board, as renting pooled GPU computing power is much cheaper than buying or maintaining massive data centers that are needed to render movies and run cloud gaming or machine learning programs.

Conversely, I would wait before buying RNDR right now. Unless Bitcoin (BTC-USD) breaks above $30,000 and holds at that level, avoiding the crypto market as a whole is a good idea. But keep RNDR in your notes for the long run, as I expect it to be a multibagger, even if you buy at these levels. Still, you will likely be able to grab these tokens for much cheaper in the next few months.

On the date of publication, Omor Ibne Ehsan did not have (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.