In this article, we will discuss the 10 Best NASDAQ Stocks with the Highest Upside Potential.

On April 18, Andrew Slimmon, Managing Director & Senior Portfolio Manager at Morgan Stanley Investment Management, appeared on BNN Bloomberg to discuss the markets. Slimmon observed that as the threat of war recedes, the market is reverting to pre-war investment trends, including gold, a weaker dollar, non-US investments, and AI beneficiaries. Slimmon suggested that while the conflict may not be fully resolved, the stock market is acting as if the worst of the war is behind it, and he used these market rotations to gauge how investors are positioning themselves for a post-war environment.

Addressing the inflationary pressures caused by disruptions in oil, aluminum, and chemicals, he noted that investors are currently discounting these risks on the assumption that price spikes will be short-lived. He explained that while oil might settle in the mid-80s rather than returning to pre-war levels, it is unlikely to derail the US economy. He highlighted a less-discussed factor: a major consumer tax cut bill passed the previous year, which began impacting the economy in February and March. He anticipated that tax refund checks from the IRS would soon provide households with a financial buffer to offset higher gasoline prices.

Slimmon characterized the current market cycle as the late stage of a bull market. He expressed concern over the recent resurgence of money-losing technology stocks, a trend he identified as a classic sign of the late euphoric stage. While these stocks lost their luster during Q4 due to concerns over private credit, AI disruption, and the war, their rapid comeback as the war recedes worries him. He cited a sneaker company, Allbirds, rebranding itself as an AI company as a classic euphoric indicator. Slimmon warned that the market is following the cycle to a tee, moving from the excessive pessimism seen early in a bull market to the extreme optimism and potential euphoria that often precedes a downturn when bad news finally hits.

Our Methodology

We used screeners to identify NASDAQ stocks with an average upside potential of at least 25%, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on April 24. 

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10 Best NASDAQ Stocks with the Highest Upside Potential

10. Adobe Inc (NASDAQ:ADBE)

Average Upside Potential: 27.93%

Adobe Inc (NASDAQ:ADBE) is one of the best NASDAQ stocks with the highest upside potential. On April 22, Adobe authorized a new $25 billion share repurchase program through April 2030, a move intended to signal confidence in its long-term value and cash flow. This announcement follows a nearly 30% decline in the company’s stock price this year, driven by investor anxiety over the rise of autonomous creative tools.

The CFO characterized the buyback as a direct expression of the company’s financial strength amid a rapidly shifting competitive landscape in the software and design industry. The pressure on Adobe intensified recently after the AI firm Anthropic introduced Claude Design, a tool that allows users to generate prototypes and presentations through a chatbot interface.

These advancements from AI competitors, alongside the growth of smaller rivals like Figma, have led to fears that traditional design software may face reduced demand. In response, Adobe recently launched a new suite of AI-driven products designed to help clients automate and personalize digital marketing functions, aiming to prove the effectiveness of its own integrated technology.

Adobe Inc (NASDAQ:ADBE) is a provider of multimedia and digital marketing software such as Photoshop, Illustrator, and InDesign, among others. It also offers AI products such as Adobe FireFly and Adobe Sensei.

9. GE HealthCare Technologies Inc. (NASDAQ:GEHC)

Average Upside Potential: 29.53%

GE HealthCare Technologies Inc. (NASDAQ:GEHC) is one of the best NASDAQ stocks with the highest upside potential. On April 23, GE HealthCare reached a clinical milestone with the first patient dosed in the Phase 2/3 LUMINA trial for mangaciclanol, an innovative manganese-based MRI contrast agent. The trial, currently underway at the Mayo Clinic, evaluates the agent under an FDA Fast Track designation, which is intended to accelerate the development of products addressing significant unmet medical needs.

Mangaciclanol is designed for both adult and pediatric patients to help clinicians visualize lesions with abnormal vascularity in the central nervous system and other parts of the body. If approved, mangaciclanol has the potential to transform the medical imaging market by serving as a viable alternative to (or even a replacement for) gadolinium-based contrast agents/GBCAs, which are the current global standard.

Unlike gadolinium, a rare-earth metal that has raised medical concerns regarding long-term retention in the body, manganese is a naturally occurring element that is autoregulated by the human system. Early clinical data indicates that mangaciclanol offers diagnostic capabilities similar to market-leading agents while using a macrocyclic cage-like structure to minimize the risk of elemental retention.

GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a healthcare company with a focus on various products, services, and digital solutions made for diagnoses and treatments. The company operates through Imaging, Advanced Visualization Solutions, Patient Care Solutions, and Pharmaceutical Diagnostics segments.

8. Datadog Inc. (NASDAQ:DDOG)

Average Upside Potential: 35.48%

Datadog Inc. (NASDAQ:DDOG) is one of the best NASDAQ stocks with the highest upside potential. On April 22, Datadog launched GPU Monitoring, a new observability product designed to help organizations manage the high costs and technical complexities associated with scaling AI projects. With GPU instances now accounting for ~14% of total compute costs, this tool provides a unified view of the AI stack, linking the health and performance of GPU fleets directly to the specific teams and workloads using them.

This level of visibility is intended to solve the black box problem of GPU spending, where companies see rising costs but struggle to identify which business units or projects are driving that expenditure. The platform addresses common operational hurdles such as stalled training workloads, resource contention, and hardware failures that can cause expensive delays. Unlike traditional tools that offer high-level health metrics, Datadog Inc.’s (NASDAQ:DDOG) solution surfaces granular data to identify idle or underutilized devices.

By providing these insights, platform engineering and ML teams can avoid over-provisioning and make data-driven decisions on whether to procure new hardware or reallocate existing resources, ultimately maximizing the return on investment for expensive AI infrastructure. Beyond cost optimization, the tool is designed to accelerate AI delivery by reducing troubleshooting time from hours to minutes.

Datadog Inc. (NASDAQ:DDOG) is a US-based company that provides an observability service for cloud-scale applications. Its platform provides monitoring and analytics for servers, databases, tools, and services, delivered via a SaaS data analytics platform.

7. MongoDB Inc. (NASDAQ:MDB)

Average Upside Potential: 36.11%

MongoDB Inc. (NASDAQ:MDB) is one of the best NASDAQ stocks with the highest upside potential. On April 23, MongoDB announced a €74 million investment to expand its operations in Ireland, a move that will grow its local workforce by more than 50%. The expansion is set to create ~200 new jobs by 2027, bringing the company’s total Irish headcount to over 500 employees. These new roles will span engineering, AI development, and customer-facing teams, distributed between the company’s existing international headquarters in Dublin and a newly established office in Cork.

The investment is heavily focused on Applied AI, as MongoDB seeks to help its 65,200+ global customers transition from experimental AI projects to real-world production. CEO CJ Desai emphasized that as organizations begin building agentic AI applications, they require a unified data platform capable of handling multi-cloud environments and complex data requirements.

The Irish teams will play a central role in innovating these platforms while helping European clients navigate regulatory landscapes, including the EU AI Act and data protection standards. Since establishing its EMEA headquarters in Dublin in 2013, MongoDB Inc. (NASDAQ:MDB) has deepened its local roots through university partnerships and a growing community of over 13,500 developers who list MongoDB as a core skill.

MongoDB Inc. (NASDAQ:MDB) provides a general-purpose database platform through cloud-based, enterprise, and community offerings.

6. Microsoft Corporation (NASDAQ:MSFT)

Average Upside Potential: 39.39%

Microsoft Corporation (NASDAQ:MSFT) is one of the best NASDAQ stocks with the highest upside potential. On April 23, Microsoft Chairman and CEO Satya Nadella, alongside Prime Minister Anthony Albanese, announced an A$25 billion investment to expand Australia’s digital infrastructure, cybersecurity, and AI skills by the end of 2029. This represents the company’s largest-ever investment in the country and is designed to increase Azure AI supercomputing and cloud capacity.

The initiative aligns with the Australian Government’s National AI Plan, focusing on economic growth while establishing safeguards for responsible technology adoption. The investment will see Microsoft’s existing cloud footprint in Australia grow by more than 140% through the deployment of advanced AI processors and expanded data center operations. Underpinning this growth is a Memorandum of Understanding focused on national priorities, including a commitment to 100% renewable energy and water-positive operations by 2030.

Furthermore, Microsoft will collaborate with the newly established Australian AI Safety Institute to monitor and evaluate advanced AI systems, particularly conversational AI, to ensure safe and sovereign infrastructure. Additionally, the commitment includes a massive skilling program and enhanced national defense measures. Microsoft Corporation (NASDAQ:MSFT) aims to provide three million Australians with workforce-ready AI skills by 2028 through initiatives like “Elevate for Educators” and a new partnership with the youth platform Anyway.

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.

Click to continue reading and see the 5 Best NASDAQ Stocks with the Highest Upside Potential.

Disclosure: None. None. Follow Insider Monkey on Google News.