On August 20, Andres Garcia-Amaya, Zoe Financial CEO, joined ‘The Exchange’ on CNBC to discuss how IPO pops will draw in private companies to become public. Garcia-Amaya mentioned that while many companies are staying private longer, the IPO market is starting to show signs of life with successful public debuts, which may encourage some private companies to go public. He suggested that because of this, the AI boom in particular may be in the middle innings, not just the beginning. Andres Garcia Amaya, the CEO of Zoe Financial, was asked to Breaking down the current state of CapEx in AI, particularly whether it could be higher than in the 1990s, and what has already been seen, Garcia-Amaya drew an analogy to the late 1990s internet boom and stated that a necessary infrastructure boom had to precede it, which he compared to laying the rails for the internet with things like fiber-optic cables.

Prior to this sentiment as well, Tony Kim, Centerview Partners co-president, joined CNBC’s ‘Closing Bell: Overtime’ on August 14 to discuss the IPO market and the dealmaking environment. Discussing whether the first-day trading pops were due to pent-up demand or if the IPOs were being priced too low, Kim stated that the correct read is that the IPO market, which had been weak, is now coming back. As a result, companies are choosing to price conservatively to ensure a successful landing. He mentioned an interesting statistic: in the past decade, only about a dozen IPOs have seen a first-day gain of over 150%, but in 2025, there have already been two such IPOs with Figma and Circle. Kim also described the M&A market as robust and explained that after a period of uncertainty in April, the market has settled, and people have a clearer view of a soft landing.

That being said, we’re here with a list of the 10 best up and coming stocks with huge upside potential.

Our Methodology

We sifted through the Finviz stock screener to compile a list of the top stocks that went public in the last 5 years. We then selected the 10 stocks with an upside potential of over 25% as of September 12. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q2 2025, which was sourced from Insider Monkey’s database.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

10 Best Up and Coming Stocks with Huge Upside Potential

10. Kyndryl Holdings Inc. (NYSE:KD)

Number of Hedge Fund Holders: 36

Average Upside Potential as of September 12: 40.85%

Kyndryl Holdings Inc. (NYSE:KD) is one of the best up and coming stocks with huge upside potential. On September 12, Kyndryl and VML, which is a WPP (NYSE:WPP) global brand, creative & digital transformation company, announced a new global partnership. The collaboration reimagines customer experiences by leveraging AI, data, and modern infrastructure.

The partnership will combine Kyndryl’s services, which include Kyndryl Consult and its co-creation service Kyndryl Vital, with VML Enterprise Solutions’ expertise in experience transformation. The goal is to help customers move beyond small proofs of concept to fully scalable, AI-driven solutions. The two companies will deploy expert squads of designers, AI experts, and engineers to assist with implementation.

Potential applications of this partnership include using AI agents to orchestrate data for personalized banking in the financial services sector and helping retailers use AI to enhance omnichannel commerce and unify their technology platforms across areas like order management and customer relationship management.

Kyndryl Holdings Inc. (NYSE:KD) is a technology services company and IT infrastructure services provider in the US, Japan, and internationally.

9. Cava Group Inc. (NYSE:CAVA)

Number of Hedge Fund Holders: 41

Average Upside Potential as of September 12: 41.20%

Cava Group Inc. (NYSE:CAVA) is one of the best up and coming stocks with huge upside potential. On September 2, Argus lowered the firm’s price target on Cava Group to $76 from $110, while keeping a Buy rating on the shares. Cava lowered its same-store sales growth estimates for the year, which the firm sees as a realistic calibration.

Earlier for Q2 2025, Cava Group’s revenue reached $278.2 million, which represented a 20.3% increase year-over-year. Cava reported an adjusted EBITDA of $42.1 million, which was a 22.6% increase from Q2 2024, and a net income of $18.4 million. The company’s restaurant-level profit margin was 26.3%. In this quarter, Cava also opened 16 new restaurants, which brought the total number of locations to 398.

However, the company anticipates that tariffs on some products could affect their costs. Still, Cava’s leadership stated that brand health scores, which include NPS and value scores, have improved. The company is also using technology like Hyphen and AI-camera-vision to improve operational efficiency and digital order accuracy.

Cava Group Inc. (NYSE:CAVA) owns and operates a chain of restaurants under the CAVA brand in the US. It also offers dips, spreads, and dressings through grocery stores.

8. eToro Group Ltd. (NASDAQ:ETOR)

Number of Hedge Fund Holders: 42

Average Upside Potential as of September 12: 41.94%

eToro Group Ltd. (NASDAQ:ETOR) is one of the best up and coming stocks with huge upside potential. On September 5, Citi analyst Christopher Allen lowered the firm’s price target on eToro to $57 from $62, while keeping a Neutral rating on the shares. Citi cut the price target on incremental caution over the retail trading overall.

Earlier in August, eToro Group also released its financial results for Q2 2025, which was the company’s first quarter as a public company. Adjusted EBITDA saw a 31% year-over-year increase, which reached $72 million due to a combination of higher revenue and disciplined cost management. User metrics also grew, with funded accounts increasing by 14% year-over-year to 3.63 million.

eToro launched 24/5 trading for 100 US equities and expanded its US crypto offerings to over 100 assets. It also introduced new AI-powered tools and portfolios, including “Tori,” which is an AI-powered analyst, and new portfolios in partnership with Franklin Templeton. In a move to expand its global footprint, eToro activated a new license from the Monetary Authority of Singapore/MAS and launched new savings products in France.

eToro Group Ltd. (NASDAQ:ETOR) engages in the trading business. Its multi-asset platform supports trading & investing in equities, crypto assets, commodities, currencies, and options, which can be traded either as assets or as derivatives related to various underlying asset types.

7. Remitly Global Inc. (NASDAQ:RELY)

Number of Hedge Fund Holders: 39

Average Upside Potential as of September 12: 42.62%

Remitly Global Inc. (NASDAQ:RELY) is one of the best up and coming stocks with huge upside potential. On September 10, Remitly announced the launch of Remitly One, which is a new all-in-one financial membership. The new membership is available to select eligible US customers for a monthly fee of $9.99 and is designed to help customers manage, move, and grow their money across borders.

Broader US availability is expected by the end of the year, with support for additional countries being explored for 2026 and beyond. Remitly One expands on the company’s existing services by offering a suite of new products and benefits. These include Remitly Flex, which is a send-now, pay-later solution that allows eligible customers to access up to $250 with no interest.

While non-members receive funds in 3 days, Remitly One members get instant access, multiple withdrawals, and flexible repayment options. Another feature is the Remitly Wallet, which is a free in-app service for holding money. Remitly One members who use the wallet earn a 4% annual cash reward on their USD balances. Additionally, Remitly One members get early access to the Remitly Card, which is a debit card with no foreign transaction fees.

Remitly Global Inc. (NASDAQ:RELY) provides digital financial services in the US, Canada, and internationally. It offers cross-border remittances and complementary financial services through mobile application and website.

6. Duolingo Inc. (NASDAQ:DUOL)

Number of Hedge Fund Holders: 55

Average Upside Potential as of September 12: 51.32%

Duolingo Inc. (NASDAQ:DUOL) is one of the best up and coming stocks with huge upside potential. On September 8, Wells Fargo initiated coverage of Duolingo with an Underweight rating and $239 price target. The firm believes Duolingo’s user growth issues will persist in the medium term, and also believes that the company’s 2027 estimates have downside risk.

The company announced a strong performance, with sales increasing to $252 million from $178 million year-over-year, and net income growing to $45 million from $24 million in the same period. Duolingo reported an EPS of $0.91, which exceeded the expected $0.55.

Luis von Ahn, the Co-Founder and CEO, emphasized the achievement of record profitability and strong top-line growth, along with solid performance across all subscription tiers. Due to this strong performance, the company is once again raising its full-year guidance. Duolingo is now investing in both its core business and exciting new areas like Chess, Math, and Music, which are expected to drive long-term growth.

Duolingo Inc. (NASDAQ:DUOL) operates as a mobile learning platform in the US, the UK, and internationally. The company offers courses in 40 different languages through its Duolingo app.

5. Centessa Pharmaceuticals (NASDAQ:CNTA)

Number of Hedge Fund Holders: 36

Average Upside Potential as of September 12: 53.06%

Centessa Pharmaceuticals (NASDAQ:CNTA) is one of the best up and coming stocks with huge upside potential. On September 9, LifeSci Capital analyst Francois Brisebois reiterated a Buy rating on Centessa Pharmaceuticals and set a price target of $39.00.

In Q2 2025, Centessa Pharmaceuticals reported that the company had $404.1 million in cash and investments, which is projected to fund its operations into mid-2027. The company’s R&D expenses increased to $42.7 million in Q2 2025, up from $32.8 million in Q2 2024. This led to a wider net loss of $50.3 million in Q2 2025, compared to a net loss of $43.8 million in Q2 2024.

Centessa also provided updates on its orexin receptor 2 (OX2R) agonist pipeline. Its lead candidate, ORX750, is progressing in the Phase 2a CRYSTAL-1 study for the treatment of narcolepsy types 1 and 2 (NT1 and NT2) and idiopathic hypersomnia. Data from this study is anticipated within the year. Additionally, the Phase 1 trial for ORX142 began following the FDA’s clearance of its Investigational New Drug application in June 2025, with data expected within the year.

Centessa Pharmaceuticals (NASDAQ:CNTA) is a clinical-stage pharmaceutical company that discovers, develops, and delivers medicines.

4. Rubrik Inc. (NYSE:RBRK)

Number of Hedge Fund Holders: 52

Average Upside Potential as of September 12: 53.37%

Rubrik Inc. (NYSE:RBRK) is one of the best up and coming stocks with huge upside potential. On September 11, CIBC raised the firm’s price target on Rubrik to $130 from $125, while keeping an Outperform rating on the shares. The firm’s positive thesis on shares was reaffirmed by the FQ2 2026 earnings report despite the conservative FQ3 outlook. CIBC forecasts revenue growth of 34% for FY2026 and 23% for FY2027.

This sentiment followed Rubrik’s FQ2 2026 financial results, with total revenue reaching $310 million, which was a 51% increase year-over-year. Subscription revenue was $297 million, which was up 55% from the prior year. The company’s ARR surpassed $1.25 billion, growing by 36% year-over-year. Net New Subscription ARR for the quarter was $71 million, and the Subscription Net Retention Rate remained strong at above 120%.

The company’s customer base continues to grow, with 2,505 customers having over $100,000 in Subscription ARR, which marked a 27% increase year-over-year. Rubrik also reported improved profitability and cash flow. As of the quarter’s end, Rubrik’s cash position, including cash equivalents, restricted cash, and marketable securities, was $1.5 billion, with $1.1 billion in convertible debt.

Rubrik Inc. (NYSE:RBRK) is a technological company that provides data security solutions to individuals and businesses worldwide.

3. Chime Financial Inc. (NASDAQ:CHYM)

Number of Hedge Fund Holders: 46

Average Upside Potential as of September 12: 60.17%

Chime Financial Inc. (NASDAQ:CHYM) is one of the best up and coming stocks with huge upside potential. On September 9, Chime announced the launch of its new Chime Card, which features cash back rewards and an updated design. The new secured credit card is the latest addition to Chime’s suite of fee-free banking services and is available to all new and existing members.

Current Credit Builder cardholders can upgrade directly in the Chime app. The new Chime Card is designed to be more rewarding, especially for Chime+ members. Chime+ is a free, enhanced membership tier for those who set up a qualifying direct deposit. Chime+ members can earn 1.5% cash back on a rotating list of categories such as groceries, gas, and restaurants, with no limit on the rewards earned.

The new rewards are in addition to the existing benefits for Chime+ members, which include a 3.75% APY on savings, fee-free overdraft protection with SpotMe, and early access to pay with MyPay. The Chime Card also serves as a tool for building credit. While it is a secured credit card, it allows members to build their credit history through everyday purchases.

Chime Financial Inc. (NASDAQ:CHYM) is a financial technology company that provides digital consumer banking and payment solutions.

2. Apogee Therapeutics Inc. (NASDAQ:APGE)

Number of Hedge Fund Holders: 36

Average Upside Potential as of September 12: 155.45%

Apogee Therapeutics Inc. (NASDAQ:APGE) is one of the best up and coming stocks with huge upside potential. On August 28, BofA analyst Tim Anderson raised the firm’s price target on Apogee Therapeutics to $87 from $78, while keeping a Buy rating on the shares, citing estimate changes following Q2 2025 results.

The Q2 2025 financial results showed that Apogee Therapeutics had a strong cash position of $621.2 million in cash, cash equivalents, and marketable securities at the end of the quarter. The financial runway is expected to support operations into Q1 2028.

Apogee announced positive 16-week topline data from Part A of its Phase 2 APEX trial for APG777, which is a potential best-in-class treatment for moderate-to-severe atopic dermatitis/AD. The trial met all primary and key secondary endpoints, with APG777 demonstrating a 71% reduction in Eczema Area and Severity Index/EASI from baseline, compared to 33.8% for placebo.

Apogee Therapeutics Inc. (NASDAQ:APGE) is a clinical-stage biotechnology company that develops novel biologics for the treatment of atopic dermatitis/AD, asthma, eosinophilic esophagitis/EoE, chronic obstructive pulmonary disease/COPD, and other inflammatory and immunology indications.

1. Janux Therapeutics Inc. (NASDAQ:JANX)

Number of Hedge Fund Holders: 39

Average Upside Potential as of September 12: 212.37%

Janux Therapeutics Inc. (NASDAQ:JANX) is one of the best up and coming stocks with huge upside potential. On September 10, Truist initiated coverage of Janux Therapeutics with a Buy rating and $100 price target. Truist believes that the company’s masking platform has the potential to overcome the limitations of T-cell engagers in solid tumors by improving safety and efficacy through tumor-activated masking.

For Q2 2025, Janux reported a net loss of $33.9 million, which is an increase from the $6.0 million net loss in Q2 2024. This was primarily due to increased expenses. R&D expenses were $34.7 million, compared to $14.9 million a year earlier, and G&A expenses were $10.5 million, up from $7.8 million in Q2 2024.

The company also announced that it received a $10 million milestone payment from Merck after the first patient was dosed in a lead collaboration program. Janux is advancing its pipeline of novel immunotherapies using its proprietary TRACTr, TRACIr, and ARM platforms. Both JANX007 and JANX008 are currently enrolling patients in their respective Phase 1 clinical trials.

Janux Therapeutics Inc. (NASDAQ:JANX) is a clinical-stage biopharmaceutical company that develops immunotherapies based on Tumor Activated T Cell Engager (TRACTr) and Tumor Activated Immunomodulator (TRACIr) platforms technology to treat patients with cancer.

While we acknowledge the potential of JANX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than JANX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.