10 Small Cap Stocks with Huge Upside Potential

1. Aura Biosciences, Inc. (NASDAQ:AURA)

Upside Potential: 244%

Market Capitalization: $349.661 million

Aura Biosciences, Inc. (NASDAQ:AURA) is a Massachusetts-based clinical-stage biotechnology company that develops precision immunotherapies to treat various types of solid tumors designed to fight cancer by protecting the functions of organs. The primary offering of the company, bel-ser, is in the last stage of clinical development for the treatment of people living with choroidal melanoma. This small-cap company fully leverages its vision to treat cancer through a modified approach.

At the recent investor event, the management shared details on their bladder program, which has the potential to apply to a range of cancers. The company has also initiated a Phase 2 clinical trial in metastases to the choroid, a condition affecting around 20,000 people annually in the United States and Europe, with no approved treatments. The financial results support Aura Biosciences, Inc. (NASDAQ:AURA)’s plans to tap the untapped, with Research and Development costs up by nearly 12%, from $65.2 million to $73.3 million, for the year ended December 31, 2024.

The latest earnings report of Aura Biosciences, Inc. (NASDAQ:AURA) also posted $151.1 million in cash and marketable securities for the previous year, adequate to support operations into the second half of 2026. The company is highly optimistic regarding the potential of its top tier, Bel-Sar, to redefine treatment paradigms across major cancer types.

Just a few days ago, H.C. Wainwright raised the price target for Aura Biosciences, Inc. (NASDAQ:AURA) to $25 from $22 while holding onto the buy rating. The financial institution also expects the company to report sales of $33 million during the launch year, with forecasts as high as $680 million by 2030 if it can commercialize the treatment for primary choroidal melanoma in 2027. Capitalizing on the development plans it has for the future, this small-cap company has a huge upside potential of around 244%.

Overall, AURA ranks first on our list of the stocks with the biggest upside. While we acknowledge the potential of small cap stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AURA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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.