In this article, we will look at the 11 Tech Stocks with Highest Upside Potential.
On August 29, Drew Matus, Chief Market Strategist at MetLife Investment Management, joined CNBC to discuss the markets and share his view of the current economy. He highlighted that there is too much focus on the inflation numbers, especially the latest PCE inflation rate of 2.9%. He believes that the Fed is more concerned about inflation volatility, which remains relatively low. This is because volatility makes it difficult for companies to plan investments and manage costs effectively. He also noted that tariffs could be one of the reasons for adding temporary inflation; however, these effects are expected to fade away if the labor market remains soft.
Matus expects the Fed to cut rates in September and forecasts gradual rate cuts until unemployment and inflation data become clearer. He sees the central bank’s moves as a response to support investment rather than consumption because long-term growth is more likely rooted in investment.
Matus also discussed a new Stanford study showing AI will mainly replace younger, entry-level workers. He compared this to the computer revolution 30 years ago, which also replaced basic jobs. According to him, the key question is how long and widespread this AI-driven change will be. He noted that while AI might disrupt jobs in the short term, it also encourages workers to focus on roles where humans add unique value, thereby creating productivity booms that could lead to more job creation later. Matus’s investment thesis is centered around technology and financial sectors. He believes that the future belongs to AI-native companies, which will likely displace many traditional firms.
With that, let’s take a look at the 11 tech stocks with the highest upside potential.
A technical stock market chart. Photo by Energepic from Pexels
Our Methodology
To curate the list of 11 tech stocks with the highest upside potential, we used the Finviz Stock Screener and CNN. Using the screener, we aggregated a list of tech stocks with more than 40% upside potential. Next, we cross-checked the upside potential from CNN and ranked the companies in ascending order of this metric. We have also added the number of hedge fund holders for each stock sourced from Insider Monkey’s Q2 2025 database. Please note that the data was recorded on August 31, 2025.
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).
11 Tech Stocks with Highest Upside Potential
11. Atlassian Corporation (NASDAQ:TEAM)
Number of Hedge Fund Holders: 64
Analyst Upside Potential: 40.62%
Atlassian Corporation (NASDAQ:TEAM) is one of the Tech Stocks to Buy with the Highest Upside Potential. Atlassian Corporation (NASDAQ:TEAM) has been making headlines since it announced a multi-year partnership with Google Cloud on August 7, to boost cloud adoption and AI capabilities for customers globally. Moreover, the company has also been on Wall Street’s radar since the FQ4 2025 earnings release, topping revenue and EPS estimates by $27.74 million and $0.13, respectively.
Atlassian Corporation (NASDAQ:TEAM) delivered $1.384 billion in quarterly revenue, reflecting a 22% growth year-over-year. Management noted that this was driven by a 26% growth in Cloud revenue. Notably, the company had 2.3 million AI monthly active users, and its AI business is expected to further strengthen its footing with its multi-year partnership with Google Cloud. Under the partnership, the company’s apps, like Jira, Confluence, and Loom, will run on Google Cloud’s AI-optimized platform, thereby making it easier for businesses to use the platform and giving the company a significant boost in monthly active users.
Despite these positive developments, Wall Street remains cautious on the stock as the company gave softer FY2026 guidance. On August 11, Stephens lowered the firm’s price target on Atlassian Corporation (NASDAQ:TEAM) from $221 to $202, while keeping an Equal Weight Rating. The firm noted AI-driven headwinds as one of the key reasons behind a cautious stance. More recently, on August 18, Citi analyst Fatima Boolani also lowered the firm’s price target on the stock from $300 to $240, while maintaining a Buy rating on the stock.
Atlassian Corporation (NASDAQ:TEAM) is a technology company that creates software tools to help teams collaborate, manage projects, and boost productivity.
10. Kyndryl Holdings, Inc. (NYSE:KD)
Number of Hedge Fund Holders: 36
Analyst Upside Potential: 41.55%
Kyndryl Holdings, Inc. (NYSE:KD) is one of the Tech Stocks to Buy with the Highest Upside Potential. The company has been strengthening its AI market reach with a series of investments lately. On August 21, Kyndryl Holdings, Inc. (NYSE:KD) announced its plan to invest $2.25 billion in India over the next three years.
Management noted that the focus is on modernizing technology infrastructure for major organizations in India. Notably, a key part of this investment will go towards establishing an AI Innovation Lab in Bengaluru, which will help develop future-ready talent and promote AI technology. The company aims to support India’s digital growth by enhancing skills for about 200,000 people through training programs and also plans to deepen collaboration with the Indian government on AI projects.
Earlier, on August 18, Kyndryl Holdings, Inc. (NYSE:KD) had announced signing the White House’s “Pledge to America’s Youth: Investing in Artificial Intelligence (AI) Education.” The pledge is part of a coalition of over 60 US organizations committed to investing in AI education for young Americans.
Kyndryl Holdings, Inc. (NYSE:KD) provides mission-critical technology services for enterprises in over 60 countries. They design, build, manage, and modernize complex IT systems.
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