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.
9. Wix.com Ltd. (NASDAQ:WIX)
Number of Hedge Fund Holders: 42
Analyst Upside Potential: 41.76%
Wix.com Ltd. (NASDAQ:WIX) is one of the Tech Stocks to Buy with the Highest Upside Potential. Wix.com Ltd. (NASDAQ:WIX) topped analysts’ expectations during the fiscal second quarter of 2025. The company posted $489.93 million in revenue, up 12.43% year-over-year and ahead of consensus by $2.60 million. Moreover, the EPS of $2.28 also topped the consensus by $0.52. The stock has surged more than 9.90% since the earnings release on August 6.
In addition, Wall Street has been bullish on Wix.com Ltd. (NASDAQ:WIX) as several analysts maintained a Buy rating on the stock. On August 19, Brad Erickson from RBC Capital maintained a Buy rating on the stock with a price target of $210. Later, on August 25, Citizens JMP analyst Andrew Boone also reiterated a Buy rating on the stock with an associated price target of $200.
Wix.com Ltd. (NASDAQ:WIX) has raised its full-year bookings outlook after taking confidence from a strong first half. The company now expects $2,040 million to $2,075 million in bookings compared to the previous guidance of $2,025 million to $2,060 million.
Wix.com Ltd. (NASDAQ:WIX) provides a web development platform that helps businesses and organizations create and manage their online presence without needing to code.
8. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 59
Analyst Upside Potential: 42.25%
Elastic N.V. (NYSE:ESTC) is one of the Tech Stocks to Buy with the Highest Upside Potential. On August 29, Brian White from Monness raised the firm’s price target on Elastic N.V. (NYSE:ESTC) from $111 to $150, while keeping a Buy rating on the stock.
The bullish sentiment comes after the company topped Wall Street estimates for its fiscal first quarter of 2026. The company delivered a revenue of $415.29 million, up 19.53% year-over-year, and ahead of consensus by $17.95 million. The EPS of $0.60 also topped expectations by $0.18. Analyst White noted that the revenue growth was helped by a 24% rise in cloud services. Moreover, the company is also benefitting from smart strategies like raising prices and focusing on generative AI. White believes that these moves improve its market position.
Management also raised its revenue and earnings forecasts for the next quarter and full fiscal year. It expects second-quarter revenue between $415 million and $417 million, while the full-year revenue is anticipated between $1.679 billion and $1.689 billion.
Elastic N.V. (NYSE:ESTC) is a data analytics company that provides a platform to help users find insights from large amounts of data.
7. Vertex, Inc. (NASDAQ:VERX)
Number of Hedge Fund Holders: 25
Analyst Upside Potential: 43.30%
Vertex, Inc. (NASDAQ:VERX) is one of the Tech Stocks to Buy with the Highest Upside Potential. Wall Street has a mixed opinion about Vertex, Inc. (NASDAQ:VERX) after the company released results for the fiscal second quarter of 2025 on August 6. The company delivered quarterly revenue of $184.56 million, up 14.56% year-over-year but missing the consensus by $38,230. Moreover, the EPS of $0.15 slightly topped the consensus by $0.01.
On August 8, Bradley Sills from Bank of America Securities reduced the firm’s price target on Vertex, Inc. (NASDAQ:VERX) from $42 to $34, while reiterating a Hold rating. Similarly, on August 12, Gil Luria from D.A. Davidson also reiterated a Hold rating with an associated price target of $29.
Bradley Sills of BoFA noted that he lowered the price target due to a weaker economic outlook and specific issues in the sales tax segment. He highlighted that Vertex, Inc. (NASDAQ:VERX) remains strong in the enterprise market and benefits from the shift to cloud services and growing e-invoicing adoption. However, the net retention rates fell a bit in the recent quarter as contract growth with large clients slowed down.
Management has reduced the full-year revenue outlook from a range of $760 million to $768 million to $750.0 million to $754.0 million.
Despite this, on August 15, the Citizens JMP analyst Patrick Walravens reiterated a Buy rating on Vertex, Inc. (NASDAQ:VERX) with a price target of $50.
Vertex, Inc. (NASDAQ:VERX) provides software solutions for indirect tax calculation, compliance, and analytics. Their products help businesses automate tax determination and reporting through licenses and cloud subscriptions.
6. Chime Financial, Inc. (NASDAQ:CHYM)
Number of Hedge Fund Holders: 46
Analyst Upside Potential: 43.88%
Chime Financial, Inc. (NASDAQ:CHYM) is one of the Tech Stocks to Buy with the Highest Upside Potential. On August 22, Chime Financial, Inc. (NASDAQ:CHYM) announced its strategic partnership with Workday, a major HR and financial management platform, to integrate Chime Workplace into Workday Wellness.
Chime Workplace is the company’s all-in-one financial wellness platform that helps employees manage money, save, build credit, and more. Whereas Workday’s Wellness is an AI-powered solution that helps organizations understand and improve the benefits employees want and use. The integration will allow employers to offer financial wellness tools directly through their existing HR systems for easy rollout and management.
The partnership builds on Chime Financial, Inc.’s (NASDAQ:CHYM) strategy to expand into the enterprise space, with Chime Workplace offered at no cost to employers and employees.
Chime Financial, Inc. (NASDAQ:CHYM) is a financial technology company that offers mobile banking services without traditional fees. The company partners with FDIC-insured banks to provide members with checking accounts, debit cards, secured credit cards, and tools to manage money.
5. Freshworks Inc. (NASDAQ:FRSH)
Number of Hedge Fund Holders: 35
Analyst Upside Potential: 44.77%
Freshworks Inc. (NASDAQ:FRSH) is one of the Tech Stocks to Buy with the Highest Upside Potential. Wall Street is bullish on Freshworks Inc. (NASDAQ:FRSH) as the company topped revenue and EPS estimates during the fiscal second quarter of 2025. The revenue of $204.68 million was ahead by $5.74 million, whereas the EPS of $0.18 topped by $0.06.
Several analysts have given bullish ratings on the stock. Firstly, on July 30, a day after the release, Piper Sandler raised the firm’s price target on the stock from $22 to $25, while keeping an overweight rating. The firm noted that the company exceeded the Rule of 40 with a 27% free cash flow margin. While investors remain cautious on small-cap SaaS stocks, Freshworks Inc. (NASDAQ:FRSH) is building a strong and efficient growth model.
More recently, on August 11, Brian Schwartz from Oppenheimer reiterated a Buy rating on the stock with an associated price target of $19. The company expects full-year revenue in the range of $822.9 million – $828.9 million, reflecting 14% – 15% growth.
Freshworks Inc. (NASDAQ:FRSH) is a software company that offers SaaS solutions focused on Customer Experience and Employee Experience.
4. Clearwater Analytics Holdings, Inc. (NYSE:CWAN)
Number of Hedge Fund Holders: 51
Analyst Upside Potential: 52.39%
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is one of the Tech Stocks to Buy with the Highest Upside Potential. Analysts are bullish on Clearwater Analytics Holdings, Inc. (NYSE:CWAN) after it topped revenue estimates in its fiscal second quarter of 2025. The EPS also stayed in line with the consensus.
The company posted a revenue of $181.94 million, up 70.37% year-over-year and ahead of consensus by $7.80 million. Notably, the company announced new client wins, including Germany’s largest public insurer and a major international bank, expanding its global footprint and validating its integrated platform strategy. Moreover, revenue retention rates remained strong, with a gross retention rate of 98% and a net retention rate of 110%.
Following the positive update, on August 11, Goldman Sachs upgraded the stock from Neutral to Buy with a price target of $27. More recently, on August 26, RBC Capital analyst Rishi Jaluria also maintained a Buy rating on Clearwater Analytics Holdings, Inc. (NYSE:CWAN) with a price target of $36.
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides a cloud-native investment management platform for institutional investors that integrates portfolio management, trading, accounting, reconciliation, compliance, and risk analytics into one unified system.
3. Duolingo, Inc. (NASDAQ:DUOL)
Number of Hedge Fund Holders: 55
Analyst Upside Potential: 64.51%
Duolingo, Inc. (NASDAQ:DUOL) is one of the Tech Stocks to Buy with the Highest Upside Potential. On August 26, Raymond James analyst Alexander Sklar maintained a Hold rating on the stock, without disclosing any price target.
The analyst noted that the company has a strong hold on the mobile language learning market, and the company excels in this sector due to its gamified product design. The design helps users stay engaged and improve retention. Sklar notes that Google Translate has added new language features. However, he thinks Duolingo, Inc. (NASDAQ:DUOL) structured learning paths are better for retention as Google’s AI interactions are more open-ended and less structured.
The analyst added that Google’s language tools could be a threat in the future; for now, Google lacks features, including tailored video call experiences and detailed grammar guidance. While the analyst sees strong potential for the company, he also sees some challenges, thereby Sklar kept a cautious rating on the stock.
Duolingo, Inc. (NASDAQ:DUOL) is a technology company that offers a mobile learning platform for language education. Its app provides courses in over 40 languages and can be used for free, with premium subscription options available.
2. Strategy Inc (NASDAQ:MSTR)
Number of Hedge Fund Holders: 45
Analyst Upside Potential: 75.23%
Strategy Inc (NASDAQ:MSTR) is one of the Tech Stocks to Buy with the Highest Upside Potential. Strategy Inc (NASDAQ:MSTR) blew past Wall Street consensus with its Q2 2025 earnings release on July 31, driven by a steep bitcoin rally. The company delivered $114.49 million in revenue, up 2.73% and ahead of consensus by $1.97 million. The EPS of $32.60 also topped expectations by $25.84.
Wall Street is bullish on the stock. On August 11, Dan Dolev from Mizuho Securities raised the firm’s price target on Strategy Inc (NASDAQ:MSTR) from $536 to $586, while keeping a Buy rating on the stock. More recently, on August 26, Canaccord Genuity analyst Joseph Vafi also reiterated a Buy rating on the stock with a price target of $464.
Strategy Inc (NASDAQ:MSTR), formerly MicroStrategy, is a company focused on bitcoin treasury and business intelligence. It provides AI-powered enterprise analytics software through its cloud-native platform called Strategy ONE.
1. Aurora Innovation, Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 41
Analyst Upside Potential: 113.14%
Aurora Innovation, Inc. (NASDAQ:AUR) is one of the Tech Stocks to Buy with the Highest Upside Potential. On August 28, Aurora Innovation, Inc. (NASDAQ:AUR) announced that it has partnered with McLeod Software, a top provider of transportation management solutions.
Together, both companies aim to create the first Transportation Management System designed specifically for autonomous trucks. This new system will allow customers to easily manage and track autonomous truck operations through McLeod’s existing TMS platform. Moreover, by integrating Aurora Innovation, Inc.’s (NASDAQ:AUR) technology through an API, carriers will be able to schedule, dispatch, and monitor autonomous shipments with greater ease and real-time visibility.
Management noted that beta testing is already underway, and the integrated TMS will be available to McLeod customers in 2026.
Aurora Innovation, Inc. (NASDAQ:AUR) develops the Aurora Driver, a self-driving platform that works across various vehicle types, from passenger cars to large trucks.
While we acknowledge the potential of AUR 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 AUR and that has 100x upside potential, check out our report about this cheapest AI stock.
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