In this article, we will discuss the 12 Best IPO Stocks with Huge Upside Potential.
On July 6, Maria Llerena, Director of Financial Research at Domini Impact Investments, joined BNN Bloomberg to discuss the recent performance of the technology sector and the outlook for the remainder of the year. Llerena confirmed that while tech stocks faced a challenging finish to June, H1 of the year was very solid, with the sector driving overall market performance in H2. In particular, she highlighted that semiconductors and chips, which are central to the AI boom, were up almost 90% by the end of June. Regarding the recent sell-off, she attributed it to recurring concerns regarding the massive CapEx spending within the AI industry. She noted that AI-related CapEx is now equivalent to the spending of all non-AI-exposed stocks in the S&P 500, with an estimated $800 billion projected for 2026. This has raised questions about future returns, especially as hyperscalers have begun issuing debt to fund these investments rather than relying solely on cash flow.
Llerena explains that while borrowing is a standard practice for investment, the market is now placing a big microscope on how AI will be implemented across enterprises and how the broader economy will benefit. She emphasized the importance of observing how token pricing evolves as companies move from the initial investment phase to actual implementation. Turning to the bond markets, she noted that there is currently at least a 50% chance of a Fed rate hike by the end of the year, a possibility driven by the Fed’s ongoing focus on high inflation and the state of the job market. While she acknowledged that much of this has already been priced in, she noted that investors are operating without the extensive guidance they were accustomed to during the long-term low-rate environment.
Looking ahead to the upcoming earnings season, Llerena explained that she will be paying close attention to beats and raises, strong margins, and robust cash flow. She expects to gain early visibility into the semiconductor side of the industry through reports from Samsung. Outside of the AI-specific names, she is looking for evidence that the broader economy and consumer base remain strong, confirming her firm’s theory that the market is beginning to broaden out.
Against this backdrop, lets take a look at some of the best IPO stocks with huge upside potential.
Our Methodology
We used screeners to identify stocks that have gone public in the last 5 years and have an average upside potential of at least 45%. We 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 July 6.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
12 Best IPO Stocks with Huge Upside Potential
12. Venture Global Inc. (NYSE:VG)
Average Upside Potential: 47.47%
Venture Global Inc. (NYSE:VG) is one of the best IPO stocks with huge upside potential. On June 26, Venture Global announced that its subsidiary, Venture Global Shipping Holdings, LLC, closed a senior secured term loan facility totaling up to $1.5 billion. This financing agreement, which serves as a major capital initiative, is scheduled to mature on June 26, 2032.
Deutsche Bank and ING served as the coordinating lead arrangers for this transaction. Additionally, ING has taken on the roles of facility agent and security trustee to oversee the agreement.
Venture Global Inc. (NYSE:VG) plans to utilize the net proceeds for general corporate purposes. This includes reimbursing Venture Global LNG Inc. for the acquisition of nine LNG carriers, funding specific reserve accounts, and covering transaction-related fees and expenses.
Venture Global Inc. (NYSE:VG) is an energy, specifically LNG, company that owns, develops, constructs, and operates LNG production facilities on the US Gulf Coast. The company operates as a subsidiary of Venture Global Partners II LLC.
11. Cadre Holdings Inc. (NYSE:CDRE)
Average Upside Potential: 48.61%
Cadre Holdings Inc. (NYSE:CDRE) is one of the best IPO stocks with huge upside potential. On June 2, Cadre announced that its subsidiary, Safariland, was selected as the ballistic panel provider for an FBI armor contract. The selection integrates Safariland’s SX HP panels into the Overt Armor Kit/OAK developed by Predictive Ballistics LLC, which recently secured a five-year, $61 million IDIQ contract for the FBI and other Department of Justice agencies.
The SX HP panel was chosen following a rigorous evaluation process against 11 competitors, demonstrating superior ballistic performance, quality, and comfort. This selection marks a significant commercial milestone for the product, which was originally introduced by the company in 2025.
This contract reinforces Cadre Holdings Inc.’s (NYSE:CDRE) position in the federal law enforcement market and aligns with its strategy of developing mission-critical protective equipment. The award benefits from multi-year terms and recurring demand, further supporting the company’s long-term growth and commitment to innovative, life-saving technology.
Cadre Holdings Inc. (NYSE:CDRE) is a leading global manufacturer and distributor of safety and survivability equipment for law enforcement, first responders, and military personnel, focused on body armor, duty gear, and explosive ordnance disposal (EOD) tools.
10. Caris Life Sciences Inc. (NASDAQ:CAI)
Average Upside Potential: 54.41%
Caris Life Sciences Inc. (NASDAQ:CAI) is one of the best IPO stocks with huge upside potential. On July 1, Caris Life announced the commercial launch of Caris Detect, a multi-cancer early detection blood test. By utilizing ultra-deep Whole Genome and Whole Transcriptome sequencing alongside advanced AI, the test identifies cancer signals by analyzing a comprehensive range of molecular and biological patterns.
The technology aims to replace outdated screening methods by offering greater sensitivity than approaches that rely on limited genomic snapshots. This new tool is supported by a vast proprietary database containing over one million cases and 50 billion molecular markers, enabling the detection of subtle early-stage disease signals across various cancer types.
The launch is backed by findings from the Caris Detect ACHIEVE 1 study, which demonstrated the test’s effectiveness in identifying cancer signals. Moving forward, Caris Life Sciences Inc. (NASDAQ:CAI) intends to continue refining its platform through ongoing research to strengthen clinical evidence further and expand the test’s capabilities.
Caris Life Sciences Inc. (NASDAQ:CAI) is an AI-driven precision medicine company that uses large-scale clinico-genomic data and molecular profiling to guide cancer diagnosis and treatment. Its platforms apply machine learning to predict therapy response and improve personalized oncology outcomes.
9. Figure Technology Solutions Inc. (NASDAQ:FIGR)
Average Upside Potential: 58.38%
Figure Technology Solutions Inc. (NASDAQ:FIGR) is one of the best IPO stocks with huge upside potential. On July 6, Figure Technology announced its intention to offer $600 million in aggregate principal amount of senior notes through a private offering. This transaction is exempt from the registration requirements of the Securities Act of 1933 and is subject to market and other customary conditions.
The company plans to use the net proceeds to fund the cash consideration for its acquisition of Kiavi, an AI-powered lending platform for residential real estate investors, as well as for general corporate purposes and related transaction fees. The completion of the notes offering is not conditional upon the finalization of the Kiavi acquisition.
These notes will be guaranteed on a joint and several basis by certain domestic wholly-owned subsidiaries of Figure Technology Solutions Inc. (NASDAQ:FIGR). The offering is restricted to qualified institutional buyers in the US and non-US persons outside the country, as the notes will not be registered under the Securities Act or applicable state securities laws.
Figure Technology Solutions Inc. (NASDAQ:FIGR) is a US fintech company operating a blockchain‑native capital marketplace for loan origination, funding, and trading of tokenized assets, including consumer credit and digital asset products.
8. Firefly Aerospace Inc. (NASDAQ:FLY)
Average Upside Potential: 60.71%
Firefly Aerospace Inc. (NASDAQ:FLY) is one of the best IPO stocks with huge upside potential. On June 30, Firefly Aerospace and SSC Space announced the achievement of critical milestones for the development of Launch Complex 3C at the Esrange Space Center in Sweden. Following the completion of key infrastructure and the establishment of international regulatory frameworks, the companies have entered the final stages of pad construction with the first orbital launch of the Alpha rocket targeted for 2028.
The infrastructure development includes a new launch control center, payload processing facility, and vehicle integration building. These advancements are supported by a recent Memorandum of Cooperation between the Swedish National Space Agency and the US Federal Aviation Administration, which streamlines licensing processes and builds upon a bilateral Technology Safeguards Agreement to facilitate the export of US space technology.
This collaboration expands Europe’s access to space and strengthens strategic autonomy by providing a dedicated site for polar and sun-synchronous orbit missions. Additionally, SSC Space has secured a SEK 209 million agreement with the Swedish Defense Materiel Administration, enabling the Swedish Armed Forces to utilize the Alpha launch vehicle for future domestic satellite missions.
Firefly Aerospace Inc. (NASDAQ:FLY) is a space and defense technology company serving government, national security, and commercial customers. The company offers integrated launch and space services technology. It also offers Ocula, a lunar imaging service, alongside software and sensor solutions, and responsive space services.
7. Zenas BioPharma Inc. (NASDAQ:ZBIO)
Average Upside Potential: 68.24%
Zenas BioPharma Inc. (NASDAQ:ZBIO) is one of the best IPO stocks with huge upside potential. On June 2, Zenas announced positive results from the Phase 3 INDIGO trial of obexelimab for Immunoglobulin G4-Related Disease. The study met its primary and all key secondary endpoints, demonstrating a 56% reduction in flare risk compared to placebo and a significant decrease in glucocorticoid use and related toxicities.
The findings, presented at the EULAR 2026 Congress and published in the New England Journal of Medicine, highlight the drug’s potential as a first-line therapy. The trial, the largest ever conducted for this disease, showed that over 73% of treated patients remained flare-free through 52 weeks with a safety profile comparable to the placebo.
Following these successful results, Zenas BioPharma Inc. (NASDAQ:ZBIO) submitted a Biologics License Application to the FDA in May. The company continues to advance its clinical pipeline, with additional data expected later this year from its Phase 2 trial for systemic lupus erythematosus.
Zenas BioPharma Inc. (NASDAQ:ZBIO) is a clinical-stage company focused on developing transformative therapies for autoimmune diseases. Their pipeline features late-stage candidates like obexelimab and orelabrutinib, alongside several earlier-stage programs targeting chronic inflammatory conditions.
6. Fervo Energy Co. (NASDAQ:FRVO)
Average Upside Potential: 68.58%
Fervo Energy Co. (NASDAQ:FRVO) is one of the best IPO stocks with huge upside potential. On June 22, Fervo Energy, NVIDIA, and the Pacific Northwest National Laboratory/PNNL announced a partnership to develop “EGS-Twin,” a digital twin platform for Enhanced Geothermal Systems.
The initiative will integrate high-resolution field data with physics-based modeling and AI to improve subsurface management, optimize power generation, and increase the scalability of geothermal infrastructure.
PNNL will use Fervo Energy Co.’s (NASDAQ:FRVO) proprietary field data from its Nevada and Utah sites to train AI models on NVIDIA infrastructure to identify subsurface changes and enhance system reliability. The platform is scheduled for implementation by 2029, marking a significant advancement in applying accelerated computing to the clean energy sector.
Fervo Energy Co. (NASDAQ:FRVO) deploys large-scale enhanced geothermal systems to provide affordable, reliable, and clean power. Their industrial approach helps meet the growing energy demands of AI hyperscalers, utilities, and an increasingly electrified economy.
5. Oklo Inc. (NYSE:OKLO)
Average Upside Potential: 75.54%
Oklo Inc. (NYSE:OKLO) is one of the best IPO stocks with huge upside potential. On June 30, Oklo announced the acquisition of Creative Engineers/CEI, a chemical process engineering firm with specialized expertise in sodium and alkali-metal systems. This move integrates CEI’s capabilities in component development, fabrication, and applied R&D into Oklo’s team to directly support its sodium-cooled Aurora powerhouse technology.
Founded in 1996, CEI has decades of experience working with liquid-metal systems and has served as a technical partner to Oklo for several years. By bringing this team of approximately 20 engineers and fabricators in-house, Oklo aims to accelerate design iterations, enhance safety training, and reduce execution risks associated with its reactor deployment.
The acquisition adds a free cash flow positive business to Oklo Inc.’s (NYSE:OKLO) operations while allowing the company to internalize critical engineering and testing functions. CEI intends to continue its longstanding service relationships across the broader nuclear sector while focusing its primary efforts on advancing the commercialization of Oklo’s advanced nuclear energy solutions.
Oklo Inc. (NYSE:OKLO) is engaged in developing advanced fission power plants to offer clean, reliable, and affordable energy at scale.
4. AEVEX Corp. (NYSE:AVEX)
Average Upside Potential: 78.57%
AEVEX Corp. (NYSE:AVEX) is one of the best IPO stocks with huge upside potential. On July 6, AEVEX announced a $17.5 million follow-on contract to provide mission-focused, data-driven services in support of US national security objectives. The award reinforces the company’s role in delivering specialized expertise and integrating multi-domain solutions to transform complex data into actionable insights for time-sensitive operations.
Before that, on June 30, AEVEX announced the appointment of Murali Krishnan as Chief Growth Officer. Bringing over two decades of executive experience in defense technology and national security, Krishnan will lead the company’s global business development, strategic partnerships, and long-term market expansion initiatives.
In his new role, Krishnan will collaborate with the executive leadership team to accelerate growth across AEVEX Corp.’s (NYSE:AVEX) portfolio of unmanned systems and advanced mission solutions. Previously, he held senior leadership positions at Northrop Grumman, where he oversaw expansive portfolios in space systems, sensor solutions, and strategic growth for defense and civil programs.
AEVEX Corp. (NYSE:AVEX) is a leading US defense firm specializing in autonomous systems, AI-driven software, and advanced electronic warfare for national security. Through rapid prototyping and high-volume manufacturing, the company delivers affordable, front-line-ready solutions designed to maintain technological superiority in contested environments.
3. Kailera Therapeutics Inc. (NASDAQ:KLRA)
Average Upside Potential: 80.26%
Kailera Therapeutics Inc. (NASDAQ:KLRA) is one of the best IPO stocks with huge upside potential. On July 7, Kailera Therapeutics announced positive topline results from two Phase 3 clinical trials conducted by Hengrui Pharma for HRS-7535/KAI-7535, an oral small-molecule GLP-1 receptor agonist. In the obesity trial, participants achieved a mean weight loss of up to 10.9% by Week 44 and 11.1% by Week 50, while the type 2 diabetes trial demonstrated a mean HbA1c reduction of 1.50% to 1.68%.
Liver safety findings across both trials remained consistent with prior data, showing no observed safety signals. These results underscore the potential for the oral treatment to offer a convenient and scalable alternative for patients, maintaining efficacy while providing a favorable safety profile.
Concurrent with these developments, Kailera Therapeutics Inc. (NASDAQ:KLRA) is advancing KAI-7535 through a global Phase 2 clinical trial that began in April 2026. This study aims to further optimize the drug’s clinical profile for obesity treatment by assessing a broad range of doses and titration strategies, with results expected in 2027.
Kailera Therapeutics Inc. (NASDAQ:KLRA) is a clinical-stage biotechnology company dedicated to advancing a diversified pipeline of obesity treatments, including four clinical-stage candidates. The company’s portfolio leverages various GLP-1-based mechanisms to provide flexible, effective options for weight management across different stages of a patient’s journey.
2. HawkEye 360 Inc. (NYSE:HAWK)
Average Upside Potential: 100.30%
HawkEye 360 Inc. (NYSE:HAWK) is one of the best IPO stocks with huge upside potential. On June 22, HawkEye 360 reported record financial results for FQ1 2026, highlighted by a 116.5% year-over-year revenue increase to $49.8 million. The company also reported an adjusted EBITDA of $7.4 million, a 92.1% increase from the prior year, and a total backlog of $285 million.
During the quarter, HawkEye 360 Inc. (NYSE:HAWK) completed an initial public offering in May, raising $435.9 million in net proceeds. This financial milestone, alongside a new $125 million revolving credit facility, provides the company with significant flexibility to support its ongoing constellation expansion and strategic growth initiatives.
Operational highlights include the successful launch of six satellites across Clusters 13 and 14 and over $100 million in new international contract awards so far in 2026. These developments, including a recent $75 million electronic warfare program with a European Ministry of Defense, underscore the rising global demand for the company’s space-based signals intelligence and analytics.
HawkEye 360 Inc. (NYSE:HAWK) provides mission-critical signals intelligence by detecting and geolocating global radio-frequency emissions to support faster decision-making for defense and national security. Through space-based collection and AI-powered analytics, the company transforms RF spectrum data into a strategic advantage for the US government and allied partners.
1. WeRide Inc. (NASDAQ:WRD)
Average Upside Potential: 109.59%
WeRide Inc. (NASDAQ:WRD) is one of the best IPO stocks with huge upside potential. On June 22, WeRide, Geely Farizon, and Kwoon Chung Bus Holdings announced a partnership to develop robotaxis specifically designed for right-hand-drive markets.
By integrating WeRide’s autonomous driving technology with Geely Farizon’s vehicle manufacturing and Kwoon Chung’s operational expertise, the companies aim to launch a mass-produced, purpose-built vehicle based on the GXR platform, with initial deployments beginning in Hong Kong.
This initiative addresses the global shortage of right-hand-drive autonomous solutions and serves as a strategic gateway for WeRide Inc. (NASDAQ:WRD) to expand into markets such as Singapore, the United Kingdom, Japan, and Australia. The project aligns with China’s five-year development plan for intelligent new energy vehicles and supports WeRide’s goal of scaling its global fleet to 2,600 vehicles by the end of 2026.
WeRide Inc. (NASDAQ:WRD) is a global leader in autonomous driving technology that develops and deploys L2-L4 self-driving solutions, focusing on robotaxis, intelligent driving, and smart mobility. It provides driverless services for mobility, logistics, and sanitation industries, including Robotaxis, Robobuses, Robovans, and Robosweepers.
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