In this article, we will discuss the 12 Best New Tech Stocks With Highest Upside Potential.
On May 16, Laura Wellon, Managing Director at UBS Wealth, joined BNN Bloomberg to provide an outlook on the markets. Wellon discussed Kevin Warsh taking over the Fed amid Donald Trump’s pressure to cut rates. Due to a high PPI print and Warsh’s need to establish credibility, Wellon expects him to hold rates steady for his first few meetings, pushing potential cuts to December or Q1 2027. She noted that Jerome Powell is staying on at the Fed. She viewed that morning’s market decline as profit-taking after a seven-week uptick, asserting that the market still has room to run. This optimism is driven by sidelined cash and strong corporate earnings, with 84 percent of companies beating estimates by double digits.
Despite a 10 to 15 percent market drop when the Middle East conflict began, Wellon expects strong corporate earnings to persist, supported by AI-driven efficiencies. She noted that the market averages two downturns per year, and any positive resolution in the Middle East should trigger a relieved market rally. To navigate late-business-cycle and recession risks, she recommends high-quality, dividend-paying companies and international equities in developed and emerging markets, which dropped double digits during the correction and remain discounted. For a 6-to-12-month hedge against geopolitical risks, she favors actively managed commodities, specifically metals, which performed well in 2025. She advises rebalancing to build cash if needed over the next two years, while actively trimming technology exposure and the Mag 7.
Our Methodology
We used screeners to identify tech stocks that have gone public in the last 5 years and have an upside potential of at least 20%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among elite hedge funds and are ranked in ascending order of their upside potential.
Note: All data was sourced on May 21.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12 Best New Tech Stocks With Highest Upside Potential
12. Klarna Group (NYSE:KLAR)
Average Upside Potential: 23.46%
Klarna Group (NYSE:KLAR) is one of the best new tech stocks with highest upside potential. On May 18, Klarna partnered with EZContacts to bring flexible payment options to the vision care market. US customers shopping for sunglasses, contact lenses, and prescription eyewear can now use Klarna’s services at checkout.
Through this partnership, shoppers can choose from Klarna’s full suite of payment methods. These options include paying in full, paying in 30 days interest-free, paying in four interest-free installments, or utilizing longer-term financing instead of traditional credit cards.
The collaboration aims to provide consumers with transparent payment structures to manage the costs of planned vision care purchases. Klarna Group’s (NYSE:KLAR) checkout features are currently active and available to EZContacts customers in the US.
Klarna Group (NYSE:KLAR) is a global fintech company offering payment and shopping solutions. It specializes in “buy now, pay later” services, enabling consumers to split payments or defer purchases while helping merchants boost sales through flexible checkout options.
11. Monday.com Ltd. (NASDAQ:MNDY)
Average Upside Potential: 26.31%
Monday.com Ltd. (NASDAQ:MNDY) is one of the best new tech stocks with highest upside potential. On May 11, Monday.com reported strong financial results for Q1 2026, with revenue reaching $351.3 million, a 24% increase year-over-year. The company achieved record GAAP operating income of $19.8 million and non-GAAP operating income of $49.0 million. Net cash provided by operating activities stood at $104.7 million, supported by an adjusted free cash flow of $102.8 million.
The company experienced significant customer growth, particularly among larger accounts, hitting record net additions for clients with over $500,000 in ARR. Alongside these financial milestones, Monday.com launched its AI Work Platform featuring native agents, introduced a new consumption-based pricing model, and agreed to acquire OneAI to expand its voice agent capabilities.
For Q2, Monday.com Ltd. (NASDAQ:MNDY) projects total revenue between $354 million and $356 million. For the full fiscal year, the company expects total revenue to range from $1,466 million to $1,474 million, representing a 19% to 20% year-over-year growth rate, with an anticipated full-year adjusted free cash flow of $280 million to $290 million.
Monday.com Ltd. (NASDAQ:MNDY) is a software company headquartered in Tel Aviv, Israel. The company develops cloud-based work management platforms that help businesses manage projects, workflows, customer relationships, and software development processes.
