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 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. 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. 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.
10. Remitly Global Inc. (NASDAQ:RELY)
Average Upside Potential: 28.97%
Remitly Global Inc. (NASDAQ:RELY) is one of the best new tech stocks with highest upside potential. On May 12, Remitly announced the general availability of Remitly Business in Canada, making it the platform’s third live market alongside the US and UK. Designed specifically for small and medium-sized business owners rather than corporate treasury teams, the B2B cross-border payment platform has seen rapid adoption. In Q1 2026, Remitly Business experienced a sequential send volume growth of over 30%, with more than 20,000 active businesses using the service.
To further streamline operations for its users, Remitly Global Inc. is introducing two new features for its US customers: Bulk Payments and Send by Link. Bulk Payments allows business owners to pay multiple international contractors and suppliers simultaneously within a single workflow. Send by Link minimizes transfer errors and data security risks by allowing senders to initiate payments using only a recipient’s email and phone number, leaving the recipient to securely input their own sensitive banking information.
The expansion into Canada builds on a decade of local operations, supported by a Vancouver-based office, registration under Canada’s Retail Payment Activities Act, and a localized payment network that includes Interac e-Transfers. Currently, Remitly Business is active across the US, UK, and Canada, while Send by Link is generally available in the US, and Bulk Payments is undergoing a phased rollout to select US clients.
Remitly Global Inc. provides financial services, specifically cross border remittance services, globally. The company is based in Seattle, Washington.
9. Bitdeer Technologies Group (NASDAQ:BTDR)
Average Upside Potential: 39.63%
Bitdeer Technologies Group (NASDAQ:BTDR) is one of the best new tech stocks with highest upside potential. On May 14, Bitdeer Technologies released its unaudited financial results for Q1 2026. Total revenue for the quarter rose significantly to $188.9 million, compared to $70.1 million in Q1 2025. However, the cost of revenue increased to $228.0 million, resulting in a gross loss of $39.0 million and a net loss of $159.5 million.
Chief Business Officer Matt Kong highlighted the company’s execution capabilities, noting the launch of the efficient SEALMINER A4 mining rig to advance its hardware platform. The company also initiated development on the Tydal facility in Norway, which is projected to become the country’s largest operational AI data center upon completion. Additionally, Bitdeer’s AI Cloud business expanded, recently surpassing $69 million in annualized run-rate revenue.
The company’s operations are supported by a global power portfolio of approximately 3.0 gigawatts. Management is currently in advanced negotiations with a credit-worthy colocation tenant for the Tydal facility and remains confident in finalization. Looking ahead, leadership believes 2026 will serve as a defining year for Bitdeer Technologies Group as an AI infrastructure platform.
Bitdeer Technologies Group is a technology company specializing in blockchain and computing, offering hash rate sharing solutions, including Cloud hash rate and one-stop mining machine hosting solutions for efficient cryptocurrency mining.
8. Netskope Inc. (NASDAQ:NTSK)
Average Upside Potential: 42.08%
Netskope Inc. (NASDAQ:NTSK) is one of the best new tech stocks with highest upside potential. On May 21, Netskope announced an integration with the Claude Compliance API, linking Claude Enterprise with the Netskope One platform. This integration provides organizations with full visibility, advanced security controls, and robust policy enforcement. It allows enterprise customers to maintain regulatory compliance and secure their Claude workflows without adding operational overhead.
The collaboration comes as adoption of Anthropic’s Claude grew from 56.2% to 94.9% between April 2025 and 2026, driven by rapid enterprise AI adoption. The Claude Compliance API offers real-time, programmatic access to usage data and customer content. This enables IT and security teams to build continuous monitoring and automated policy enforcement systems instead of relying on manual reviews.
Through this integration, security teams can automatically inventory their entire Claude environment, apply data loss prevention policies, and run threat protection engines on shared files. It also continuously evaluates Claude’s configuration against major compliance frameworks like GDPR and HIPAA, and provides lifecycle governance over API keys. The integration will be available in private preview for customers in June.
Netskope Inc. specializes in cloud-native security, protecting data, users, and applications. It enables secure digital transformation and safe cloud usage from any location or device.
7. Sportradar Group (NASDAQ:SRAD)
Average Upside Potential: 42.16%
Sportradar Group (NASDAQ:SRAD) is one of the best new tech stocks with highest upside potential. On April 28, Sportradar appointed gaming and digital industry executive Sameer Deen as its new Chief Operating Officer, effective May 18. Reporting directly to CEO Carsten Koerl, Deen is to oversee Commercial and Group Operations while collaborating with the executive team to advance the company’s strategy.
His appointment aims to drive Sportradar’s next phase of growth and strategic innovation in the sports technology sector. Deen brings more than 25 years of experience across the sports betting, media, and digital commerce industries. Most recently, he served as Chief Commercial Officer and President at Entain, where he was instrumental in scaling the company’s commercial footprint and operational efficiencies. His background also includes serving as Chief Digital Officer at Univision Communications and holding senior leadership roles at Scripps Networks Interactive.
In his new role, Deen is to focus on driving and optimizing Sportradar’s commercial operations and partnerships to serve the evolving needs of clients and partners. Both leadership and Deen expressed excitement about the appointment, highlighting Sportradar’s position at the intersection of sports, technology, and user experiences.
Sportradar Group provides sports betting and entertainment products and services, with its products including Betting Technology & Solutions and Sports Content, Technology & Services.
6. Life360 Inc. (NASDAQ:LIF)
Average Upside Potential: 47.31%
Life360 Inc. (NASDAQ:LIF) is one of the best new tech stocks with highest upside potential. On May 11, Life360 announced record-breaking financial results for Q1 2026, driven by momentum in both subscription and advertising revenue. Total revenue for the quarter grew 38% year-over-year to $143.1 million, while Annualized Monthly Revenue increased 32% year-over-year to $517.9 million.
The platform achieved major milestones in user engagement, with Monthly Active Users growing 17% year-over-year to approximately 97.8 million. Global net additions reached a record 201 thousand Paying Circles, bringing the total to 3.0 million. Additionally, the company disclosed its advertising revenue separately for the first time, which surged 329% year-over-year to a record $19.7 million following the acquisition of Nativo.
CEO Lauren Antonoff highlighted the accelerating role of AI in transforming Life360 into a comprehensive family safety and connection app. CFO Russell Burke noted that the company generated $17.2 million in operating cash flows during the quarter, up 42% year-over-year. Looking forward, management expects revenue growth to accelerate in H2 2026, supported by strategic investments in international expansion, advertising scale, and product innovation.
Life360 Inc. provides a family safety mobile app used by millions around the world. The app helps with functions like real-time tracking and location history. It also offers safety features like SOS alerts and crash detection. Families use it to stay connected and ensure their safety.
5. DLocal Limited (NASDAQ:DLO)
Average Upside Potential: 48.03%
DLocal Limited (NASDAQ:DLO) is one of the best new tech stocks with highest upside potential. On May 14, DLocal Limited reported strong Q1 2026 financial results, with Total Payment Volume/TPV surpassing $14 billion for the first time, marking a 73% year-over-year increase. Revenues rose 55% year-over-year to $335.9 million, driven by robust base business momentum and secular tailwinds across emerging markets.
The company recorded a one-off, prior-period tax adjustment of $9.7 million during the quarter, which impacted net and operating results. Excluding this non-recurring item, operating profit grew 25% year-over-year to $57.2 million, and net income increased 11% year-over-year to $51.6 million. Normalized operating expenses grew 58% year-over-year due to the expected carry-over of investment cycle costs from late 2025, though operating leverage is expected to improve in H2 2026.
Adjusted free cash flow for the quarter was $14.7 million, down from prior periods due to temporary working capital effects and timing variations that management expects to reverse. As of March 31, DLocal Limited maintained a solid liquidity position with $815.6 million in total cash and cash equivalents, including $451.8 million in corporate cash. CEO Pedro Arnt expressed confidence in the company’s long-term outlook, confirming that full-year guidance remains unchanged.
DLocal Limited is a fintech company that provides a cross-border payment processing platform, allowing global merchants to accept payments and make payouts in emerging markets.
4. Full Truck Alliance Co. Ltd. (NYSE:YMM)
Average Upside Potential: 50.82%
Full Truck Alliance Co. Ltd. (NYSE:YMM) is one of the best new tech stocks with highest upside potential. On May 21, Full Truck Alliance announced its unaudited financial results for Q1 2026, reporting a 5.5% year-over-year increase in total net revenues to RMB2,848.4 million ($412.9 million). Net income for the quarter was RMB994.1 million ($144.1 million), compared to RMB1,278.9 million in the same period last year, while non-GAAP adjusted net income reached RMB1,202.0 million ($174.3 million).
Operational metrics showed robust growth, with fulfilled orders rising 14.3% year-over-year to 55.0 million. The digital freight platform also saw average shipper MAUs expand by 12.7% to reach 3.11 million. Growth was heavily supported by transaction service revenue, which surged over 33% year-over-year to RMB1.39 billion, reflecting ongoing improvements in the company’s revenue mix.
Founder and CEO Peter Hui Zhang attributed the performance to strengthening network effects and increased activity from both shippers and truckers. President Langbo Guo noted that revenue excluding freight brokerage services grew 17% year-over-year, driven by enhancements in user experience. Looking forward, management plans to accelerate the integration of AI across core logistics workflows to lower costs, improve efficiency, and capture new long-term growth opportunities.
Full Truck Alliance Co. Ltd. creates and operates mobile and website platforms that offer comprehensive services that connect shippers and truckers to facilitate shipments across distance ranges, cargo weights, and types.
3. Zeta Global Holdings Corp. (NYSE:ZETA)
Average Upside Potential: 56.08%
Zeta Global Holdings Corp. (NYSE:ZETA) is one of the best new tech stocks with highest upside potential. On May 14, Zeta joined the Open Semantic Interchange/OSI, an open-source initiative led by Snowflake alongside ecosystem partners across multiple industries. The collaborative effort aims to establish a universal, vendor-neutral specification to standardize fragmented data definitions. The initiative enhances interoperability across dashboards, notebooks, and machine learning models to eliminate friction within the data ecosystem.
The standard addresses the operational challenges that arise when fragmented data definitions erode trust in enterprise analytics and artificial intelligence. By facilitating a seamless metadata exchange, OSI helps organizations unify their core business metrics, streamline operations, and reduce integration complexity. This unified data foundation allows enterprises to achieve more accurate data analysis, accelerate the adoption of BI tools, and safely build the next generation of AI applications.
As a member of OSI, Zeta Global Holdings Corp. will help develop this community-driven standard, ensuring its Zeta Marketing Platform data and consumer signals interoperate cleanly with broader enterprise data stacks. Christian Monberg, CTO of Zeta Global, emphasized that a common foundation for defining business metrics is essential for unlocking consistent marketing insights.
Zeta Global Holdings Corp. is a New York-based operator of an omnichannel data-driven cloud platform. Founded in 2007, the company provides enterprises with consumer intelligence and marketing automation software.
2. Chime Financial Inc. (NASDAQ:CHYM)
Average Upside Potential: 64.84%
Chime Financial Inc. (NASDAQ:CHYM) is one of the best new tech stocks with highest upside potential. On May 6, Chime reported strong Q1 2026 financial results, achieving its first ever quarter of GAAP profitability. Total revenue grew 25% year-over-year to $647 million, driven by a 15% increase in payments revenue and a 50% surge in platform-related revenue. Net income reached $53 million, prompting management to raise full-year guidance and authorize an additional $200 million share repurchase.
The platform expanded its user base by 19% year-over-year to 10.2 million Active Members, securing its rank as the top US choice for new checking account openings. Growth was supported by the launch of Chime Prime, a premium fee-free tier that improved member retention and accelerated credit spending via the Chime Card. Additionally, the MyPay feature generated over $400 million in annualized revenue, while Instant Loans originations reached $180 million.
Operationally, Chime expanded its portfolio by signing four new major employer partners, including First Student. Operational efficiency also saw a significant boost from AI integration within product and engineering teams, where AI-assisted code development scaled from 29% to 84% of code shipped over four months. This technological integration allowed Chime Financial Inc. to increase overall product velocity while keeping its headcount flat.
Chime Financial Inc. is an American financial technology company that provides a wide range of low-cost banking and payments products and services.
1. Klaviyo Inc. (NYSE:KVYO)
Average Upside Potential: 98.41%
Klaviyo Inc. (NYSE:KVYO) is one of the best new tech stocks with highest upside potential. On May 7, Klaviyo announced an expanded integration with Anthropic to bring new agentic marketing workflows to Claude. By connecting Klaviyo’s Model Context Protocol/MCP server across Claude.ai and Claude Cowork, brands can securely access customer and performance data. This setup allows teams to use NL to analyze marketing flows, identify customer segments, and generate real-time reports without manual data exports.
The updated MCP capabilities introduce a metric reporting tool that exposes raw performance data, allowing Claude to pull records, reason across them, and produce ready-to-use campaign briefs or audits. In Claude Cowork, this data connection enables fully orchestrated, unattended workflows across a marketer’s desktop environment. Users can simply describe a desired outcome, and Claude can pull data, write copy, format documents, and save files automatically.
This integration is part of Klaviyo Inc.’s (NYSE:KVYO) broader, model-agnostic strategy to embed trusted customer context directly into popular enterprise AI tools. Beyond traditional retail, the application extends to industries like hospitality, where businesses can analyze guest engagement data to optimize targeted re-engagement campaigns.
Klaviyo Inc. delivers an AI-first SaaS platform for B2C clients that supports customer relationship management. The platform enables data storage, campaigns, marketing automation, and analytics.
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