12 Best New Tech Stocks With Highest Upside Potential

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.

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. (NASDAQ:RELY) 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. (NASDAQ:RELY) 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 (NASDAQ:BTDR) as an AI infrastructure platform.

Bitdeer Technologies Group (NASDAQ:BTDR) 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. (NASDAQ:NTSK) 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 (NASDAQ:SRAD) 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. (NASDAQ:LIF) 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.

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