Technology stocks remain volatile amid rising AI adoption. Contrary to what many people initially thought, AI could significantly disrupt many tech companies, rather than help them improve their offerings. Software stocks took a huge hit this week as tools like automated task schedulers and custom code generators became more powerful by the day. Earnings reports from Microsoft and SAP have further fueled these concerns. The AI trade is becoming increasingly overcrowded, and with Big Tech driving most of the market gains in the past three years, investors are unsure where to go.
According to Bloomberg Intelligence, Big Tech companies are expected to post a 20% earnings growth rate in Q4. This is the slowest rate since early 2023, and it is this factor that forced investors out of major tech stocks at the end of 2025. This trend could continue in 2026, according to analysts at Ned Davis Research:
If revision trends continue to suggest earnings will broaden throughout 2026, it could support the case for the value rotation that began at the end of October to persist in 2026.
At Miller Tabak & Co., Matt Maley echoed similar concerns, saying:
The AI theme is overcrowded, and investors are revaluing the AI trade, so they are re-weighting big-tech stocks in their portfolios.
Despite these concerns, there are several companies that Wall Street remains bullish on. In this article, we decided to compile a list of the 12 tech stocks with the greatest upside potential.
Our methodology
To identify 12 tech stocks with the greatest upside potential, we used the Finviz screener to generate a list of Tech stocks with a market cap of at least $2 billion. We then used the CNN analyst ratings compilation to determine the median upside for each stock as of January 30, 2026. We then ranked the top 12 stocks in ascending order of their upside potential. We have also included the number of hedge funds that hold the stock as of Q3 2025.
Why do we care about what hedge funds do? 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. IonQ, Inc. (NYSE:IONQ)
Potential Upside: 74.77%
Number of Hedge Fund Holders: 30
Despite recent stock volatility, IonQ maintains a market capitalization of $16.12 billion and strong liquidity. The company announced on January 28 that it had completed its acquisition of Skyloom Global, a US-based developer of lightwave-optics technology for secure communications. The transaction was initially disclosed in November 2025. Niccolo de Masi, Chairman and CEO of the company, described the acquisition as a key step toward scalable quantum networking.
The company highlighted the potential impact of this acquisition by saying:
The acquisition strengthens IonQ’s quantum networking roadmap by adding Skyloom’s deep expertise in free-space optical communications, photonic systems engineering, and secure data transmission. These capabilities are expected to accelerate IonQ’s work across quantum networking, quantum key distribution, and future quantum-enabled communications infrastructure.
The Skyloom acquisition follows other strategic moves aimed at strengthening the company’s long-term position in the quantum ecosystem. On January 26, Wedbush Securities described IonQ’s proposed $1.8 billion acquisition of SkyWater Technologies as a “positive step forward”, emphasizing that it could position the company as a potential quantum champion. The acquisition is expected to accelerate production and chip design for its 200K and 2M qubit systems.
Wedbush analyst Antoine Legault stated:
In our view, the most significant competitive advantage for IONQ will be the ability to bring manufacturing and packaging in-house to accelerate its development cycle (IONQ expects cycle times to reduce from 9 to 2 months) while also receiving instant and critical engineering feedback on each iteration of its quantum systems. We note that this acquisition would make IONQ the only vertically integrated trapped-ion player.
Together, the completed Skyloom Global deal and the planned SkyWater acquisition highlight the company’s strategy to expand across both quantum networking and manufacturing, supporting faster development cycles.
IonQ, Inc. (NYSE:IONQ) operates as a developer of quantum computers and networks across the United States. The company sells access to quantum computers of various qubit capacities. It is also involved in quantum detection systems and quantum-safe networking. IonQ was founded in 2015 and is based in College Park, Maryland.
11. Sportradar Group AG (NASDAQ:SRAD)
Potential Upside: 77.79%
Number of Hedge Fund Holders: 31
Samuel Nielsen of JPMorgan lowered the firm’s price target on Sportradar Group AG (NASDAQ:SRAD) from $35 to $30 while reaffirming a Buy rating on January 23. The revised price target offers a further 64.84% upside from the current levels. The price target adjustment was made as part of the firm’s fourth-quarter earnings preview, during which it revised price targets across the broader gaming sector.
In a research note to investors, the analyst said gaming stocks are currently weighed down by considerable negativity, suggesting that investors should take a more selective approach within the space. Against this challenging environment, JPMorgan highlighted the digital segment as offering the most attractive investment opportunity. The firm believes this area has the greatest potential to deliver earnings growth.
Further supporting the positive analyst outlook, Stifel Nicolaus initiated coverage of Sportradar with a Buy rating and assigned a price target of $28 on January 22. The firm described the stock as a compelling picks-and-shovels beneficiary of online sports betting growth, citing its recurring, predictable revenue base, low hold and tax risk, near-zero churn, and a wide moat supported by its scale and broad product portfolio.
Sportradar Group AG (NASDAQ:SRAD) operates as a provider of sports data services for the sports betting and media industries across the United States, Switzerland, Africa, the Middle East, North America, Latin America, the Asia Pacific, the Caribbean, and Europe. The company was founded in 2001 and is based in Sankt Gallen, Switzerland.
10. D-Wave Quantum Inc. (NYSE:QBTS)
Potential Upside: 79.37%
Number of Hedge Fund Holders: 28
Following a series of new agreements announced by the company, Wedbush raised its price target for D-Wave Quantum Inc. (NYSE:QBTS) from $35 to $40 while maintaining a Buy rating on January 28. Wedbush analyst Dan Ives was optimistic about the company’s announcement of a $10 million, two-year enterprise Quantum Computing as a Service (QCaaS) agreement with a leading Fortune 100 company. The firm views this deal as validation of growing commercial adoption. Wedbush also cited Florida Atlantic University’s plan to install an Advantage2 quantum computer in 2026, expanded hybrid solver capabilities, new defense-related collaborations, and progress on the company’s gate-model roadmap following the QuantumCircuits.
Additionally, on January 28, Roth MKM analyst Sujeeva De Silva also reiterated a Buy rating along with the price target of $40 for the shares. The firm’s price target implies a further 87% upside from current levels, slightly above the Median Wall Street analyst estimate, based on 14 analysts covering the stock.
D-Wave Quantum Inc. (NYSE:QBTS) delivers and develops quantum computing systems, services, and software internationally. It provides Ocean, a suite of open-source tools; Advantage and Advantage 2 quantum computers; Leap quantum cloud service; and secure access and data protection services.
