In this article, we discuss Billionaire Chase Coleman’s 10 Stocks with Huge Upside Potential.
Equity markets achieved an unprecedented winning streak over the past two years at the back of an artificial intelligence-driven run. Major US indices were on a roll, soaring to record highs as investors tailored their investments to opportunities around the revolutionary technology. Chase Coleman is one hedge fund manager who benefited from the impressive run by investing his hedge fund’s money in some of the top-performing AI stocks.
Founded by Coleman in 2001, Tiger Global Management LLC was one of the best-performing hedge funds after gaining 24% in 2024. The impressive return came on the billionaire investor betting on some of the biggest companies with significant exposure to artificial intelligence.
Fast forward, Coleman is one of the most significant casualties of the broader stock market correction. With the S&P 500 pulling back by about 6% and tech-heavy Nasdaq down by about 8%, the billionaire investor has felt the full brunt of the artificial intelligence-driven run cooling off. A good number of Tiger Global Management stock holdings have shed more than 10% in market value as the overall stock market correction gathers steam.
READ ALSO: Billionaire Seth Klarman’s 10 Stock Picks with Huge Upside Potential and Billionaire Andreas Halvorsen’s 10 Stock Picks With Huge Upside Potential.
While up to 20% pullbacks might rattle most investors, billionaire Investor Coleman’s strategy focuses on long-term investing. Consequently, he is never perturbed by short-term market corrections. Coleman continues to maintain significant holdings in tech giants on expectations the segment will continue growing amid the artificial intelligence boom.
“Think about it in terms of companies investing in these technologies, and how well they use it,” he said, giving the example of Amazon using ChatGPT to facilitate shopping. “It’s going to be gradual. Be patient.”
With that, let’s take a look at billionaire Chase Coleman’s top stock picks with huge upside potential.
Chase Coleman of Tiger Global
Our Methodology
We combed Tiger Group Management LLC SEC Q4 2024 13F filings to identify Billionaire Chase Coleman’s 10 Stocks with Huge Upside Potential. We focused on stocks that have pulled back significantly and therefore command significant upside potential. We then analyzed the stocks on why they stand out, as solid value investments. Finally, we ranked the stocks in ascending order based on their upside potential.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Billionaire Chase Coleman’s 10 Stocks with Huge Upside Potential
10. Amazon.com Inc. (NASDAQ:AMZN)
Tiger Global Management LLC’s Stake Value: $1.41 Billion
Upside Potential as of April 30: 30.91%
Number of Hedge Fund Holders: 338
Amazon.com Inc. (NASDAQ:AMZN) is a multinational technology giant that retails consumer products online while engaging in advertising and cloud computing. While the stock has pulled back significantly on trade war concerns, down by 14% year to date, it is one of billionaire Chase Coleman’s stocks with huge upside potential. Wedbush has reiterated an Outperform rating on the stock and raised its price target to $235 from $225 as the tech giant delivered solid Q1 2025 amid the tariff threat.
The fact that around 18% of goods sold on the Amazon platform are sourced from China underscores how the company is susceptible to the tariff war. Nevertheless, it delivered $1.59 in earnings per share in Q1 2025, above the $1.36 share that analysts expected. Revenues came in at $155.67 billion, above consensus estimates of $155 billion. Likewise, the advertising business grew by 19% and the cloud unit posted a 17% increase in revenues to $29.27 billion, slightly below the $29.42 billion expected.
Given that the cloud infrastructure market was valued at $330 billion in 2023 and growing at more than 20% annually, AWS is well positioned for long-term growth as AI spending increases. Amazon.com Inc. (NASDAQ:AMZN) is the market leader in the segment, with its AI revenue growing at a triple-digit percentage annually. The tech giant is also developing its own AI chips to strengthen its growth opportunities.
9. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Tiger Global Management LLC’s Stake Value: $717.87 Million
Upside Potential as of April 30: 32.84%
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest semiconductor foundry. It specializes in manufacturing chips for other companies, including Apple. While the stock has slumped 18% year-to-date, it is one of billionaire Chase Coleman’s stocks with tremendous upside potential amid the artificial intelligence revolution. Analysts at Bernstein have reiterated an Outperform rating on the stock with a $251 price target.
The Outperform rating comes on the heels of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), which delivered March revenue of NT$286 billion above the high end of guidance and above consensus estimates. Its first quarter 2025 revenue was up 42% year over year to NT$839 billion, affirming strong demand for the company’s foundry services. The company’s competitive edge stems from its 3 nanometer technology that ensures chip traces are spaced at a minimum of 3nm.
With the company planning to launch 2nm and 1.6nm chips, it is sure to strengthen its competitive edge and attract more deals amid the push for small and powerful chips. The fact that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) does not compete against its clients Nvidia, Apple, and Broadcom affirms its growth prospects in the sector. It has also unveiled its next cutting-edge logic process technology, A14, as it seeks to drive AI transformation by delivering faster computing and greater power efficiency.
8. Flutter Entertainment plc (NYSE:FLUT)
Tiger Global Management LLC’s Stake Value: $872.89 Million
Upside Potential as of April 30: 34.74%
Number of Hedge Fund Holders: 97
Flutter Entertainment plc (NYSE:FLUT) is a leading sports betting and gaming company that provides sportsbooks and iGaming products, such as blackjack, roulette, and slot machines. On April 22, BTIG analyst Clark Lampen lowered the firm’s price target on Flutter Entertainment (FLUT) to $289 from $323 while maintaining a Buy rating. BTIG noted that, despite a fluid macro and risk backdrop, the OUS B2C and US B2B segments remained the strongest setups in its coverage. March Madness-related revisions had been mostly absorbed, and the firm believed shares were poised for the next positive development.
Flutter Entertainment plc (NYSE:FLUT) is increasingly enhancing its operations through the Fan Duel Casino business. The rollout of the “Your Way” product is also expected to accelerate growth in the sportsbook segment. In addition, the company is pursuing growth opportunities focusing on Italy and Brazil. The gaming powerhouse has already completed the acquisition of Snaitech S.p.A part of its expansion and growth strategy.
The acquisition of Snaitech enhances Flutter Entertainment’s prospects in the Italian market, which already includes PokerStars, Betfair, and Tombola. A robust retail presence complements its internet activities. Snaitech has 2,000 retail locations throughout Italy. With a 19% market share, it is Italy’s second-largest retail betting operator. With a 14% share, Flutter Entertainment plc (NYSE:FLUT) is the nation’s second-largest retail gaming company.
7. QUALCOMM Incorporated (NASDAQ:QCOM)
Tiger Global Management LLC’s Stake Value: $285.38 Million
Upside Potential as of April 30: 34.89%
Number of Hedge Fund Holders: 79
QUALCOMM Incorporated (NASDAQ:QCOM) is a technology company that designs and manufactures semiconductors and wireless telecommunications products, including mobile chipsets. It also engages in research and standardization efforts related to mobile telecommunications, owning patents for various standards like 5G, 4G, and others.
At a time when most chip companies are under immense pressure, QUALCOMM Incorporated (NASDAQ:QCOM) has held steady, supported by solid financial results. The company has beaten earnings estimates in its nine most recent quarters, suggesting it will continue doing so in 2025. While there have been concerns that Apple could end up phasing out the company’s modems in the second half of the year, it continues to enjoy strong momentum in the automotive sector driven by new vehicle launches.
JPMorgan has reiterated an Overweight rating on the stock with a $185 price target buoyed by the company’s push to diversify its streams away from smartphone revenues. QUALCOMM Incorporated (NASDAQ:QCOM) is increasingly reducing its dependence on smartphone sales amid a renewed focus on Internet of Things solutions.
Additionally, QUALCOMM Incorporated (NASDAQ:QCOM) is pursuing opportunities around AI. It has completed the acquisition of Vine’s generative AI division, marking its continued expansion in the AI tooling sector. In addition, reports indicate the company is contemplating acquiring UK-based Alphawave IP Group PLC, which designs high-speed connectivity solutions used in data centers that train and run AI technology.
6. Applied Materials, Inc. (NASDAQ:AMAT)
Tiger Global Management LLC’s Stake Value: $145.59 Million
Upside Potential as of April 30: 35.76%
Number of Hedge Fund Holders: 80
Applied Materials, Inc. (NASDAQ:AMAT) is a technology company that provides manufacturing equipment, services, and software to the semiconductor industry. It develops, manufactures, and sells semiconductor equipment used to fabricate semiconductor chips or integrated circuits. Barclays has stuck with a Hold rating on the stock with a $160 price target despite it going down by about 8% year to date.
The 8% slide comes on investors becoming increasingly weary of Applied Materials, Inc.’s (NASDAQ:AMAT) near-term prospects amid higher costs and global trade tensions due to the US-China trade and tariff war. AMAT’s position in a market that generated 30% of its $26.5 billion in revenue last year is further threatened by China’s retaliatory tariffs on American exports. Tariffs on specialized resources, such as rare-earth metals or high-purity silicon, might drive up prices, forcing the company to either absorb the loss or pass it on, which could backfire on customers.
Applied Materials, Inc. (NASDAQ:AMAT) has already purchased 9% of the outstanding share of BE Semiconductor Industries as it seeks to strengthen its prospects in manufacturing assembly for die-based hybrid bonding. Hybrid bonding solutions are becoming increasingly important in developing advanced logic and memory chips at the foundation of AI.
5. PDD Holdings Inc. (NASDAQ:PDD)
Tiger Global Management LLC’s Stake Value: $254.96 Million
Upside Potential as of April 30: 35.89%
Number of Hedge Fund Holders: 85
PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group that operates an e-commerce platform aiming to bring more businesses and people into the digital economy. The platform provides various product categories, including agricultural produce, apparel, and childcare products.
The launch of Temu, a cross-border marketplace available in over 40 countries, has been the catalyst for strengthening PDD Holdings Inc.’s (NASDAQ:PDD) growth metrics. The platform has expanded PDD Holdings’ footprint beyond China, allowing it to diversify its revenue base. It also delivered solid fourth quarter 2024 results characterized by a 24% revenue growth to $15.15 billion. The increase was driven by a 33% increase in revenue from transaction services. Its profit rose 14% to $3.5 billion in the quarter as net income jumped 18% to $3.76 billion.
The better-than-expected financials is one of the catalysts behind the stock rallying 7% year to date as the S&P 500 is down by about 6%. In March, Benchmark analysts reaffirmed their Buy rating and maintained a $160.00 price target for Pinduoduo Inc. (NASDAQ: PDD). Analysts on Wall Street are optimistic that PDD Holdings Inc. (NASDAQ:PDD) will grow at a compound annual growth rate of 38% to 2026 as it gains significant market share in China.
4. UnitedHealth Group Inc. (NYSE:UNH)
Tiger Global Management LLC’s Stake Value: $221.97 Million
Upside Potential as of April 30: 38.06%
Number of Hedge Fund Holders: 150
UnitedHealth Group Inc. (NYSE:UNH) is a health care and well-being company offering consumer-oriented health benefit plans and services for national, public sector, and mid-sized employers. It also provides pharmacy care services and programs. The stock has been under pressure, going down by about 18% as escalating medical costs continue to raise serious concerns.
The healthcare benefits company delivered disappointing first quarter 2025 results that missed estimates as it continues to feel the effects of rising medical costs of people enrolled in Medicare plans. Consequently, UnitedHealth Group Inc. (NYSE:UNH) delivered earnings per share of $7.20 for Q1 2025 against $7.29 a share expected. It also slashed its full-year adjusted earnings outlook to between $26 and $26.50 a share against a previous outlook of $29.50 to $30.
Amid the disappointing results, UnitedHealth Group Inc. (NYSE:UNH) is staring at a significant increase in federal rates for insurers under the Medicare Advantage. In addition, the company continues to register significant growth, going by the 9.8% revenue growth in Q1 to $109.5 billion. It also added 780,000 new customers in the quarter, further cementing its position. It also remains one of billionaire Chase Coleman’s 10 stocks with tremendous upside potential as it continues to reward investors with a competitive 2.01% dividend yield.
On April 23, RBC Capital Markets lowered UnitedHealth Group Inc. (NYSE:UNH) price target to $525 from $655 while keeping its Outperform rating. The revision followed a review of Q1 2025 earnings, where analysts, led by Ben Hendrix, cited lower-than-expected Optum Health member engagement, affecting reimbursements.
3. Datadog, Inc. (NASDAQ:DDOG)
Tiger Global Management LLC’s Stake Value: $139.95 Million
Upside Potential as of April 30: 44.21%
Number of Hedge Fund Holders: 83
Datadog, Inc. (NASDAQ:DDOG) is a software application company that operates an observability and security platform for cloud applications. Its products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, and data observability. While the stock has shed nearly 28% in market value year-to-date, it is still one of billionaire Chase Coleman’s top stocks with significant upside potential. On April 16, Morgan Stanley reiterated a Hold rating on the stock with a $115 price target.
The stock has been under pressure as a slowdown in customer spending on its solutions in the fourth quarter of 2024 dented its sentiments in the market. Datadog, Inc. (NASDAQ:DDOG) forecasted a decline in 2025 earnings growth, which exacerbated the situation. Its revenue in 2024 was up 26% year-over-year to $2.7 billion as earnings surged 38%. Nevertheless, the company said its revenues could increase by 18%, much slower than in 2024, with earnings expected to only increase by high single digits.
Through 2028, Datadog, Inc. (NASDAQ:DDOG) projects that the cloud observability and security markets will grow at a robust double-digit rate annually. Given that the aggregate value of these markets was $79 billion last year, the company is staring at tremendous opportunities amid the expected growth. It already boasts a solid base of 30,000 customers and a sizable addressable market that affirms its revenue base.
2. Elastic N.V. (NYSE:ESTC)
Tiger Global Management LLC’s Stake Value: $167.51 Million
Upside Potential as of April: 55.22%
Number of Hedge Fund Holders: 64
Elastic N.V. (NYSE:ESTC) is a search artificial intelligence (AI) company that delivers hosted and managed solutions designed to run in hybrid, public, or private clouds. It offers Elastic Stack, a set of software products that ingest and store data from various sources and formats. While the stock is down by about 13% as the AI-driven rally fizzles, analysts at Stifel maintain a positive stance with a Buy rating and a $140 price target.
According to analysts, Elastic N.V. (NYSE:ESTC) is staring at tremendous opportunities for growth in its focus on the cloud amid the growth in the generative AI market. The growth has been the catalyst behind the company’s 17.95% revenue growth over the past 12 months, backed by a healthy 74.27% gross profit margin.
The analytics software company delivered better than expected third quarter fiscal 2025 results driven by strong demand for products related to artificial intelligence. Earnings per share came in at 63 cents, above analyst estimates, as revenue increased 17% year over year to $382.1 million. The results were better than expected as customers building generative AI applications increasingly leveraged its solutions.
1. NVIDIA Corp (NASDAQ:NVDA)
Tiger Global Management LLC’s Stake Value: $1.3 Billion
Upside Potential as of April 30: 56.55%
Number of Hedge Fund Holders: 223
NVIDIA Corp (NASDAQ:NVDA) is a technology giant that engineers the most advanced chips, systems, and software key to the artificial intelligence revolution. It is best known for its graphic processing units used in AI models and data centers. After years of blockbuster gains, the stock has pulled back by about 21% year-to-date on the AI-driven rally fizzling. Amid the pullback, it is one billionaire Chase Coleman’s stocks with huge upside potential as spending on AI infrastructure soars.
On April 28, Morgan Stanley reiterated an Overweight rating on NVIDIA Corp (NASDAQ:NVDA) and cut the price target to $160 from $162. The bullish stance comes on growing optimism that the need for more inference chips will drive demand for Nvidia’s chips even as the company faces strong supply export controls. The chip giant has already warned it will lose about $5.5 billion in revenue owing to new restrictions on the sale of its H20 series, tailored explicitly for the Chinese market. Nevertheless, the $5.5 billion hit represents a portion of about $16 billion in H20 orders, with over $10 billion worth of products already shipped.
Amid the headwinds, analysts at Mizuho are optimistic about NVIDIA Corp’s (NASDAQ:NVDA) long-term prospects, especially with the shipment of the GB200 series and the expansion of testing capacity for more complex GPU racks. Additionally, the semiconductor heavyweight boasts of a solid 114.2% revenue growth over the last 12 months and remains in a solid, liquid position to weather the near-term headwinds.
While we acknowledge the potential of NVIDIA Corp (NASDAQ:NVDA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
