Billionaire David E. Shaw’s 10 Small-Cap Stock Picks with Huge Upside Potential

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1. Moderna, Inc. (NASDAQ:MRNA)

D. E. Shaw’s Equity Stake: $73.54 Million

Market Capitalization as of May: $9.62 billion

Stock Upside Potential as of May 9: 91.63%

Number of Hedge Fund Holders: 44

Moderna, Inc. (NASDAQ:MRNA) is a biotechnology company that provides messenger RNA medicines. The company’s respiratory vaccines include Spikevax, mRESVIA, COVID-19, RSV, seasonal influenza, combination, and pandemic influenza. It’s also known for treatment across infectious diseases, oncology, and rare diseases. Shares of the Massachusetts company have declined significantly over the past year, attributed to the company facing setbacks on its pipeline.

The US Federal Drug Administration is requesting Phase 3 flu efficacy data for its COVID-19 and FLU combo vaccine. Moderna, Inc. (NASDAQ:MRNA) won’t be able to release the mRNA vaccine as expected in 2025. Nevertheless, a recent study has shown that combining the company’s flu and COVID-19 vaccine using messenger RNA generated antibodies and a stronger immune response. The combo shot can improve vaccination rates, which would be a significant boon for the company.

In addition, Moderna, Inc. (NASDAQ:MRNA) is angling for the approval of the mRNA technology that is currently only used in approved COVID-19 and RSV shots. Approval of the technology should end up speeding up the production of flu shots compared to traditional shots. The push comes as UBS maintains a Buy rating of the stock, even after cutting the price target to $70 from $78.

While we acknowledge the potential of Moderna, Inc. (NASDAQ:MRNA) 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 MRNA 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.

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