In this article, we will discuss Billionaire Nicholas J. Pritzker’s 8 Stocks with Huge Upside Potential.
Nicholas J. Pritzker is the chairman and co-founder of Tao Capital Partners, a San Francisco-based venture capital firm established in 2013. A prominent American entrepreneur and member of the influential Pritzker family, Nicholas Pritzker is widely recognized for his business acumen and leadership within both the family’s ventures and his own independent endeavors. He previously served as Chairman and CEO of the Hyatt Development Corporation and is associated with the Pritzker family’s substantial business interests, including ownership stakes in Hyatt Hotels and Conwood, a leading chewing tobacco company. His academic journey includes studies at Reed College, Lake Forest College, and the London School of Economics, followed by earning a J.D. from the University of Chicago.
At Tao Capital Partners, Pritzker oversees a firm that strategically focuses on investments in technology, transportation, healthcare, education, sustainable food, alternative energy, agriculture, consumer products, real estate, and hospitality. Although he holds the role of chairman, Nicholas Pritzker is not the portfolio manager of the firm. Instead, that position is held by Matthias Brachtel, who is responsible for managing the firm’s investment portfolio and making critical financial decisions. Under their leadership, Tao Capital has established a reputation for backing innovative and sustainable ventures, emphasizing long-term positive impacts alongside financial returns.
Tao Capital Partners follows a disciplined investment philosophy, targeting sectors poised for growth and transformation. The firm’s investments include companies within the technology and transportation industries, as well as those focused on healthcare, education, sustainable food, and clean energy solutions. This diversified approach reflects the firm’s commitment to not only achieving financial gains but also fostering advancements in critical global sectors.
As of Q4 2024, Tao Capital Partners reported managing $143.28 million in 13F securities across ten core holdings. The firm’s commitment to sustainable and impactful investment aligns with Nicholas Pritzker’s broader vision of leveraging capital to drive positive change. Pritzker’s guidance continues to shape the firm’s strategic direction, while Matthias Brachtel’s portfolio management expertise ensures the optimization of returns within the chosen sectors. Through a combination of innovative vision and practical financial management, Tao Capital Partners continues to build a diverse portfolio aimed at fostering sustainable growth.
Now that we have sufficient context, let’s analyze billionaire Nicholas J. Pritzker’s 8 stock picks with huge upside potential.
Our Methodology
For this article, we searched through Tao Capital’s Q4 2024 13F filings to identify billionaire Nicholas J. Pritzker’s stock picks with the highest upside potential. We compiled the equities with upside potential higher than 2% at the time of writing this article and analyzed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
Billionaire Nicholas J. Pritzker’s 8 Stocks with Huge Upside Potential
8. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders as of Q4: 126
Tao Capital’s Equity Stake: $34.83 Million
Upside Potential as of May 8: 2.90%
Tesla, Inc. (NASDAQ:TSLA), the electric vehicle and clean energy powerhouse headquartered in Austin, Texas, reported disappointing financial results for the first quarter of 2025. Adjusted earnings per share came in at $0.27, while revenue reached $19.3 billion, both significantly below market expectations of $0.41 EPS and $21.3 billion in revenue. This marked Tesla’s weakest quarter by sales since Q2 2022 and its lowest profitability since Q1 2021, indicating a challenging start to the year.
The company’s automotive segment faced particular pressure, with revenue declining by 20% year-over-year to $14 billion, the lowest figure since Q3 2021. Additionally, Tesla, Inc. (NASDAQ:TSLA)’s reliance on automotive regulatory credits became evident, as it generated $595 million from these credits compared to just $400 million in overall operating profit, highlighting a dependency on non-core revenue streams. Vehicle deliveries also fell short, with 337,000 units delivered during the quarter—17% below consensus expectations—marking the slowest delivery growth since 2022.
Amid these financial strains, Tesla’s stock has faced increased volatility, fueled by investor concerns about CEO Elon Musk’s focus as he balances leadership at Tesla, Inc. (NASDAQ:TSLA) and other ventures. However, the board recently reaffirmed its commitment to Musk, who has pledged to dedicate more time to addressing Tesla’s operational and strategic challenges.
Despite the current headwinds, Tesla remains positioned for potential recovery. With a price target of $284.23 and an upside potential of 2.90%, Tesla, Inc. (NASDAQ:TSLA) is among billionaire Nicholas J. Pritzker’s stock picks with huge upside potential. As the company navigates economic challenges and works to stabilize vehicle production, its leadership in electric vehicles and energy solutions could catalyze a turnaround, especially as consumer preferences continue to shift toward sustainable transportation and clean energy.
Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q1 2025 investor letter:
“The underweight in Tesla, Inc. (NASDAQ:TSLA) contributed to performance in the first quarter of 2025. Tesla’s automobile sales declined in the quarter, in part due to factory changeovers that were required for updates to the company’s best-selling vehicle, the Model Y. This resulted in slower sales volume in the quarter. Competition from China’s BYD is causing market share losses for Tesla in several non-U.S. markets. The CEO’s position as an advisor to President Trump has damaged Tesla’s brand image among a cohort of traditional electric vehicle buyers.”
7. 908 Devices Inc. (NASDAQ:MASS)
Number of Hedge Fund Holders as of Q4: 9
Tao Capital’s Equity Stake: $1.25 Million
Upside Potential as of May 8: 10.50%
908 Devices Inc. (NASDAQ:MASS), a commercial-stage technology company specializing in mass spectrometry devices, reported notable growth and strategic shifts in its fourth-quarter 2024 financial results. The company, which develops handheld and desktop mass spectrometry tools for life sciences research, bioprocessing, forensics, and adjacent markets, saw revenue rise 31% year-over-year to $18.8 million. This growth was driven by a 22% increase in handheld revenue and a significant 56% surge in desktop revenue. The installed device base expanded by 23% to 3,504 units, with 219 handheld and 32 desktop devices placed during the quarter. Recurring revenue accounted for 39% of the total, indicating an ongoing commitment to long-term customer engagement.
Gross profit for Q4 2024 was $9.1 million, up from $7.3 million in the prior year, though the GAAP gross margin dipped to 48% from 51%. On an adjusted basis, gross profit increased to $10.0 million, reflecting a higher adjusted margin of 54%, compared to 53% in the same period of 2023. However, 908 Devices Inc. (NASDAQ:MASS)’s operating expenses surged to $29.4 million, primarily due to a $10.1 million non-cash charge related to goodwill impairment and the integration costs of RedWave Technology. This led to a net loss of $19.4 million for the quarter, compared to a $7.4 million loss in the prior year.
To streamline operations, 908 Devices Inc. (NASDAQ:MASS) sold its desktop assets—including MAVEN, MAVERICK, REBEL, and ZipChip products—for $70 million shortly after year-end. As of December 31, 2024, the company held $69.6 million in cash and marketable securities with no debt, maintaining financial flexibility. Looking ahead, 908 Devices anticipates full-year 2025 revenues from continuing operations of $53 million to $55 million, representing an 11% to 15% growth over 2024. This projection underscores 908 Devices Inc. (NASDAQ:MASS)’s strategic focus on handheld devices while optimizing its balance sheet through asset divestitures.
6. Hyatt Hotels Corporation (NYSE:H)
Number of Hedge Fund Holders as of Q4: 35
Tao Capital’s Equity Stake: $10.99 Million
Upside Potential as of May 8: 16.31%
Hyatt Hotels Corporation (NYSE:H), headquartered in Chicago, Illinois, is a global hospitality company known for managing and franchising luxury hotels, resorts, and vacation properties. As of the first quarter of 2025, Hyatt has continued to strengthen its market position with notable financial achievements and strategic moves.
For Q1 2025, Hyatt Hotels Corporation (NYSE:H) reported net income attributable to the corporation of $20 million, while adjusted net income stood at $46 million. Diluted earnings per share (EPS) came in at $0.19, with adjusted diluted EPS of $0.46, reflecting the company’s ability to generate positive earnings despite fluctuating economic conditions. Demonstrating shareholder commitment, Hyatt repurchased approximately 1.1 million shares of Class A common stock, amounting to $149 million.
Operationally, Hyatt witnessed a comparable system-wide hotels revenue per available room (RevPAR) increase of 5.7% compared to Q1 2024, signaling a steady recovery in guest demand and stronger pricing power. Additionally, Hyatt Hotels Corporation (NYSE:H) achieved net rooms growth of 10.5%, underlining its ongoing expansion in both domestic and international markets. These metrics reflect the successful implementation of Hyatt’s strategic growth initiatives, bolstering its position as a leader in the luxury hospitality segment.
The company’s increasing appeal among institutional investors is evident, as hedge fund interest rose significantly by the end of Q4 2024. A total of 35 hedge funds held stakes in Hyatt, compared to 22 in the previous quarter, with combined holdings valued at $577 million, according to Insider Monkey’s database. Notably, Hyatt Hotels Corporation (NYSE:H) forms 7.66% of Pritzker’s highly concentrated portfolio, highlighting its perceived long-term value and growth potential.
With a price target of $144.92 and an upside potential of 17.01%, Hyatt Hotels Corporation (NYSE:H) is among billionaire Nicholas J. Pritzker’s stock picks with huge upside potential, supported by its consistent earnings growth, shareholder-friendly strategies, and expanding global presence.
Nightview Capital stated the following regarding Hyatt Hotels Corporation (NYSE:H) in its Q4 2024 investor letter:
“Travel and entertainment are transforming as consumers prioritize experiences over material goods. This isn’t a return to pre pandemic norms—it’s a reinvention of how we connect, explore, and enjoy life. Travelers seek uniqueness and personalization, while entertainment blends digital and physical realms to create new experiences. The companies leading this evolution are redefining tradition through innovation, delivering unforgettable moments to a new generation. These businesses are not just adapting—they’re shaping the future of the experience economy.
Hyatt Hotels Corporation (NYSE:H): Core Opportunity: Hyatt’s transition to an asset-light model makes it well positioned for flexibility and stable, long-term growth. By selling properties at premium multiples and reinvesting in brand acquisitions, Hyatt is increasing its global footprint and strengthening its portfolio.
Competitive Advantage:
Loyalty Leadership: The World of Hyatt program has grown to 46 million members, a 22% YoY increase in 2024, with 30% more members per hotel than competitors.
Luxury Focus: Expanding soft brands allows Hyatt to maintain each hotel’s unique identity while benefiting from its extensive distribution network…” (Click here to read the full text)
5. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders as of Q4: 27
Tao Capital’s Equity Stake: $55,807
Upside Potential as of May 8: 23.92%
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is an American biotech company founded in 2008 by five MIT scientists, including CEO Jason Kelly. Headquartered in Boston, Massachusetts, Ginkgo Bioworks specializes in bioengineering and synthetic biology, primarily partnering with clients to develop bespoke microbes. The company’s revenue model involves upfront research fees, milestone payments, and royalties linked to the successful commercialization of engineered organisms.
For the first quarter ended March 31, 2025, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) reported total revenue of $48 million, marking a 27% increase from $38 million in the same period last year. This growth was primarily driven by an increase of $7 million in cell engineering revenue. Biosecurity revenue remained flat at $10 million year-over-year, reflecting stable demand within this segment. Notably, the company reported a GAAP net loss of $91 million, significantly reduced from a loss of $166 million in the first quarter of 2024. The improvement in financial performance was largely attributed to increased revenue and a strategic reduction in operating expenses, leading to an adjusted EBITDA of $(47) million, up from $(117) million in the prior-year period.
The company maintains a robust liquidity position, with cash, cash equivalents, and marketable securities totaling $517 million as of March 31, 2025. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) issued its 2025 guidance, projecting total revenue between $167 million and $187 million, cell engineering revenue of $117 million to $137 million, and biosecurity revenue of at least $50 million.
Investor sentiment towards Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) has grown stronger, with hedge fund interest increasing significantly. By the end of Q4 2024, 27 hedge funds tracked by Insider Monkey held stakes in the company, up from 17 in the previous quarter, with total holdings valued at $119 million. This uptick in institutional support underscores rising confidence in Ginkgo Bioworks’ growth prospects and its pioneering role in the synthetic biology sector.
4. Warby Parker Inc. (NYSE:WRBY)
Number of Hedge Fund Holders as of Q4: 34
Tao Capital’s Equity Stake: $3.26 Million
Upside Potential as of May 8: 47.17%
Warby Parker Inc. (NYSE:WRBY) is a leading American eyewear brand and retailer, headquartered in New York City. Initially launched as an online-only retailer in 2010, Warby Parker has since expanded significantly, now deriving approximately two-thirds of its revenue from its 276 physical retail stores across the U.S. and Canada. The company offers a range of eyewear products, including prescription glasses, contact lenses, sunglasses, and eye exams.
In 2024, Warby Parker Inc. (NYSE:WRBY) demonstrated strong financial performance, with full-year net revenue rising by $101.6 million (15.2%) to $771.3 million compared to the previous year. Fourth-quarter net revenue saw a robust increase of $28.8 million (17.8%) to reach $190.6 million. This growth was driven by an increase in active customers, which rose by 7.8% to 2.51 million on a trailing 12-month basis. Additionally, the average revenue per customer grew by 6.8% to $307, reflecting effective customer engagement and upselling strategies.
The company’s profitability also improved, with a gross margin of 54.1%, up from 53.8% in the prior year. Operating activities generated $98.7 million in net cash, a significant improvement from $61.0 million in 2023. Full-year free cash flow totaled $34.7 million, highlighting Warby Parker’s enhanced cash generation capabilities. Warby Parker Inc. (NYSE:WRBY) opened 41 new stores in 2024, ending the year with 276 locations, and plans to open 45 additional stores in 2025, including five shop-in-shops at select Target locations.
Warby Parker Inc. (NYSE:WRBY) has set an ambitious outlook for 2025, projecting net revenue between $878 million and $893 million, representing 14% to 16% growth. With a price target of $23.93 and an upside potential of 48.08%, Warby Parker Inc. (NYSE:WRBY) is among billionaire Nicholas J. Pritzker’s stock picks with huge upside potential. The company’s ongoing store expansion and increasing customer engagement underscore its potential for sustained growth.
Polen US SMID Company Growth Strategy stated the following regarding Warby Parker Inc. (NYSE:WRBY) in its Q4 2024 investor letter:
“Warby Parker Inc. (NYSE:WRBY), a U.S.-based omnichannel retailer of eyewear products with a unique vertically integrated direct-to-consumer business model, reported encouraging quarterly results. The company experienced strong growth in its glasses business and continued momentum in contact lenses and optometry. Investment in optometrists is yielding results, driving improved gross margins through enhanced utilization. Warby Parker appears to be emerging from a challenging period where it was adversely impacted by post-pandemic changes in consumer behavior. Company management’s steps to reduce costs appear to be paying off. More recently, we’ve seen fundamentals improve, with marketing spend recovering now that margins have settled. We believe the company has the potential to enhance its profitability as demand continues to recover and it completes and capitalizes on heavy investments in areas such as optometry services, which previously weighed on margins.”
3. Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)
Number of Hedge Fund Holders as of Q4: 40
Tao Capital’s Equity Stake: $40.28 Million
Upside Potential as of May 8: 41.96%
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is a biopharmaceutical company dedicated to developing novel therapies for metabolic dysfunction-associated steatohepatitis (MASH), a severe liver disease with significant unmet medical need. The company’s flagship product, Rezdiffra, has shown strong commercial performance since its FDA approval in March 2024, becoming the first approved therapy for F2-F3 MASH in the U.S.
In the first quarter of 2025, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) reported net revenues of $137.3 million, marking significant growth as no product sales were recognized during the same period last year. This revenue increase was primarily driven by Rezdiffra’s market penetration, which saw more than 17,000 patients on the treatment as of March 31, 2025. Rezdiffra generated $137 million in net sales during Q1, reflecting a 33% sequential increase compared to the previous quarter, highlighting its rapid adoption in the MASH treatment landscape.
Despite the strong revenue performance, the company’s operating expenses also rose, totaling $216.6 million in Q1 2025 compared to $152.0 million in the prior-year period. This increase reflects ongoing commercialization efforts and the expansion of Rezdiffra’s reach within the market. As of March 31, 2025, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) maintained a strong liquidity position, with cash, cash equivalents, and marketable securities amounting to $848.1 million.
Madrigal’s continued focus on addressing a high unmet need within liver disease, coupled with Rezdiffra’s impressive commercial uptake, positions the company well for long-term growth. The increase in patient numbers and sustained revenue trajectory underline the drug’s market potential, reinforcing Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)’s strategic position within the biopharmaceutical sector.
2. Twist Bioscience Corporation (NASDAQ:TWST)
Number of Hedge Fund Holders as of Q4: 26
Tao Capital’s Equity Stake: $38.52 Million
Upside Potential as of May 8: 50.11%
Twist Bioscience Corporation (NASDAQ:TWST) is a biotechnology company specializing in synthetic DNA manufacturing using a proprietary semiconductor-based process. Headquartered in South San Francisco, Twist leverages its high-throughput silicon platform to miniaturize DNA synthesis, offering time and cost savings to its diverse customer base spanning pharmaceuticals, agriculture, and data storage.
For the second quarter of fiscal 2025, Twist Bioscience Corporation (NASDAQ:TWST) reported revenue of $92.79 million, surpassing analysts’ expectations of $92.00 million. Despite this revenue beat, the company posted a loss of $0.66 per share, missing the consensus estimate of a $0.56 loss. The negative net margin of 59.76% and return on equity of 32.69% reflect ongoing challenges in scaling the business amid high operational costs. Analysts currently forecast a full-year EPS of -2.12.
Twist Bioscience Corporation (NASDAQ:TWST)’s market capitalization stands at $2.39 billion, with institutional ownership reaching 112.29%, indicating strong confidence from large investors despite recent financial difficulties. The company’s semiconductor-based DNA synthesis technology continues to offer unique advantages, which may support long-term growth as the demand for synthetic biology solutions increases.
With a price target of $47.75 and an upside potential of 45.67%, Twist Bioscience Corporation (NASDAQ:TWST) is among billionaire Nicholas J. Pritzker’s stock picks with huge upside potential. The company’s innovative approach to DNA synthesis and substantial institutional backing position it as a promising player in the biotech space, despite near-term profitability challenges.
1. Ouster, Inc. (NASDAQ:OUST)
Number of Hedge Fund Holders as of Q4: 15
Tao Capital’s Equity Stake: $13.75 Million
Upside Potential as of May 8: 65.70%
Ouster, Inc. (NASDAQ:OUST) is a cutting-edge American lidar technology company based in San Francisco, California. The company designs and manufactures high-resolution, digital 3D lidar sensors that are utilized across a diverse range of applications, including autonomous vehicles, industrial automation, robotics, drones, mapping, defense, and security systems. Ouster’s innovative approach to lidar technology focuses on delivering cost-effective, high-performance sensors that meet the demands of rapidly evolving markets.
In the fourth quarter of 2024, Ouster, Inc. (NASDAQ:OUST) reported robust financial results, driven by increased demand for its lidar solutions. Revenue for the quarter reached $30 million, representing a year-over-year increase of 23% and a sequential rise of 7%. The company shipped more than 4,800 sensors during this period, reflecting consistent growth and successful market penetration. A key highlight of the quarter was the substantial improvement in gross margin, which stood at 44% on both a GAAP and non-GAAP basis, compared to 22% in Q4 2023 and 38% in the previous quarter. The higher margins underscore the company’s progress in cost optimization and efficiency gains.
Despite these positive developments, Ouster, Inc. (NASDAQ:OUST) posted a net loss of $24 million for the quarter. However, this figure marks a significant improvement compared to the $39 million loss reported in Q4 2023 and the $26 million loss from Q3 2024. The company’s full-year financial performance also demonstrated substantial progress, with revenue climbing 33% year-over-year to $111 million and shipments exceeding 17,300 sensors. The GAAP gross margin for the entire year was 36%, a remarkable jump from 10% in fiscal year 2023, while the non-GAAP gross margin improved from 30% to 41%. Ouster’s net loss for the year decreased substantially from $374 million in 2023 to $97 million in 2024, indicating a stronger financial position.
Looking ahead, Ouster, Inc. (NASDAQ:OUST) anticipates revenue for Q1 2025 to fall within the range of $30 million to $32 million, signaling steady growth momentum. The company ended 2024 with a strong liquidity position, holding $175 million in cash, cash equivalents, restricted cash, and short-term investments.
Overall, OUST ranks first among billionaire Nicholas J. Pritzker’s 8 stock picks with huge upside potential. While we acknowledge the potential of these stock picks, 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 OUST but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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