In this article, we will examine Billionaire Steve Cohen’s 10 Small-Cap Stock Picks with Huge Upside Potential.
Known for speed, agility, and a high-risk, high-reward investment approach, Steve Cohen is one of the most successful hedge fund managers on Wall Street. The billionaire investor, founder of the now-defunct SAC Capital Advisors, is the brains behind Point72 Asset Management, one of the most tracked investment advisors.
The hedge fund is heavily invested in the equity markets, spreading risk across industries from technology to healthcare, consumer cyclical, financial services, and real estate, among others. Last year, the investment firm returned 19%, affirming Cohen’s impressive stock-picking skills.
Early in the year, Cohen warned of a significant market correction owing to the threat posed by tariffs, DOGE, and immigration uncertainties.
“I think this is one of those moments where there’s really a lot of uncertainty, and I have pretty strong views here. Tariffs cannot be positive; I mean it’s a tax. And you can imagine tit for tat if the US does something—it implements a tax on somebody—somebody else is going to raise the stakes perhaps and raise their tax back. Taxes are never positive,” Cohen is quoted as saying.
Cohen has also raised concerns that the market is ‘headline driven’ amid the US tariff war and uncertainty. While his economists believe there is a 45% chance of a recession, Cohen insists it is not that high even though there is a prospect of slow growth over the next year.
“Even in 2026 we expect growth in one and a half percent range. And so in a world where multiples are high am so much concerned on the short term basis. It does not mean we have to go down a lot. We can be in a trading range and when I look at it I think the offset is what is happening in AI. You can always start hearing about the margins benefit that companies can accrue from implementing these tools, the savings and the effects on the bottom line are pretty significant.”
While significant gains in large-cap stocks have fueled the rally, small-cap stocks have lagged the overall market. Likewise, Cohen’s portfolio boasts small-cap stocks well positioned to benefit from the easing of monetary policy. The US Federal Reserve’s rate cuts and signals of further cuts are already making the case for small-cap stocks.
With that in mind, let’s take a look at some of billionaire Steve Cohen’s small-cap stock picks with huge upside potential.
Steven Cohen of Point72 Asset Management
Our Methodology
To come up with our list of Billionaire Steve Cohen’s small-cap stock picks with huge upside potential, we scanned the Point72 Asset Management portfolio. We focused on small-cap stocks with a market cap of between $300 million and $2 billion, which are popular among elite hedge funds. We also trimmed our list to focus on stocks with upside potential of more than 20% as of October 23. We have also detailed the stock’s performance from the end of the second quarter (June 30, 2025) to October 23, 2025, to provide insights into whether Cohen was right or wrong for betting on the stock. Finally, we ranked the stocks in ascending order based on the value of Point72 Asset Management’s equity stakes in them.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Billionaire Steve Cohen’s Small-Cap Stock Picks with Huge Upside Potential
10. Amplitude, Inc. (NASDAQ:AMPL)
Point72 Asset Management Equity Stake: $14.82 Million
Stock Upside Potential: 49.46%
Market Cap: $1.32 Billion
Stock Performance (end Q2-October 23): -20.40%
Number of Hedge Fund Holders: 28
Amplitude, Inc. (NASDAQ:AMPL) is one of billionaire Steve Cohen’s small-cap stock picks with tremendous upside potential. On October 21, Amplitude Inc. (NASDAQ:AMPL) announced the public release of its Model Context Protocol (MCP) server, enabling companies to access behavioral data directly within AI environments like Claude and Cursor.
This integration allows users to query live customer metrics—such as retention and sign-up trends, using natural language, streamlining insights without switching platforms. Amplitude also expanded its AI Agents beta program to all customers, introducing Dashboard Agent and Session Replay Agent. These tools automatically analyze dashboards, detect trends, and identify user behavior patterns. Early adopter Zip praised MCP’s ability to unlock cross-domain insights, while Amplitude plans further enhancements and deeper integration in the coming months.
Amplitude, Inc. (NASDAQ:AMPL) offers a digital analytics platform designed to help businesses gain insights into user behavior across their digital products. Its tools enable companies to track engagement, uncover usage trends, and optimize product design and functionality.
9. Taysha Gene Therapies Inc. (NASDAQ:TSHA)
Point72 Asset Management Equity Stake: $16.90 Million
Stock Upside Potential: 92.43%
Market Cap: $1.35 Billion
Stock Performance (end Q2-October 23): 119.90%
Number of Hedge Fund Holders: 34
Taysha Gene Therapies Inc. (NASDAQ:TSHA) is one of billionaire Steve Cohen’s small-cap stock picks with huge upside potential. On October 20, Raymond James initiated coverage on Taysha Gene Therapies (NASDAQ:TSHA) with a Strong Buy rating and a $13 price target, aligning with the broader analyst consensus.
The firm cited promising Phase 1/2 REVEAL trial results for Rett syndrome and positive FDA feedback as key drivers. With a $1.28 billion market cap and a cash-rich balance sheet, Taysha is well-positioned to advance its clinical programs.
Recent milestones include Breakthrough Therapy Designation, FDA protocol alignment, and approval for a 6-month interim analysis that could fast-track regulatory submission. Patient enrollment for REVEAL Part B is underway, with final dosing expected by mid-2026 and potential commercialization in 2027. Taysha’s focus on a genetically defined Rett syndrome population offers a clear therapeutic opportunity.
Taysha Gene Therapies Inc. (NASDAQ:TSHA) is a clinical-stage biotech firm dedicated to advancing adeno-associated virus (AAV)-based gene therapies for rare, single-gene disorders affecting the central nervous system. Its mission centers on delivering targeted treatments that address the root genetic causes of these conditions.
8. Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)
Point72 Asset Management Equity Stake: $17.27 Million
Stock Upside Potential: 25.48%
Market Cap: $821.49 Million
Stock Performance (end Q2-October 23): -41.06%
Number of Hedge Fund Holders: 22
Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) is one of billionaire Steve Cohen’s small-cap stock picks with huge upside potential. On October 17, Wells Fargo initiated coverage of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) with an Equal Weight rating and a $42 price target.
The firm noted that the company’s fundamentals have weakened, citing consumer resistance to recent strategic changes. This hesitation has raised concerns about Cracker Barrel’s ability to regain momentum and effectively reposition its brand.
Wells Fargo expressed uncertainty about the company’s near-term performance, particularly its efforts to stabilize customer traffic and refresh its image. Until there is clear evidence of operational improvement, the firm expects Cracker Barrel’s stock to remain range-bound.
Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) operates a chain of combined restaurant and retail locations across the United States. Each store features a full-service restaurant offering breakfast, lunch, and dinner, along with an on-site gift shop. The company provides dine-in, takeout, and delivery options to serve a wide range of customer preferences.
7. AngioDynamics, Inc. (NASDAQ:ANGO)
Point72 Asset Management Equity Stake: $19.33 Million
Stock Upside Potential: 49.15%
Market Cap: $500.17 Million
Stock Performance (end Q2-October 23): 22.37%
Number of Hedge Fund Holders: 25
AngioDynamics, Inc. (NASDAQ:ANGO) is one of billionaire Steve Cohen’s small-cap stock picks with huge upside potential. On October 6, H.C. Wainwright reiterated its Buy rating on AngioDynamics (NASDAQ:ANGO) with a price target of $16, following robust fiscal Q1 2026 results.
The company posted $75.7 million in net sales, up 12.2% year-over-year, driven by a 26.1% surge in Med Tech revenue. Key products like AlphaVac and AngioVac saw sales jump over 50% and 37%, respectively, contributing to a 91% stock return over the past year.
Despite a net loss of $10.9 million, AngioDynamics reported positive adjusted EBITDA of $2.2 million. U.S. and international sales rose 11.7% and 15.6%, respectively. The company also raised its full-year guidance, projecting net sales of $308–313 million and adjusted EBITDA of $6.0–10.0 million, while maintaining its gross margin outlook.
AngioDynamics, Inc. (NASDAQ:ANGO) is a global medical technology company that develops, produces, and markets devices used in the treatment of peripheral vascular disease, cancer, and surgical conditions. Its product portfolio supports both diagnostic and therapeutic procedures across the U.S. and international healthcare markets.
6. Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY)
Point72 Asset Management Equity Stake: $19.36 Million
Stock Upside Potential: 44.96%
Market Cap: $647.23 Million
Stock Performance (end Q2-October 23): -43.21%
Number of Hedge Fund Holders: 31
Dave & Buster’s Entertainment Inc. (NASDAQ:PLAY) is one of billionaire Steve Cohen’s small-cap stock picks with tremendous upside potential. On September 30, S&P Global downgraded the stock to a ‘B-’ in response to declining same-store sales, compressed margins, and high capital expenditure.
The same store sales decline comes as the dining chain faces lower demand for its products due to deteriorating macroeconomic conditions. Its core customers who fall below the national median income level are facing greater financial pressure, leading to reduced discretionary spending.
In addition, operational changes over the past two years have also hurt sales and cash flow. For starters, increasing game costs and the complexity of purchasing gaming tokens have also hurt sales. In response, the new management team has started focusing on simplification and returning to basics, which is expected to improve messaging to customers and staff.
Dave & Buster’s is also heightening its focus on lower-priced menu items, such as appetizers, as it seeks to grow restaurant traffic.
Dave & Buster’s Entertainment Inc. (NASDAQ:PLAY) owns and operates venues offering a combination of food, drinks, games, and sports viewing in North America, creating an “eatertainment” experience. The company provides full-service restaurants, sports bars with large screens, and arcades filled with games.
5. ADC Therapeutics S.A. (NYSE:ADCT)
Point72 Asset Management Equity Stake: $20.81 Million
Stock Upside Potential: 98.14%
Market Cap: $457.87 Million
Stock Performance (end Q2-October 23): 53.86%
Number of Hedge Fund Holders: 14
ADC Therapeutics S.A. (NYSE:ADCT) is one of billionaire Steve Cohen’s small-cap stock picks with huge upside potential. On October 16, H.C. Wainwright reaffirmed its Buy rating on ADC Therapeutics (NYSE:ADCT) but lowered the price target from $8 to $7.
The revision follows the company’s announcement of a $60 million PIPE financing deal, which includes the sale of 11.3 million common shares at $4.00 each and pre-funded warrants for 3.8 million shares at $3.90 apiece. Net proceeds are expected to total approximately $57.6 million after fees and expenses.
The financing strengthens ADC Therapeutics’ balance sheet, boosting its pro forma cash position to an estimated $292.3 million. The company also anticipates reporting $15.8 million in net product revenue from ZYNLONTA sales for Q3 2025, with $234.7 million in cash and equivalents as of September 30.
ADC Therapeutics S.A. (NYSE:ADCT) is a Switzerland-based biotech firm specializing in the development of Antibody Drug Conjugates (ADCs) designed for cancer therapy. The company leverages its proprietary pyrrolobenzodiazepine (PBD) technology to link powerful chemotherapy agents to antibodies that precisely target malignant cells, aiming to enhance treatment efficacy while minimizing damage to healthy tissue.
4. ACV Auctions Inc. (NASDAQ:ACVA)
Point72 Asset Management Equity Stake: $28.91 Million
Stock Upside Potential: 82.90%
Market Cap: $1.61 Billion
Stock Performance (end Q2-October 23): 43.03%
Number of Hedge Fund Holders: 36
ACV Auctions Inc. (NASDAQ:ACVA) is one of billionaire Steve Cohen’s small-cap stock picks with huge upside potential. On October 7, Needham cut its price target on ACV Auctions Inc. (NASDAQ:ACVA) from $16 to $14 while reaffirming a Buy rating. The revision comes despite a surge in hiring activity, which Needham views as a bullish signal for future topline growth amid improving used auto supply and industry momentum.
The firm adjusted its estimates by flattening unit growth assumptions to exclude macro recovery benefits, citing ongoing volatility in used auto unit trends. While this volatility impacts short-term results and guidance, Needham sees limited effect on long-term projections.
ACV Auctions Inc. (NASDAQ:ACVA) operates a digital wholesale marketplace that enables dealerships to buy and sell used vehicles directly with one another. The platform streamlines business-to-business transactions, connecting sellers and buyers across the automotive industry.
3. Amylyx Pharmaceuticals Inc. (NASDAQ:AMLX)
Point72 Asset Management Equity Stake: $29.08 Million
Stock Upside Potential: 24.83%
Market Cap: $1.58 Billion
Stock Performance (end Q2-October 23): 124.84%
Number of Hedge Fund Holders: 28
Amylyx Pharmaceuticals Inc. (NASDAQ:AMLX) is one of billionaire Steve Cohen’s small-cap stock picks with huge upside potential. On October 3, Bank of America Securities raised the stock’s price target to $16 from $14 while maintaining a ‘Buy’ rating.
The price target hike comes on the heels of Amylyx Pharmaceuticals Inc. (NASDAQ:AMLX) raising $175 million on the issuance of 17.5 million shares. Net proceeds from the offering totaled $163 million, extending the company’s cash runway to beyond 2027.
The strengthened balance sheet provides the company with the much-needed runway to invest in commercial ramp-up activities. Amylyx is working on pivotal Phase 3 LUCIDITY trial results for avexitide in post-bariatric hypoglycemia. The results are expected in the first half of 2026. It’s also on course to deliver cohort data from the AMX0114 program in ALS by year’s end.
Amylyx Pharmaceuticals Inc. (NASDAQ:AMLX) is a biopharmaceutical company that focuses on discovering and developing novel treatments for neurodegenerative diseases and other serious conditions with high unmet medical needs, including amyotrophic lateral sclerosis (ALS).
2. Nurix Therapeutics, Inc. (NASDAQ:NRIX)
Point72 Asset Management Equity Stake: $42.18 Million
Stock Upside Potential: 189.32%
Market Cap: $817.27 Million
Stock Performance (end Q2-October 23): -7.64%
Number of Hedge Fund Holders: 34
Nurix Therapeutics, Inc. (NASDAQ:NRIX) is one of billionaire Steve Cohen’s small-cap stock picks with huge upside potential. On October 14, H.C. Wainwright lowered its price target on Nurix Therapeutics (NASDAQ:NRIX) from $34.00 to $33.00, while reaffirming its Buy rating after the company’s Q3 2025 earnings. Nurix reported a net loss of $1.03 per share, wider than the expected $0.68, and generated $7.9 million in revenue—well below the projected $30 million.
Operating expenses were higher than anticipated, with R&D costs at $86.1 million. Despite the miss, Nurix ended the quarter with $428.8 million in cash, which H.C. Wainwright believes it will fund operations into early 2027. The revised price target reflects expectations of continued cost pressure, but the firm remains optimistic about the company’s long-term prospects.
Nurix Therapeutics, Inc. (NASDAQ:NRIX) is a biopharmaceutical company that discovers and develops targeted protein degradation (TPD) medicines to treat cancer and immune disorders by modulating the levels of specific proteins within cells.
1. Arcus Biosciences Inc. (NYSE:RCUS)
Point72 Asset Management Equity Stake: $48.56 Million
Stock Upside Potential: 97.33%
Market Cap: $1.79 Billion
Stock Performance (end Q2-October 23): 104.23%
Number of Hedge Fund Holders: 33
Arcus Biosciences Inc. (NYSE:RCUS) is one of billionaire Steve Cohen’s 10 small-cap stock picks with huge upside potential. On October 6, Arcus Biosciences Inc. (NYSE:RCUS) announced encouraging data for its kidney cancer drug casdatifan.
The HIF-2a inhibitor demonstrated positive results across all efficacy measures in the Phase 1/1b study. In trials involving 121 patients across four immunotherapy cohorts, the candidate drug achieved a median progression-free survival of 12.2 months.
Casdatifan showed an acceptable safety profile with anemia and hypoxia. During the trials, only 9% of the patients discontinued the treatment due to adverse events.
“Even when we analyzed pooled data for the 121 patients treated with casdatifan monotherapy, casdatifan showed a confirmed ORR of 31% and a median PFS of 12.2 months, which is meaningfully longer than published data from studies with the only marketed HIF-2a inhibitor and for TKIs alone in a similar patient population and setting,” said Richard Markus, M.D., Ph.D., chief medical officer at Arcus Biosciences.
Arcus Biosciences Inc. (NYSE:RCUS) is a clinical-stage Biopharmaceutical Company that discovers and develops novel combination therapies for cancer, focusing on both small molecules and antibodies to address unmet medical needs.
While we acknowledge the potential of RCUS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RCUS and that has 100x upside potential, check out our report about this cheapest AI stock.
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