In this article, we will list the Billionaire Steve Cohen’s 5 Large-Cap Stock Picks with Highest Upside Potential. Please visit Billionaire Steve Cohen’s 10 Large-Cap Stock Picks with Highest Upside Potential if you would like to see the extended list and the methodology behind it.
5. Home Depot Inc. (NYSE:HD)
Stock Upside Potential: 34.61%
Market Capitalization: $320.70 Billion
Point 72 Asset Management Equity Stakes: $320.70 Million
Number of Hedge Fund Holders: 98
Home Depot Inc. (NYSE:HD) is one of billionaire Steve Cohen’s large-cap stock picks with the highest upside potential. On May 8, Barclays touted Home Depot Inc. (NYSE:HD) as one of the companies benefiting from an uptick in demand and easing comparisons in the sector.
Consequently, the investment bank expects the company to deliver solid first-quarter results, supported by reasonable consensus estimates and an attractive valuation. The better-than-expected results would come on the back of favorable interest rates, which are fueling customer activity in the sector. Demand has already stabilized and improved, creating a favorable setup, as supplier-tracking data also suggest solid trends in the first quarter compared to the fourth quarter.
On the other hand, Home Depot subsidiary SRS Distribution has completed the acquisition of Mingledorff’s, LLC. With the acquisition, it gains access to a wholesale distributor of heating, ventilation, and air conditioning equipment, parts, and supplies. It will also add HVAC distribution as a new vertical.
“The addition of Mingledorff’s represents another key milestone in our strategy to better serve the Pro with the most comprehensive product and service offerings,” said Ted Decker, chair, president, and CEO of The Home Depot.
Home Depot Inc. (NYSE:HD) is the world’s largest home improvement specialty retailer, operating over 2,300 warehouse-format stores. It deals in building materials, home improvement products, tools, appliances, and lawn/garden items to DIY homeowners and professional contractors (Pros).
4. Danaher Corporation (NYSE:DHR)
Stock Upside Potential: 40.47%
Market Capitalization: $123.89 Billion
Point 72 Asset Management Equity Stakes: $387.51 Million
Number of Hedge Fund Holders: 125
Danaher Corporation (NYSE:DHR) is one of billionaire Steve Cohen’s large-cap stock picks with the highest upside potential. On May 11, Masimo Corporation reported first‑quarter earnings, likely one of its last standalone results before being acquired by Danaher Corporation (NYSE:DHR) in a $9.9 billion cash deal at $180 per share. Analysts expected $1.43 EPS on $398.65 million revenue, marking a turnaround from the prior quarter’s loss. While revenue dipped slightly due to seasonality, profitability was seen as a key signal of operational stability during the merger review period.
For investors, the focus is squarely on Danaher. The acquisition, approved by Masimo shareholders on May 1, is set to close in the second half of 2026 pending regulatory clearance. Danaher values Masimo’s technologies highly, seeing strong strategic benefits in merging its pulse oximetry and patient monitoring solutions with Danaher’s diagnostics portfolio.
A clean quarter strengthens confidence that Masimo will integrate smoothly into Danaher’s Diagnostics segment, while any operational missteps could raise concerns about execution risk. Ultimately, the deal highlights Danaher’s push to expand its healthcare technology footprint with high‑margin, innovative monitoring solutions.
On April 21, Danaher Corp delivered solid first-quarter 2026 results and issued guidance that signals continued growth momentum in the year.
Revenue in the quarter was up 3.5% year over year to $6 billion, as net earnings came in at $1 billion, or $1.45 per diluted share. Adjusted earnings per diluted share grew 9.5% to $2.06. The better-than-expected results came as the team executed well at the back of a steady recovery in Bioprocessing and better-than-expected performance in Life Sciences.
For the second quarter, Danaher Corp. management expects non-GAAP core revenue growth in the low single digits, with full-year growth between 3% and 6%. The company has also increased its adjusted diluted earnings per common share guidance to $8.35 to $8.55, up from its previous guidance of $8.35 to $8.50.
The company is also looking to acquire Masimo Corporation to further strengthen its prospects in mission-critical pulse oximetry and patient monitoring solutions in acute care settings.
Danaher Corporation (NYSE:DHR) is a global science and technology innovator that designs, manufactures, and markets products in life sciences, diagnostics, and environmental & applied solutions. They serve industries such as biotechnology, healthcare, and water quality with tools including analytical instruments, consumables, reagents, and diagnostic software.
3. Spotify Technology S.A. (NYSE:SPOT)
Stock Upside Potential: 35.75%
Market Capitalization: $90.45 Billion
Point 72 Asset Management Equity Stakes: $563.84 Million
Number of Hedge Fund Holders: 121
Spotify Technology S.A. (NYSE:SPOT) is one of billionaire Steve Cohen’s large-cap stock picks with the highest upside potential. On April 29, Benchmark reiterated a Buy rating on Spotify Technology S.A. (NYSE:SPOT) but lowered the price target to $695 from $760.
The price target cut comes amid concerns about the company’s cost structure. According to BTIG analyst Mark Zgutowicz, Spotify Technology management provided a cost bridge without a clear revenue projection.
In addition, the research firm is wary of the company’s advertising monetization lagging behind engagement growth. According to BTIG, Spotify has yet to provide an explanation for why ad monetization trails engagement beyond problematic pricing.
The lack of a clear commercial strategy for AI-generated music, including the rights and royalty structure, is another headwind that continues to weigh on BTIG’s sentiment toward the stock. The research firm is also concerned about the qualitative payback period for current AI and research spending.
Spotify Technology S.A. (NYSE:SPOT) operates the world’s most popular audio streaming subscription service, providing access to over 100 million tracks, 7 million podcasts, and 500,000 audiobooks. Using a freemium model, it offers ad-supported free listening or paid subscriptions for high-quality, offline access, utilizing AI-driven personalization (like the AI DJ) to connect users with audio content.
2. Sea Limited (NYSE:SE)
Stock Upside Potential: 52.63%
Market Capitalization: $59.34 Billion
Point 72 Asset Management Equity Stakes: $625.49 Million
Number of Hedge Fund Holders: 113
Sea Limited (NYSE:SE) is one of billionaire Steve Cohen’s large-cap stock picks with the highest upside potential. On May 12, Sea Limited (NYSE:SE) delivered solid first-quarter 2026 results characterized by robust revenue and gross profit growth.
Revenue in the quarter was up 46.6% to $7.1 billion, as Shopee delivered another record-setting quarter, with gross orders increasing 29.3% to 4 billion. Gross profit increased 40.7% to $3.1 billion, while net income rose 6.7% year over year to $438.2 million. Adjusted EBITDA increased 9.3% to $1 billion.
During the quarter, the company’s e-commerce platform, Shopee, achieved new highs in gross merchandise volume, gross order volume, and revenue while maintaining financial discipline. Revenue in the segment was up 45.1% to $5.1 billion.
Similarly, Sea Ltd.’s digital payments and financial services provider, Monee, continues to grow healthily while maintaining stable asset quality. The unit is expanding into additional user segments and early markets, such as Brazil, which is driving a 57.8% increase in revenue to $1.2 billion.
Sea Limited (NYSE:SE) is a Singapore-based technology company focused on consumer internet services, primarily operating in Southeast Asia, Latin America, and other markets.
1. NVIDIA Corporation (NASDAQ:NVDA)
Stock Upside Potential: 26.05%
Market Capitalization: $5.37 Trillion
Point 72 Asset Management Equity Stakes: $1.86 Billion
Number of Hedge Fund Holders: 264
NVIDIA Corporation (NASDAQ:NVDA) is one of billionaire Steve Cohen’s large-cap stock picks with the highest upside potential. On May 11, analysts at UBS reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) and a $245 price target.
The research firm remains bullish about Nvidia’s long-term outlook after the Taiwan Ministry of Finance announced April export data showing Automatic Data Processing equipment reached $23.5 billion, down 28.5% month over month. While a significant drop, it reflects normalization following the March exceptional 127.7% increase due to post-Lunar New Year catch-up activity.
On the other hand, the $23.5 billion absolute figure remains elevated, affirming healthy underlying artificial intelligence-driven demand.
Earlier, Reuters reported that NVIDIA and South Korean tech giant LG Electronics are joining forces to cooperate on robotics, AI data centers, and mobility. The collaboration follows a visit by Nvidia’s senior director for Physical AI, Madison Huang, to LG Electronics. The pact underscores growing collaboration opportunities between hardware manufacturers, including LG, and AI chipmakers. It also underscores the push for growth opportunities in future-facing technologies.
NVIDIA Corporation (NASDAQ:NVDA) is a technology company that pioneered GPU-accelerated computing, specializing in the design of graphics processing units (GPUs), application programming interfaces (APIs), and systems-on-a-chip (SoCs). It dominates the AI hardware market, powering data centers, gaming, professional visualization, and automotive AI, and provides the software stack (e.g., CUDA) for high-performance computing and AI training.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
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