Leading Financial Analysts Identify Small-Cap Stocks with Significant Upside Potential

Forget Nvidia: These 3 Small-Cap Stocks Offer Up to 557% Upside

High-water price targets from a trio of Wall Street pundits imply three diminutive companies can skyrocket 223% to 557%. Since the page turned to 2023 a little over 16 months ago, the bulls have been running wild on Wall Street. Professional and everyday investors have flocked to high-growth, innovation-driven businesses, and have been particularly enamored with Wall Street's next-big-thing investment trend: artificial intelligence (AI).

Nvidia's upside may be limited as headwinds build

A quick review of Nvidia's headline growth figures demonstrates why investors can't seem to get enough of this stock. In fiscal 2024, Nvidia reported total sales growth of 126%, with Data Center revenue climbing by a scorching-hot 217%. Nvidia's A100 and H100 graphics processing units (GPUs) have become staples in AI-accelerated data centers, and are the go-to for businesses aiming to train large language models and run generative AI solutions on their cloud-based platforms. But even with things going swimmingly for Nvidia, the high-water price target among Wall Street analysts is $1,400 from Hans Mosesmann at Rosenblatt. This implies Nvidia's peak upside over the next year is 58%, based on where the company's shares ended on May 3.

Plug Power: Implied upside of 557%

The first small-cap stock with truly jaw-dropping upside that could handily outpace Nvidia in the return column, at least based on the lofty price target of one Wall Street analyst, is hydrogen fuel-cell solutions company Plug Power (NASDAQ: PLUG). According to analyst Amit Dayal of H.C. Wainwright, Plug Power stock can reach $18 per share. If accurate, this would represent upside of 557% compared to the $2.74 Plug shares closed at last week. Dayal believes the company's double-digit long-term growth projections, efforts to control its expenses, and incremental margin improvements, merit this aggressive price target.

Petco Health and Wellness: Implied upside of 223%

A second small-cap stock with scorching-hot upside that could potentially run circles around Nvidia, based on the forecast of one Wall Street pundit, is pet-focused retail chain Petco Health and Wellness (NASDAQ: WOOF). In a March note, analyst Anna Andreeva of Needham maintained her firms' buy rating on Petco and stood firm on her previously issued $5 price target. If Petco were to rally to this mark, shareholders as of May 3 would enjoy 223% upside!

Novavax: Implied upside of 285%

The third small-cap stock with sensational upside potential, based on the prognostication of one Wall Street analyst, is biotech company Novavax (NASDAQ: NVAX). Despite the Novavax stock chart looking like something straight out of a horror film, analyst Vernon Bernardino of H.C. Wainwright believes shares will hit $19. Given that Novavax ended the previous week at $4.93, Bernardino's aggressive price target implies a near-quadrupling over the next year.