Every December, the investment world waits for one thing with bated breath: the fresh list of stocks that Wall Street’s biggest names believe can deliver monster returns.
This year, Goldman Sachs didn’t disappoint. They rolled out five names – scattered across China, Taiwan, Germany, India, and the UK – each carrying an implied upside of 70% or more over the next twelve months. That’s the kind of forecast that makes even seasoned investors sit up straight.
I’ve been following analyst conviction lists for years, and I can tell you that when Goldman puts a 90%+ upside on a stock, people notice. So let’s unpack these five ideas, look at why the bank is so confident, and – just as importantly – examine the risks that could derail the story.
Goldman’s Five Conviction Picks With Explosive Upside
Here’s the lineup at a glance before we dive deeper:
- Chinese autonomous-driving chip leader – 94% upside
- Taiwanese tech manufacturing giant – 77% upside
- European online fashion powerhouse – 90% upside
- Indian online travel platform – 72% upside
- British cross-border payments disruptor – 70% upside
1. The Chinese AI Chip Designer Everyone Is Sleeping On
Picture this: a company that builds the “brain” for tomorrow’s self-driving cars, already shipping millions of units, and yet the stock is still trading as if the autonomous revolution might never happen.
That’s essentially the opportunity Goldman sees in Horizon Robotics. Analysts believe the company’s new high-end smart-driving chips and software suite (think Horizon SuperDrive) are perfectly timed to capture the premium segment of the market just as Chinese automakers push aggressively into Level 3 and Level 4 autonomy.
They’re forecasting operating profit growth that would make most Silicon Valley chip designers blush, leading to a 12-month target of HK$15.30 – a clean 94% above recent levels. The stock has already doubled from its IPO price this year, yet Goldman argues the re-rating has only just begun.
“Product mix upgrade toward high-end solutions should drive meaningful margin expansion while volume ramps simultaneously.”
Of course, nothing this exciting comes without risk. Intensifying competition, potential pricing pressure from automakers squeezing suppliers, and – let’s be honest – geopolitical headlines could all create volatility. But if the mass production roadmap for the Journey 6P chip stays on track, 2026 could be a breakout year.
2. The Taiwanese Giant Quietly Powering the AI Server Boom
Most retail investors know Hon Hai by its trade name – Foxconn – the company that assembles your iPhone. What fewer realize is how fast its AI server business is growing.
Goldman believes the market is dramatically underestimating the earnings power of Hon Hai’s cloud and AI infrastructure segment. Combine that with a recovering smartphone cycle and continued EV platform wins, and analysts see a path to the stock trading at 21x forward earnings – roughly in line with global peers.
That math spits out a target of NT$400, implying 77% upside. In a world obsessed with Nvidia, it feels almost refreshing to find an under-the-radar way to play the same megatrend at a fraction of the valuation.
The bears will point to margin pressure in consumer electronics and the slow ramp of some EV programs. Fair points. But when a company of this scale starts firing on multiple cylinders at once, the earnings surprises can be substantial.
3. The European E-Commerce Winner Ready to Rebound
Zalando sometimes feels like the forgotten child of European tech. While Delivery Hero and Just Eat grab headlines, this online fashion platform has quietly built one of the continent’s stickiest consumer franchises.
Goldman actually increased their upside forecast from 77% last month to 90% this month after management closed the acquisition of rival About You. The deal isn’t just about adding revenue – it’s about creating a true pan-European powerhouse with better logistics, stronger brands, and higher margins.
Analysts expect Zalando to grow earnings at 20% annually for the next five years. At the current valuation, that feels almost too cheap to believe. Consumer caution in Europe? Sure, it’s real. But Zalando has proven it can gain share even in tough environments.
“The market continues to believe the market under-appreciates Zalando’s ability to drive both topline and margin expansion.”
The stock is down 26% year-to-date. Sometimes the best opportunities hide in plain sight.
4. India’s Online Travel Platform Poised for Takeoff
Travel demand in India is exploding. A growing middle class, cheaper flights, and a younger population that actually wants to explore – everything is aligning.
MakeMyTrip sits right in the sweet spot. The company dominates online flight and hotel bookings while rapidly expanding into vacation packages and corporate travel. Goldman sees multiple catalysts: normalizing take rates, operating leverage kicking in, and potential M&A that could unlock even more value.
Their $123 target implies 72% upside. Yes, the stock has been weak this year – down more than a third – but sometimes that’s exactly when the setup becomes most compelling. Earnings scheduled for January will be closely watched.
Risks? Intense competition and the possibility of softer travel demand if the economy slows. Still, the long-term India consumption story remains one of the most powerful on the planet.
5. The UK Fintech Champion Built for the Long Game
Last but definitely not least, we have Wise – the company that made sending money across borders feel as easy as sending a text.
The stock took a hit recently after management guided for higher investment spending and some one-off costs related to a planned U.S. dual listing. Markets hate surprises. But Goldman views this as classic short-term pain, long-term gain.
Cross-border payments is a massive market with terrible incumbents. Wise has best-in-class technology, transparent pricing, and a network effect that gets stronger with every new corridor added. Analysts see 70% upside as the company continues taking share.
In my experience, fintech stocks that dip on “reinvestment” narratives often deliver the strongest returns over a multi-year horizon. Patience required, but the payoff can be significant.
Putting It All Together – Should You Care?
Five stocks. Five different countries. Five completely different industries. Yet they share one thing: Goldman Sachs analysts believe each is dramatically undervalued relative to its growth trajectory.
That doesn’t mean all five will work – markets are humbling like that. But when a firm with Goldman’s resources and track record puts conviction targets this aggressive, I pay attention.
Perhaps the most interesting aspect? Four of the five names are actually down or flat year-to-date. In a market that keeps hitting all-time highs, finding high-conviction ideas trading at discounts feels rare.
Do your own homework, of course. Size positions appropriately. But if even two or three of these stories play out the way Goldman expects, 2026 could be a very good year for patient investors.
Happy hunting.
