The 18-year-old forward, who signed his first professional contract for his boyhood club in July, has enjoyed a fine month, netting five goals in three Premier League 2 matches.
The Blyth-born youngster opened his goalscoring account in the young Magpies' opening league fixture of the season, a 1-1 draw against their Reading counterparts, before scoring consecutive braces against Birmingham City and Burnley respectively.
His impressive displays last month have earned him a place on the eight-man shortlist - chosen by the Football Premier League Development Panel after club coaches nominated the best performance by an opponent in each of their league matches - for the award.
The panel will also decide the winner.
Nominated alongside Stephenson - who will be aiming to score a sixth goal in five competitive matches as United's second-string begin their Premier League Cup campaign away at Watford on Monday evening - are Aston Villa's Aaron Ramsey, Omari Giraud-Hutchinson of Arsenal, Brighton & Hove Albion's Evan Ferguson, Harvey Vale of Chelsea, Manchester City's James McAtee, Jonathan Tomkinson of Norwich City and Tottenham Hotspur's Dilan Markanday.