In this piece, we discuss the 10 Best AI Infrastructure Stocks to Buy According to Hedge Funds.

AI infrastructure is now approaching a trillion-dollar scale rather than being measured in billions, with spending growing massively.

On June 1, 2026, SoftBank CEO Masayoshi Son told CNBC that the AI revolution is roughly 50 times bigger than the dot-com boom, calling it “the biggest revolution of technology and realization that mankind ever experienced.”

A day earlier, SoftBank had announced plans to invest 75 billion euros, or approximately $87 billion, to build AI infrastructure in France, including 5 gigawatts of AI data center capacity, marking the company’s largest AI infrastructure investment in Europe. Three sites in the northern Hauts-de-France region, including one in Dunkirk, are expected to come online by 2031, with SoftBank partnering with French engineering firm Schneider Electric and state-owned nuclear energy giant EDF on the buildout.

However, SoftBank is not the only one committing at that scale.

Also on June 1, 2026, Alphabet announced plans to raise $80 billion in equity capital, including a $10 billion investment from Berkshire Hathaway, specifically to fund what it described as world-class AI compute infrastructure to meet unprecedented customer demand. Alphabet had already revised its 2026 capital expenditure forecast to between $180 billion and $190 billion in April.

Alphabet, Microsoft, Meta, and Amazon are collectively expected to pour more than $700 billion into capital expenditure this year, with Wall Street analysts estimating total AI capex could climb above $1 trillion in 2027.

Against that backdrop, our list of the best AI infrastructure stocks features companies positioned to build, power, and profit from the AI economy.

Our Methodology

To curate our list for this article, we scanned financial media and stock screeners to identify AI infrastructure stocks, including companies that provide the compute, networking, memory, semiconductor equipment, cloud platforms, and power needed to build and run AI systems.

Next, we assessed hedge fund sentiment toward these stocks using Insider Monkey’s hedge fund database, which tracks the holdings of more than 1,000 hedge funds as of Q1 2026. Our final list, which includes stocks with price target upside, is ranked in ascending order by the number of bullish hedge fund positions.

Note: All data sourced on June 1, 2026.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 123

Showing strong hedge fund and Wall Street support, Lam Research Corporation (NASDAQ:LRCX) ranks among the best AI infrastructure stocks and carries an upside potential of 21.0% (street high). Wafer fab equipment demand is getting a significant rerating from Wall Street, and Lam Research is one of the clearest beneficiaries. Thus, analyst sentiment on Lam Research Corporation (NASDAQ:LRCX) remains strong as of June 1, 2026, with a street-high price target of $385 and 29 of 36 analysts maintaining bullish ratings.

The most recent upgrade came on May 27, 2026, when Mizuho raised its price target on Lam Research Corporation (NASDAQ:LRCX) to $380 from $330 and kept an “Outperform” rating.

The firm lifted its wafer fab equipment spending estimate for 2026 to $153 billion from $142 billion, and for 2027 to $190 billion from $163 billion. Mizuho argued that current earnings estimates for Lam Research, Applied Materials, and MKS remain underestimated, with the wafer fab equipment space continuing to benefit from NAND node transitions, TSMC spending, and DRAM and high bandwidth memory pricing strength.

That followed a May 18, 2026, upgrade from Morgan Stanley, which moved Lam Research Corporation (NASDAQ:LRCX) to “Overweight” from “Equal Weight” with a price target of $331, up from $293. The firm said its DRAM wafer fab equipment revisions have narrowed and that it has grown more constructive on NAND revisions from here, citing confidence in Lam’s 2027 share gains.

Earlier, on May 12, 2026, B. Riley raised its price target to $385 from $350, maintaining a “Buy” rating. The firm cited faster-than-expected AI investment, with rising hyperscaler and neo-cloud demand driving sharply higher 2026 to 2028 capex estimates, and tightening supply-demand fundamentals supporting strong semiconductor earnings revisions.

Lam Research Corporation (NASDAQ:LRCX) supplies semiconductor manufacturing equipment and services globally.

9. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 134

With strong hedge fund and Wall Street support, Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks among the best AI infrastructure stocks and carries an upside potential of 21.1%.

Advanced Micro Devices, Inc. (NASDAQ:AMD) remains closely tied to the expanding AI infrastructure buildout, with analysts becoming more constructive on that theme on June 1, 2026.

Barclays analyst Tom O’Malley raised the firm’s price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $665 from $500 and maintained an “Overweight” rating. The firm said CPU-to-GPU ratios are narrowing as CPU demand reaches new levels in the rapidly expanding world of agentic AI. O’Malley argued that AMD is among the best-positioned companies to benefit from that shift.

The same day, Mizuho raised its price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $615 from $515 while maintaining an “Outperform” rating. The firm increased semiconductor-sector targets on expectations that agentic AI demand remains strong across the CPU ecosystem. Mizuho said suppliers continue to face supply constraints into 2027, creating potential upside for server-related demand, though memory and CPU availability could limit growth in the second half of 2026.

The analyst optimism follows Advanced Micro Devices, Inc. (NASDAQ:AMD)’s efforts to broaden its AI infrastructure footprint beyond hyperscale deployments.

On May 8, 2026, Dell Technologies and Advanced Micro Devices, Inc. (NASDAQ:AMD) expanded their on-premises AI platform with support for AMD Instinct MI350P PCIe GPUs in Dell PowerEdge servers. AMD said the MI350P cards are designed to help enterprises run more models, serve more users, and reduce memory, power, and cooling requirements within existing data centers.

The update reflects Advanced Micro Devices, Inc. (NASDAQ:AMD)’s push to address enterprise AI deployments alongside large-scale cloud environments. The company’s AI portfolio spans Instinct GPUs, EPYC server CPUs, and an open ecosystem strategy aimed at customers deploying AI across cloud, on-premises, and hybrid environments.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.