10 Best AI Infrastructure Stocks to Buy According to Hedge Funds

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 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 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 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 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. 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. 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. 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.’s efforts to broaden its AI infrastructure footprint beyond hyperscale deployments.

On May 8, 2026, Dell Technologies and Advanced Micro Devices, Inc. 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.’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. 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.

8. Lumentum Holdings Inc. (NASDAQ:LITE)

Number of Hedge Fund Holders: 123

On the back of strong confidence from hedge funds and Wall Street, Lumentum Holdings Inc. (NASDAQ:LITE) is one of the best AI infrastructure stocks, with upside potential of 28.7%.

On June 1, 2026, Lumentum Holdings Inc. announced agreements with noteholders to exchange approximately $650.4 million of its 0.50% convertible senior notes due 2028 for roughly 5 million shares of its common stock. Lumentum will receive no cash from the transaction, but the exchanged debt will be canceled. After the deal closes around Thursday, approximately $172.2 million of the convertible notes will remain outstanding. The company added that the exchange will result in modest additional share dilution of about 0.8 million shares tied to the principal amount.

That announcement came as the stock already carried strong momentum.

On May 5, 2026, Lumentum Holdings Inc. guided fourth-quarter revenue between $960 million and $1.01 billion, ahead of the analyst consensus of $908.3 million, and projected adjusted profit of $2.85 to $3.05 per share against estimates of $2.68. The guidance followed a strong fiscal third quarter, where revenue rose 90.1% to $808.4 million, beating estimates of $804.3 million, and adjusted earnings per share came in at $2.37 versus the $2.29 consensus.

In response, analysts struck a constructive tone.

On May 7, 2026, Barclays raised its price target to $1,000 from $750, keeping an “Equal Weight” rating, citing a clearer line of sight to $25 in earnings per share in 2027. That same day, Morgan Stanley lifted its target to $900 from $710, also at “Equal Weight,” noting that fiscal Q3 results and Q4 guidance were largely in line but may prompt near-term digestion given the stock’s run. Lumentum Holdings Inc. is up nearly 140% so far in 2026, with 20 out of 25 covering analysts holding bullish views.

Lumentum Holdings Inc. provides optical and photonic products. It operates through two segments: Cloud and Networking, which deals with optical and photonic components, modules, and subsystems, and Industrial Tech, which includes solid-state lasers, kilowatt-class fiber lasers, ultrafast lasers, diode lasers, and gas lasers.

7. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 154

On the back of strong confidence from hedge funds and Wall Street, Micron Technology, Inc. (NASDAQ:MU) is one of the best AI infrastructure stocks, with upside potential of upto 80.2% (street-high).

Micron Technology, Inc. continues to draw increasingly bullish analyst views ahead of its earnings report later this month, as demand across the memory market remains exceptionally strong.

On June 1, 2026, Raymond James raised its price target on Micron Technology, Inc. to $1,100 from $530 and maintained an “Outperform” rating.

The firm said Micron Technology, Inc.’s share price and valuation multiple have continued reaching new highs, yet investor sentiment remains supportive. According to Raymond James, industry capacity additions have been more disciplined than in past cycles, while demand conditions are unlike anything the memory industry has previously experienced. Recent channel checks in South Korea and Taiwan indicated supply remains sold out for multiple years, pricing remains strong, and customers are providing longer-term visibility into demand.

That view followed another bullish analyst update on May 29, 2026.

Susquehanna analyst Mehdi Hosseini raised the firm’s price target on Micron Technology, Inc. to $1,750 from $600 while maintaining a “Positive” rating.

The firm said its checks suggest second-quarter DRAM average selling prices are trending up 50% to 60% quarter-over-quarter, above expectations for a 50% increase. NAND average selling prices were reported to be tracking unchanged versus prior expectations of a 75% to 100% quarter-over-quarter increase. Susquehanna said it increased estimates for memory manufacturers under coverage, citing continued strength in blended average selling prices and growing confidence in the sustainability of margins.

The favorable analyst backdrop has coincided with a sharp rally in the stock. Micron Technology, Inc. shares are up more than 260% in 2026, while 44 of the 47 analysts covering the company currently hold bullish ratings.

Micron Technology, Inc. provides memory and storage solutions sold into client, cloud server, enterprise, graphics, networking, smartphone, mobile-device, automotive, industrial, and consumer markets, among others.

6. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 173

With strong hedge fund and Wall Street support, Broadcom Inc. (NASDAQ:AVGO) ranks among the best AI infrastructure stocks and has 8.6% upside potential.

Broadcom Inc. heads into its quarterly report with analysts expecting the company’s AI-driven growth to remain firmly intact.

On June 1, 2026, Morgan Stanley analyst Joseph Moore raised the firm’s price target on the stock to $485 from $470 and maintained an “Overweight” rating ahead of results scheduled after the market close on June 3, 2026. The firm expects Broadcom Inc. to meet elevated investor expectations, supported by a strong ramp in both networking and application-specific integrated circuits (ASICs). Moore also said Broadcom is likely to retain a strong majority of the Tensor Processing Unit (TPU) business.

That view follows a strong fiscal first-quarter report released on March 4, 2026.

Broadcom Inc. reported record revenue of $19.3 billion, up 29% year-over-year, while AI semiconductor revenue climbed 106% to $8.4 billion, driven by demand for custom AI accelerators and AI networking. Adjusted EBITDA reached a record $13.1 billion, representing 68% of revenue.

Management guided for fiscal second-quarter revenue of approximately $22.0 billion, implying 47% year-over-year growth, with adjusted EBITDA expected to remain around 68% of revenue. Semiconductor revenue is projected to reach $14.8 billion, including AI semiconductor revenue of roughly $10.7 billion, up about 140% from a year earlier. Infrastructure software revenue is expected to reach approximately $7.2 billion.

Broadcom Inc.’s management also said it has secured key component capacity through 2028 and stated it has a line of sight to AI chip revenue exceeding $100 billion in 2027, reflecting the scale of demand from hyperscale customers and custom AI silicon programs.

Broadcom Inc. is a technology company that specializes in semiconductor devices (through the Semiconductor Solutions segment) and infrastructure software solutions (through the Infrastructure Software segment).

5. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 201

On the back of strong confidence from hedge funds and Wall Street, Alphabet Inc. (NASDAQ:GOOGL) is one of the best AI infrastructure stocks, with upside potential of 11.7%.

Alphabet Inc. is entering private equity partnerships as AI deployment moves from hyperscale data centers into the broader enterprise.

On May 28, 2026, Alphabet Inc.’s Google Cloud announced a partnership with Swedish private equity firm EQT to help more than 300 companies across EQT’s portfolio accelerate AI adoption. Under the agreement, EQT’s portfolio companies, spanning sectors from enterprise software to healthcare, will gain access to AI tools, including the Gemini Enterprise Agent platform, as well as cybersecurity services. They will also receive early access to selected Google Cloud AI products going forward.

Alphabet Inc.’s Google engineers will work alongside EQT’s AI transformation team of roughly 35 people, and EQT’s portfolio companies will gain access to Google Cloud’s partner network of more than 330,000 specialists from firms including Accenture, Deloitte, and KPMG. The deal also gives EQT’s software companies the ability to sell their own products through Google Cloud’s online marketplace.

The arrangement follows similar deals Alphabet Inc. struck in April with software-focused investors Vista Equity Partners and Thoma Bravo.

From a broader perspective, the agreements reflect a push by cloud providers to embed their AI platforms deep into enterprise software ecosystems through private equity channels, expanding their customer base well beyond direct enterprise sales.

Alphabet Inc. is a holding company that operates Google services such as search engines, ad platforms, Internet browsers, devices, mapping software, app stores, video streaming, and more. The company also offers cloud infrastructure and platform services, collaboration tools, and other services for enterprise customers, as well as healthcare-related services and internet services.

4. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 262

With strong hedge fund and Wall Street support, Meta Platforms, Inc. (NASDAQ:META) ranks among the best AI infrastructure stocks and carries an upside potential of 30.4%.

Meta Platforms, Inc.’s AI ambitions are expanding well beyond its core advertising business, and Wall Street is starting to price in the potential value of those opportunities.

On June 1, 2026, RBC Capital reiterated an “Outperform” rating and $810 price target on the stock, arguing that Meta Platforms, Inc. sits at the intersection of two trends that could accelerate total addressable market expansion: differentiated compute capacity enabling identification of unexpressed demand, and an explosion in AI-enabled entrepreneurialism.

RBC framed its thesis around what it calls “Born on Meta,” referring to the creation of businesses, products, and services driven by Meta Platforms, Inc.’s combination of behavioral data and AI compute.

The firm noted that the digital ads market is approaching $1 trillion and likely compounding at high single-digit to roughly 10% growth over the next few years. Meta Platforms, Inc.’s current roughly 5% advertiser penetration of businesses already on its apps likely generates 80% to 90% of its $55 billion to $60 billion annualized dollar growth.

RBC said that deepening that penetration, alongside product and service expansion as compute ramps up, could contribute tens of billions per year incrementally.

Meanwhile, Meta Platforms, Inc. is accelerating its hardware ambitions.

On May 29, 2026, Reuters reported that Meta plans to begin testing an AI pendant within the next year, and to significantly expand its AI glasses lineup and launch a business-focused “Wearables for Work” service. Meta aims to sell 10 million wearable devices in the second half of 2026. The push comes despite Reality Labs posting a $4.03 billion loss on $402 million in revenue in the first quarter.

Meta Platforms, Inc. develops products that allow people to share and connect with their family and friends using PCs, mobile devices, virtual reality (VR) headsets, and AI glasses. Some of its well-known apps include Facebook, Instagram, and WhatsApp. It operates in the Reality Labs (RL) and Family of Apps (FoA) segments.

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 275

On the back of strong confidence from hedge funds and Wall Street, NVIDIA Corporation (NASDAQ:NVDA) is one of the best AI infrastructure stocks, with upside potential of 34.0%.

NVIDIA Corporation is not just selling chips into the AI buildout. It now provides infrastructure builders with an end-to-end stack to construct, simulate, and operate entire AI factories.

On June 1, 2026, NVIDIA Corporation announced the NVIDIA DSX platform, a co-designed system that brings together open-source software libraries, application programming interfaces, reference designs, accelerated computing platforms, and partner technologies into a unified framework for AI factory design, deployment, and operations.

The latest additions to NVIDIA Corporation’s platform include two new open source software layers.

DSX MaxLPS is a suite of technologies designed to maximize token performance per megawatt within a fixed power budget, combining 45-degree Celsius liquid cooling with in-rack optimization tools that allow operators to run up to 40% more GPUs at their most energy-efficient point with minimal workload impact. DSX OS is a modular software layer purpose-built for AI factory operations, covering lifecycle management, intelligent scheduling, health automation, resiliency, and multi-tenant operations.

Those additions join existing DSX components, including DSX Sim, a high-fidelity simulation layer that lets operators model and validate infrastructure decisions before deployment; DSX Flex, which connects AI factories to power grid services for dynamic workload adaptation; and DSX Exchange, which integrates compute, energy, and cooling signals across IT and operational systems.

The platform is already seeing broad adoption.

Cloud partners, including CoreWeave, Lambda, and Nebius, are deploying DSX components, while Dell Technologies, HPE, Lenovo, and Supermicro are building DSX-ready systems. Jensen Huang said DSX lets builders simulate an entire factory before spending a dollar.

NVIDIA Corporation is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units. Through its CUDA ecosystem, the company enables industries ranging from autonomous vehicles to scientific research by advancing AI, accelerated computing, and data center infrastructure.

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 282

With strong hedge fund and Wall Street support, Microsoft Corporation (NASDAQ:MSFT) ranks among the best AI infrastructure stocks and carries an upside potential of 24.4%.

Previously, Microsoft Corporation built its early AI lead through its partnership with OpenAI. However, now, it is racing to prove it can operate independently.

On May 28, 2026, Reuters reported that Microsoft Corporation plans to unveil a suite of homegrown AI models at its annual Build developer conference in San Francisco, including a coding model aimed at boosting usage of its GitHub Copilot tool. Microsoft is also planning to roll out new models specializing in transcription, reasoning, speech, and images, according to the report. Microsoft shares climbed nearly 3% on the news.

The announcement reflects a broader strategic pivot.

Microsoft Corporation has historically relied on models from OpenAI, Anthropic, and Google to power GitHub Copilot, but products such as Anthropic’s Claude Code have quickly risen to the top of AI-assisted coding, pressuring the tool’s competitive position. The two companies have also restructured their partnership terms in recent months to reduce reliance on each other, pushing Microsoft to accelerate its own model development.

To close the gap, Microsoft Corporation is also eyeing AI startup acquisitions, Reuters reported earlier in May, with potential deals aimed at building AI talent and delivering on a stated goal of developing a cutting-edge model by next year.

Analyst sentiment on Microsoft Corporation remains strong despite the strategic uncertainty. As of June 1, 2026, 57 of 61 covering analysts rate the stock bullish, with a median price target of $557.90.

Microsoft Corporation is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 353

On the back of strong confidence from hedge funds and Wall Street, Amazon.com, Inc. (AMZN) is one of the best AI infrastructure stocks, with upside potential of 16.4%.

Amazon.com, Inc. (NASDAQ:AMZN)’s cloud business has already served as the backbone of the AI buildout. Yet a ten-year, $100 billion commitment from Anthropic indicates that growth is only set to accelerate from here.

On May 29, 2026, Truist raised its price target on Amazon.com, Inc. to $320 from $310, keeping a “Buy” rating. The firm lifted its AWS revenue estimates for fiscal 2027 and beyond to better reflect the potential flow-through from the company’s recently announced $100 billion partnerships with both Anthropic and OpenAI and the corresponding recognition in revenues from backlog. The analyst contended that consensus is underestimating both fiscal 2027 capex and revenue growth.

The Anthropic partnership is a major driver of that outlook.

Anthropic is committed to spending more than $100 billion over the next ten years on AWS technologies, encompassing current and future generations of Amazon.com, Inc.’s Trainium custom silicon and tens of millions of Graviton CPU cores. Anthropic will secure up to 5 gigawatts of capacity to train and power its AI models, including significant Trainium3 capacity expected to come online this year. The collaboration also includes expanded international inference in Asia and Europe to serve Claude’s growing customer base.

Amazon.com, Inc. will also invest $5 billion in Anthropic, with up to an additional $20 billion tied to certain commercial milestones, on top of the $8 billion previously invested. According to management, more than 100,000 customers currently run Anthropic’s Claude models on AWS, making Claude one of the most widely used model families on Amazon Bedrock.

Amazon.com, Inc. operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.

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