In this article, we will look at the 10 Best AI Pick-and-Shovel Stocks to Buy.
AI pick-and-shovel stocks are the companies selling the hardware, power, and physical capacity needed to make AI work, rather than the companies competing to build the winning model. BlackRock says it favors the “physical infrastructure and equipment supporting the AI buildout” because those businesses can “benefit no matter the winners or losers.” The strategy is not to predict which AI platform dominates. It is owning the suppliers that may still get paid as long as AI spending keeps rising.
In view of this, datacenter stocks, cooling and thermal management names, nuclear energy stocks, and even uranium stocks can all be viewed as AI pick-and-shovel plays. J.P. Morgan says data centers and power are “core AI infrastructure,” and specifically points to companies tied to “construction, cooling, electrical equipment, and power generation.” Fidelity makes a similar case, saying the AI “picks and shovels” include “graphics processing units, high-speed memory, and data centers,” while also highlighting “power generation to help support the artificial intelligence buildout.” J.P. Morgan adds that the power mismatch has “reignited interest in nuclear energy.” By extension, uranium sits one step further as part of the fuel supply that could help keep AI infrastructure running.
Against that backdrop, we will look at the 10 Best AI Pick-and-Shovel Stocks to Buy.
Our Methodology
We used the Finviz screener to identify data center, cooling and thermal management, nuclear energy, and uranium stocks. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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. PG&E Corporation (NYSE:PCG)
On April 2, 2026, PG&E Corporation received approval from the federal Nuclear Regulatory Commission for a 20-year license renewal for the Diablo Canyon Power Plant. The NRC said the facility is safe and environmentally sound to operate for another 20 years, though extending operations beyond 2030 would require action from the California Legislature, following a three-year review process that also involved multiple state and regional agencies.
On March 22, 2026, Jefferies analyst Julien Dumoulin-Smith downgraded PG&E Corporation to Hold from Buy with a $19 price target, down from $20, citing reduced confidence in wildfire liability reform in California. Julien Dumoulin-Smith said stakeholder discussions indicate utilities and insurers are not aligned, and political support for structural changes remains uncertain.
Meanwhile, JPMorgan raised its price target on PG&E Corporation to $24 from $21 previously and maintained an Overweight rating on the shares after updating its models for the North America utilities group.
PG&E Corporation provides electricity and natural gas services in California.
9. BWX Technologies, Inc. (NYSE:BWXT)
On April 6, 2026, BWX Technologies, Inc. (NYSE:BWXT) said it has notified the U.S. Nuclear Regulatory Commission of its plan to apply for a uranium enrichment license for a new facility adjacent to its Nuclear Fuel Services site in Erwin, Tennessee. The notification allows the NRC to prepare for review of the application, which BWX expects to submit in the first quarter of 2027.
On March 25, 2026, BofA raised its price target on BWX Technologies, Inc. to $250 from $230 previously and maintained a Buy rating on the shares, reflecting a shift to 2027 valuation. BofA said the company is “well-exposed” to naval, defense, and commercial nuclear markets with ongoing tailwinds.
Earlier in March, TD Securities analyst Marc Bianchi initiated coverage on BWX Technologies, Inc. with a Buy rating and a $230 price target. Marc Bianchi highlighted the company’s “strong nuclear heritage” and technology-agnostic services, noting multiple growth opportunities that could translate into significant value.
BWX Technologies, Inc. manufactures nuclear components and services globally.
8. Centrus Energy Corp. (NYSE:LEU)
On April 7, 2026, UBS analyst Jon Windham said Centrus Energy Corp. (NYSE:LEU) could face increasing competition in U.S. enrichment services after BWX Technologies disclosed plans to pursue a uranium enrichment license for a new facility. Jon Windham said BWX aims to produce highly enriched uranium for the Department of Energy’s National Nuclear Security Administration and expects to submit its application in Q1 2027, adding the development could represent a “competitive headwind” for Centrus Energy Corp. over time as capacity builds out toward the late 2030s.
Last month, Centrus Energy Corp. announced a partnership with Palantir to integrate AI-driven software into its uranium enrichment expansion. CEO Amir Vexler said the collaboration is expected to support operational efficiency, highlighting identified savings of nearly $300 million and positioning the company to scale its enrichment technology while reducing lead times and unit costs.
Earlier, Oklo and Centrus Energy Corp. said they are exploring a joint venture focused on deconversion services for high-assay low-enriched uranium at Centrus’ Piketon site in Ohio, with plans to coordinate regulatory, R&D, and supply chain initiatives alongside broader efforts to strengthen U.S. nuclear fuel-cycle infrastructure.
Centrus Energy Corp. supplies nuclear fuel components and enrichment services globally.
7. NANO Nuclear Energy Inc. (NASDAQ:NNE)
On April 8, 2026, NANO Nuclear Energy Inc. (NASDAQ:NNE) announced it has been awarded a Gateway for Accelerated Innovations in Nuclear Voucher by the U.S. Department of Energy for its Kronos MMR Energy System. The project, conducted with Oak Ridge National Laboratory, will use the SCALE/TSUNAMI code suite to evaluate how nuclear data, modeling assumptions, and operational parameters affect reactor performance metrics such as reactivity, power distribution, and temperature coefficients.
On April 1, 2026, NANO Nuclear said a construction permit application for its Kronos MMR microreactor was submitted to the U.S. Nuclear Regulatory Commission by its partner, the University of Illinois Urbana-Champaign. The company said the submission positions it as the first commercially-ready microreactor developer and the third commercially-ready Generation IV advanced reactor developer to file such an application.
Last month, NANO Nuclear reported progress in developing a transportation solution for high-assay low-enriched uranium fuel using a proprietary basket design licensed with support from GNS Gesellschaft fur Nuklear-Service mbH. The initiative is being advanced through its subsidiary, Advanced Fuel Transportation, Inc., as part of efforts to build integrated capabilities across the nuclear fuel cycle, including transportation and microreactor development.
NANO Nuclear Energy Inc. develops nuclear energy technologies and systems.
6. Equinix, Inc. (NASDAQ:EQIX)
On April 8, 2026, Cantor Fitzgerald initiated coverage of Equinix, Inc. (NASDAQ:EQIX) with an Overweight rating and a $1,173 price target. Cantor Fitzgerald said AI infrastructure is “an attractive place to invest,” citing broad adoption across industries and expecting a sustained supply and demand imbalance over the next five-plus years to support pricing.
On March 30, 2026, Truist assumed coverage of Equinix, Inc. with a Buy rating and raised its price target to $1,127 from $1,087. Truist said data centers are its preferred sub-sector within communications infrastructure and technology, describing them as “the effective real estate partner for AI, Cloud and digital transformation investment,” and highlighted Equinix alongside Digital Realty as preferred names.
Earlier in March, Equinix, Inc. appointed Olivier Leonetti as Chief Finance Officer, effective March 16. Olivier Leonetti previously served as CFO of Eaton and Johnson Controls, and held finance leadership roles at Zebra Technologies, Western Digital, Dell, and Amgen, succeeding Keith Taylor.
Equinix, Inc. operates digital infrastructure and data centers globally.
5. Lightbridge Corporation (NASDAQ:LTBR)
On March 31, 2026, Lightbridge Corporation (NASDAQ:LTBR) announced it received a notice of allowance from the U.S. Patent and Trademark Office for a patent application covering its “Fuel Assembly” technology. The application includes 16 claims related to fuel assemblies and reactors using its spirally twisted, multi-lobed fuel element design for pressurized heavy-water reactors, including CANDU-type systems, describing elements with fissile material embedded in a metal matrix and specific moderator-to-fuel ratios.
On March 24, 2026, Lightbridge said it was selected to join the Industry Advisory Board for a $6M nuclear materials research project funded by the U.S. Department of Energy’s Nuclear Energy University Program and led by Pennsylvania State University. The project focuses on materials research for next-generation reactors, with participation from companies including X-Energy, Westinghouse Electric Company, and Kairos Power.
On March 17, 2026, Lightbridge announced an engineering contract with Stern Laboratories to evaluate the thermal and hydraulic performance of its fuel for light water reactors. The work, to be conducted in phases at Stern’s facility in Ontario, includes fuel simulator design, acceptance testing, and multi-phase critical heat flux investigations, with Phase 1 expected to take about one year.
Lightbridge Corporation develops nuclear fuel technologies for commercial reactors.
4. Oklo Inc. (NYSE:OKLO)
On March 29, 2026, Oklo Inc. (NYSE:OKLO) and Blykalla AB announced an expansion of their transatlantic partnership to advance fast reactor commercialization. CEO Jacob DeWitte said the collaboration aims to “bring more power plants online more quickly,” with planned workstreams including support for Oklo’s U.S. Department of Energy-authorized reactor pilot project and potential fast-neutron irradiation testing using Oklo’s powerhouses.
On March 25, 2026, UBS lowered the price target on Oklo Inc. to $60 from $95 previously and maintained a Neutral rating on the shares. UBS said it remains cautiously optimistic on U.S. nuclear development but cited concerns around capital requirements, potential delays, and cost overruns.
Meanwhile, B. Riley lowered its price target on Oklo to $92 from $129 and maintained a Buy rating, noting progress across power, fuel, and isotope businesses, including DOE approvals for its Aurora plant, a prepayment agreement with Meta for up to 1.2 GW in Ohio, initial fuel facility construction, and milestones tied to isotope operations. The firm also noted Oklo ended the quarter with $1.4B in cash, raised $1.2B post-quarter, and guided 2026 operating and investing cash use.
Oklo Inc. develops advanced fission power plants for energy generation.
3. Vertiv Holdings Co (NYSE:VRT)
On April 1, 2026, Barclays analyst Julian Mitchell raised the price target on Vertiv Holdings Co (NYSE:VRT) to $300 from $281 and maintained an Overweight rating as part of a broader Q1 preview. Julian Mitchell said the sector is facing “more demand question marks,” though expectations have been “somewhat re-based.”
On March 30, 2026, Vertiv Holdings Co announced an approximately $50M investment to expand its manufacturing operations in Ironton, Ohio, and its headquarters campus in Westerville, Ohio. The expansion is expected to create hundreds of jobs through 2029 and increase production capacity for liquid cooling and chilled water systems by about 45%, with operations at the Ironton site expected to begin in the second quarter of 2027.
On March 24, 2026, HSBC initiated coverage on Vertiv Holdings Co with a Buy rating and a $325 price target. HSBC said the company is an “important enabler” of AI growth through its power and thermal management solutions, and expects strong long-term demand for data center infrastructure, projecting significant earnings growth through 2028.
Vertiv Holdings Co provides infrastructure technologies and services for data centers and digital networks.
2. Modine Manufacturing Company (NYSE:MOD)
On March 29, 2026, GLJ Research analyst Austin Wang initiated coverage of Modine Manufacturing Company (NYSE:MOD) with a Buy rating and a “Street-high” $290 price target on the shares. Austin Wang has said that the private competitor checks and hyperscaler margin trends point to upside in both long-term guidance and margins, adding that the market is underestimating Modine Manufacturing Company’s North American data center chiller capacity ramp.
Meanwhile, DA Davidson has maintained a Buy rating and a $265 price target on Modine Manufacturing Company after meeting with management, saying it came away “quite bullish on a number of fronts.” The firm has noted that the company’s datacenter funnel has expanded significantly since its September 2024 analyst day, supporting its growth outlook through FY28, and pointed to additional upside from hyperscaler demand, international data center expansion, and non-data center opportunities.
Modine Manufacturing Company provides thermal management and cooling solutions, including data center cooling systems and related services.
1. Digital Realty Trust, Inc. (NYSE:DLR)
On April 8, 2026, Cantor Fitzgerald initiated coverage of Digital Realty Trust, Inc. (NYSE:DLR) with an Overweight rating and a $211 price target. Cantor Fitzgerald said AI infrastructure is “an attractive place to invest,” noting demand tied to AI adoption across industries and expecting a sustained supply and demand imbalance over the next five-plus years to support pricing.
On March 30, 2026, Truist assumed coverage of Digital Realty Trust, Inc. with a Buy rating and raised its price target to $207 from $202. Truist said data centers are its preferred sub-sector within communications infrastructure and technology, describing them as “the effective real estate partner for AI, Cloud and digital transformation investment,” and highlighted Digital Realty and Equinix as preferred names.
On March 23, 2026, Digital Realty Trust, Inc. announced plans to enter the Milan market with the acquisition of two land parcels in Abbiategrasso, located southwest of the city center. The planned campus will sit along a subsea traffic corridor connecting Milan to Genoa and Savona and provide access to regional fiber routes.
Digital Realty Trust, Inc. develops and operates data centers globally.
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