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 (NYSE:PCG) 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 (NYSE:PCG) 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 (NYSE:PCG) 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 (NYSE:PCG) 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. (NYSE:BWXT) 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. (NYSE:BWXT) 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. (NYSE:BWXT) manufactures nuclear components and services globally.
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