In this article, we will look at the 10 Best Up and Coming AI Stocks to Buy.
On February 26, Seana Smith, Senior Investment Strategist at Global X ETFs, appeared on a CNBC Television interview to discuss the impact of tech earnings on AI fears. She noted the impressive earnings from big tech companies, especially Nvidia, and highlighted the 75% year-over-year revenue growth for the company’s data center segment.
Seana believes Nvidia’s earnings will be enough to calm the fears with regard to the AI trade. She also highlighted that Salesforce’s earnings were good, especially considering the negative sentiment surrounding software. Seana told CNBC that the sector is going through a repricing and ruled out any possibility of a “total collapse” of the software segment.
She highlighted that the software sector has been through many tough spots over the past few years. Seana believes that once the market moves past the current challenges, we will see clear winners and losers in the software space.
With that, let’s take a look at the 10 Best Up and Coming AI Stocks to Buy.
Source: pexels
Our Methodology
We used screeners to identify AI stocks that have gone public in the last 5 years, and 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Up and Coming AI Stocks to Buy
10. Arm Holdings plc (NASDAQ:ARM)
Arm Holdings plc (NASDAQ:ARM) is one of the Best Up and Coming AI Stocks to Buy. On February 23, Arm Holdings plc (NASDAQ:ARM) and Tensor announced their multi-year strategic partnership to power the world’s first agentic AI personal Robocar. It is a level 4 autonomous vehicle designed for personal use and can operate intelligently without a human driver.
Management noted that with the help of ARM’s computing, Tensor is building these robocars. Tensor is using over 400 safety-focused, energy-efficient Arm cores per vehicle, which the management highlighted is the highest number of Arm technology in a single vehicle. The vehicle is expected to be launched commercially in 2026.
The vehicle uses a comprehensive package of sensors, including “37 cameras, 5 lidars, 11 radars, 22 microphones, 10 ultrasonic sensors, 3 IMUs, GNSS, 16 collision detectors, 8 water-level sensors, 4 tire-pressure monitors, a smoke detector, and triple-channel 5G.” Management highlighted that ARM’s processors are spread throughout the car from the main supercomputer to tiny sensors, handling everything safely. The company’s processors being used in the car include specialized cores like Neoverse for heavy AI tasks, Cortex-X for in-cabin smarts and peak control, and others for real-time safety and driving systems.
Arm Holdings (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers.
9. CoreWeave, Inc. (NASDAQ:CRWV)
CoreWeave, Inc. (NASDAQ:CRWV) is one of the Best Up and Coming AI Stocks to Buy. On March 2, Raimo Lenschow from Barclays reiterated a Hold rating on the stock with a price target of $90.
However, on the same day, Kevin Dede from H.C. Wainwright reiterated a Buy rating on CoreWeave, Inc. (NASDAQ:CRWV) with a price target of $180, reflecting more than 130% upside from the current level. Dede’s rating is based on the company’s fiscal Q4 2025 results released on February 27. The analyst highlighted the company’s explosive revenue expansion, surging contracted backlog, and rising remaining performance obligations as evidence of strong demand visibility and sustainability.
During the quarter, CoreWeave delivered $1.6 billion in revenue, reflecting 110% year-over-year growth. This was largely driven by increased demand for hyperscalers, AI natives, and enterprises. Notably, revenue backlog increased by over $50 billion year-over-year to $66.8 billion in fiscal 2025.
Dede highlighted in a research note that the company has the ability to quickly activate large-scale compute resources and expand data centers faster than peers, accelerating revenue generation from investments. The analyst expects higher-margin software and services revenue, fueled by deeper customer adoption and Nvidia’s validation of CoreWeave’s technology stack.
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
8. GlobalFoundries Inc. (NASDAQ:GFS)
GlobalFoundries Inc. (NASDAQ:GFS) is one of the Best Up and Coming AI Stocks to Buy. GlobalFoundries Inc. (NASDAQ:GFS) has gained more than 13% since its fiscal Q4 2025 earnings were released on February 11. The company posted a quarterly revenue of $1.83 billion, which remained flat year-over-year, but topped estimates by $26.62 million. The EPS came in at $0.55 ahead of expectations.
The revenue and profitability metrics for the quarter were above the top end of management’s guidance, driven by the shift towards higher-margin automotive, communications infrastructure, and data center end markets. Full-year revenue was $6.791 billion, up 1% compared to the prior year, while the full-year operating profit was $1.066 billion at a 15.7% operating margin, reflecting an increase of 210 basis points year-over-year. Management expects next quarter’s revenue to be around $1.625 billion plus or minus $25 million, along with roughly 27% gross margins.
That said, GlobalFoundries Inc. (NASDAQ:GFS) and Renesas Electronics, which is a Japanese chipmaker, announced a multi-billion-dollar manufacturing partnership on February 16.
Management noted that the deal expands on the existing partnership and allows Renesas broader access to the company’s specialized chip technologies while boosting supply chain security. As a result of this partnership, Renesas will have access to the company’s portfolio, including FDX, BCD, and advanced CMOS technologies. These technologies will be used to power Renesas’ system-on-chips, microcontrollers, and power devices.
Manufacturing, as per the partnership, is expected to start from GlobalFoundries’ US facilities in mid 2026 and is said to expand to Germany, Singapore, and China. Management noted that this deal positions the company as an international supplier of one of the world’s top automotive MCU makers.
Tim Breen, CEO of GlobalFoundries, noted:
“This partnership strengthens a proven relationship and underscores GF’s role as a trusted partner for essential semiconductor technologies. The automotive landscape is changing fast. Semiconductors are now the foundation of innovation, powering advanced driver assistance, battery management, and secure connectivity.”
GlobalFoundries Inc. (NASDAQ:GFS) is a semiconductor foundry that provides a range of mainstream wafer fabrication services and technologies worldwide.
7. Qnity Electronics, Inc. (NYSE:Q)
Qnity Electronics, Inc. (NYSE:Q) is one of the Best Up and Coming AI Stocks to Buy. On March 1, RBC Capital reiterated a Buy rating on the stock and raised the price target from $133 to $139. Earlier, on February 27, Goldman Sachs also reiterated a Buy rating on Qnity Electronics, Inc. (NYSE:Q) and raised the price target from $110 to $130.
The positive sentiment is based on the company’s fiscal Q4 2025 earnings, released on February 26. This was the company’s first quarterly earnings since its spin-off into an independent company in November. Qnity posted $1.19 billion in revenue for Q4, surpassing estimates by $35.43 million, along with an EPS of $0.82, which also surpassed consensus by $0.18.
For the full-year, the company posted $4.75 billion in revenue, up 10% year-over-year, driven by robust performance from both Semiconductor and Interconnect segments. Gross profit for fiscal 2025 came in at $2.195 billion, up from $1.996 billion a year ago. Looking ahead, management anticipates fiscal 2026 revenue to be in the range of $4.97 billion – $5.17 billion.
RBC Capital said in a research note that they remain positive on Qnity Electronics, Inc. (NYSE:Q) following its earnings beat. The firm highlighted that the company posted strong top-line and EBITDA growth. RBC Capital noted that the EBITDA margins can continue to grow if “customer capacity utilization continues to ramp.”
Qnity Electronics, Inc. (NYSE:Q) supplies specialized materials and solutions for the semiconductor and electronics industries through two segments: Semiconductor Technologies and Interconnect Solutions.
6. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the Best Up and Coming AI Stocks to Buy. On March 3, William Blair reiterated a Buy rating on the stock, without disclosing any price targets. On the same day, Bank of America Securities reiterated a Buy rating on Credo Technology Group Holding Ltd (NASDAQ:CRDO) but lowered the price target from $200 to $160.
The ratings follow Credo’s fiscal Q3 2026 earnings release on March 2. During the quarter, the company grew its revenue by 201.49% year-over-year to $407.01 million, surpassing estimates by $15.42 million. The EPS of $1.07 also topped estimates by $0.13. Management noted the quarter to be a record-breaking one, driven by strong demand from hyperscaler customers.
Management highlighted that all of its top 3 customers contributed more than 10% to the total revenue, with the first contributing 39%, the second 32%, and the third 17% for the quarter. For the next quarter, the company expects revenue between $425 million and $435 million, while non-GAAP gross margin is guided at 64%-66%.
BofA highlighted the quarterly performance to be in line with earlier “stellar pre-announcement.” As a result, the firm raises its FY27 and FY28 pro-forma EPS estimates by 5% and 6%, respectively. The lower price target is based on the industry multiple re-rating, said BofA in a research note.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) develops connectivity solutions and products for the data infrastructure market. Its products include integrated circuits, active electrical cables, and SerDes chiplets.
5. Samsara Inc. (NYSE:IOT)
Samsara Inc. (NYSE:IOT) is one of the Best Up and Coming AI Stocks to Buy. On March 3, Craig-Hallum reiterated a Buy rating on the stock without disclosing any price targets. On the same day, Jason Celino from KeyBanc reiterated a Buy rating on Samsara Inc. (NYSE:IOT) but lowered the price target from $55 to $40.
Celino from KeyBanc said in a research note that the company approaches its fiscal Q4 2026 earnings positively. The analyst anticipates the company to post modest upside in quarterly results and also expects the fiscal 2027 guidance to be in line with expectations. Moreover, the firm upholds its view that Samsara can enhance cross-selling of emerging products while tapping greenfield opportunities, particularly internationally.
Samsara Inc. (NYSE:IOT) expects fiscal Q4 2026 revenue in the range of $421 million – $423 million, along with non-GAAP operating margins at 16%. The company is set to release results on March 5, 2026.
Samsara Inc. (NYSE:IOT) provides solutions to connect physical operations data to its connected operations platform in the US and internationally.
4. Confluent, Inc. (NASDAQ:CFLT)
Confluent, Inc. (NASDAQ:CFLT) is one of the Best Up and Coming AI Stocks to Buy. On February 26, Confluent, Inc. (NASDAQ:CFLT) unveiled new capabilities for the Confluent Intelligence tool to supercharge AI agents with live data analysis.
Management highlighted that the new features connect AI agents and also allow for more accurate data analysis. The tool uses the new Agent2Agent protocol to let AI agents from different tools communicate and act on real-time data streams. This will allow users to link agents to different data sources, such as BigQuery or Databricks, and trigger actions for workflows or alerts.
The company also added Multivariate Anomaly Detection, which builds on Confluent’s ML functions to analyze multiple metrics together, allowing the tool to automatically detect unusual patterns. Management noted they are building forward-looking AI that constantly learn and shares insights in real time. The company quoted IDC predictions that 40% of G2000 jobs will involve AI agents by 2026. This could drive revenue through upsells in their cloud platform, especially as enterprises fight data silos.
Confluent, Inc. (NASDAQ:CFLT) specializes in real-time data streaming platforms built on Apache Kafka, enabling organizations to process and move “data in motion” continuously across applications, systems, and clouds.
3. Rubrik, Inc. (NYSE:RBRK)
Rubrik, Inc. (NYSE:RBRK) is one of the Best Up and Coming AI Stocks to Buy. On March 3, Saket Kalia from Barclays reiterated a Buy rating on the stock but lowered the price target from $100 to $70. Earlier, on February 25, Rudy Kessinger from D.A. Davidson initiated Rubrik, Inc. (NYSE:RBRK) with a Buy rating and a $65 price target.
The ratings come ahead of the company’s fiscal Q4 2026 results, expected to be announced on March 12. The analyst said in a research note that he views Rubrik’s Q4 preannouncement as positive, noting it “de-risks” the quarter by highlighting sales compensation changes expected to boost net new annual recurring revenue.
The company expects Q4 2026 revenue to be in the range of $341 million to $343 million, along with a non-GAAP subscription ARR contribution margin of approximately 9%. The full-year 2026 subscription ARR is expected to be between $1.439 billion and $1.443 billion. Wall Street expects fiscal Q4 revenue to be around $342.37 million.
Rubrik Inc. (NYSE:RBRK) is a cybersecurity company focused on data protection, cyber resilience, and enterprise AI. Rubrik Security Cloud platform helps organizations secure, monitor, and recover data, identities, and workloads across cloud environments. In addition, Rubrik Agent Cloud supports enterprises in deploying trusted AI agents at scale. Rubrik applies machine learning to data security, backup, and recovery, thereby automating protection and reducing human error.
2. Pony AI Inc. (NASDAQ:PONY)
Pony AI Inc. (NASDAQ:PONY) is one of the Best Up and Coming AI Stocks to Buy. On March 1, Pony AI Inc. (NASDAQ:PONY) announced that its Gen-7 Robotaxi operations in Shenzhen have reached unit economics breakeven. This suggests that the company has achieved mass production and commercialization for its autonomous technology.
Management highlighted that as of February 28, each Gen-7 Robotaxi averaged RMB 338 in daily net revenue from 23 orders per day. The gains were attributed to higher user demand driven by Chinese New Year travel and operational efficiencies.
The company noted it to be a significant milestone following the breakeven in Guangzhou last year. CEO James Peng noted that these milestones validate Pony.Ai’s commercialization path in major Chinese cities. Management also noted its plan to expand the fleet for more paid orders and revenue growth, signaling readiness for multi-year scaling.
Pony AI Inc. (NASDAQ:PONY), through its subsidiaries, engages in the autonomous mobility business in the People’s Republic of China, the US, and internationally. The company develops a proprietary Virtual Driver that uses a unified AI software stack.
1. Ralliant Corporation (NYSE:RAL)
Ralliant Corporation (NYSE:RAL) is one of the Best Up and Coming AI Stocks to Buy. On February 24, Reuters reported that Irenic Capital Management has asked management to cut costs, increase the speed of share buy-backs, and focus on further enhancing its defense and electronic business.
According to Reuters, the firm has a 2% stake in Ralliant Corporation (NYSE:RAL) and has met with the management multiple times to help the company perform better. Moreover, the report highlighted that Irenic wants Ralliant to expand its $200 million stock buyback program with a larger authorization and accelerated share repurchases to quickly retire shares. Additionally, the firm also seeks more focus on the sensors and safety systems unit, which comprises almost 80% of earnings.
The report noted that the stock has fallen 20.5% since its spin-off from Fortive less than a year ago. The situation has been further worsened by test/measurement segment volatility, which accounts for 20% of earnings and a 30% plunge after February’s higher-cost guidance. Irenic believes that the test/measurement side could fit better with buyers like Emerson Electric (EMR), which bought National Instruments in 2023.
Ralliant Corporation (NYSE:RAL) designs, develops, manufactures, sells, and services precision instruments and engineered products in the US, China, Western Europe, and internationally. It has two segments: Test & Measurement and Sensors & Safety Systems.
While we acknowledge the potential of RAL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RAL and that has 100x upside potential, check out our report about this cheapest AI stock.
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