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.
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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.
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