In this article, we’ll look at the 11 AI Stocks That Will Go to the Moon.
The artificial intelligence trade is alive and well, even as valuation concerns continue to send shockwaves on Wall Street. Five companies committing to spend $700 billion on AI infrastructure is the clearest indicator that the AI boom is only getting started. Famed portfolio manager Cathie Wood, who projects data center capital expenditure will climb to $1.4 trillion, further underscores the tremendous opportunities around AI plays.
At the same time, AI’s rapid evolution is reshaping investor sentiment across other sectors. Real estate, trucking, and logistics are the latest to feel the brunt of the revolutionary technology. They join financial and software-as-a-service stocks that have plunged amid AI fears. Billionaire investor Elon Musk has already warned that office towers could soon be empty as the AI revolution replaces workers.
According to Ed Yardeni, president of Yardeni Research, AI has turned technology into a more competitive sport. Software firms once cherished for their sticky subscriptions are already feeling the pressure as AI threatens to automate workflows.
“Software stocks were particularly affected after Anthropic introduced new tools for its Cowork product,” he said. “While it remains to be seen how impactful these new tools will be, investors have reduced the valuation multiples of software companies.”
Software companies that show AI can act as a growth enabler rather than just a competitive threat are the only ones likely to shrug off the onslaught.
Meanwhile, Dan Ives of Wedbush has downplayed the software Armageddon, insisting it’s been blown out of proportion. The famed investor expects software stalwarts to be at the heart of the AI revolution rather than be cannibalized. Blackstone Chief Executive Officer Steve Schwarzman has also brushed aside talk of a data center bubble.
“This is not bubble-type work,” Schwarzman stated. “This represents a highly conservative approach.”
Against this backdrop of dynamic investment and debate, let’s look at some of the best AI stocks that are likely to benefit from heightened AI spending and deployment.
Our Methodology
To compile our list of the 11 AI Stocks That Will Go to the Moon, we reviewed news articles and Insider Monkey’s database of prominent AI stocks. We settled on companies with significant exposure to AI and that are popular among elite hedge funds in Q3 2025. We trimmed the list by selecting AI stocks with an upside potential of more than 50% as of February 20, 2026. Finally, we ranked the stocks in ascending order of their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
AI Stocks That Will Go to the Moon
11. Marvell Technology, Inc. (NASDAQ:MRVL)
Stock Upside Potential: 50.08%
Number of Hedge Fund Holders: 77
Marvell Technology Inc. (NASDAQ:MRVL) is one of the AI stocks that will go to the moon. On February 2, Marvell Technology Inc. (NASDAQ:MRVL) announced the completion of its acquisition of Celestial AI, a specialist in optical interconnect technology. The deal enhances Marvell’s capabilities in high‑bandwidth, low‑latency connectivity solutions for AI and cloud data centers. However, the acquisition is not expected to contribute to revenue until the second half of fiscal 2028.
On February 3, UBS lowered its price target on Marvell to $115 from $120, while maintaining a Buy rating. UBS noted that the Celestial AI acquisition will have a near‑term dilutive impact on earnings, projecting EPS reductions of about $0.20 in fiscal 2027 and $0.16 in fiscal 2028. Revenue from Celestial AI is expected to begin in Marvell’s fiscal third quarter of 2028, with Amazon as the initial customer, though expense dilution will not be offset until the fourth quarter of that year.
The firm maintained its 2026 revenue forecast at $9.7 billion but raised its 2027 projection to $12.7 billion. EPS estimates were lowered to $3.26 for 2026 and $4.69 for 2027. Overall, UBS sees Marvell’s strong financial position and expanded technology portfolio as supportive of long‑term growth, even as near‑term earnings face pressure from integration costs.
Marvell Technology, Inc. (NASDAQ:MRVL) is a major enabler of artificial intelligence (AI) infrastructure, focusing on high-speed connectivity, data storage, and custom compute silicon for data centers. It provides essential components, such as Ethernet switches, optical DSPs, and active electrical cables, that enable fast, low-latency communication between AI accelerators.
10. Datadog, Inc. (NASDAQ:DDOG)
Stock Upside Potential: 52.53%
Number of Hedge Fund Holders: 72
Datadog, Inc. (NASDAQ:DDOG) is one of the AI stocks that will go to the moon. On February 17, analysts at Stifel reiterated a Buy rating and a $160 price target on Datadog stock (NASDAQ:DDOG). The positive stance is in response to the management team reiterating its commitment to expanding growth opportunities across newer products and sales motions.
Management is also increasingly broadening the company’s go-to-market efforts into un-penetrated areas in pursuit of growth opportunities. There is also increased focus on larger enterprise accounts in a bid to unlock new opportunities. The push is expected to result in an operating margin of more than 25%.
Stifel remains confident in Datadog’s long-term prospects, given significant runway in the core product set and emerging opportunities in newer products. The research firm expects sustained sales and marketing investments to strengthen the company’s push for 20%+ growth.
On February 17, analysts at DA Davidson reiterated a Buy rating and a $225 price target. The firm attended Datadog’s investor day in New York, where the company outlined its platform roadmap, autonomous observability strategy, and AI product plans, including ARR disclosures for Security and AI customers. Datadog reiterated financial targets, and DA Davidson noted the event clarified its positioning in autonomous observability.
Datadog, Inc. (NASDAQ:DDOG) is a cloud-based Software-as-a-Service (SaaS) platform that provides unified monitoring, observability, and security for modern IT infrastructure and applications. It enables DevOps teams, developers, and security engineers to monitor, troubleshoot, and optimize their technology stack in real time.
