In this piece, we discuss the 11 best AI infrastructure stocks to buy right now.
The market is seeing a reshaping in global capital flows, corporate strategies, and investor sentiment amid the emergence of artificial intelligence (AI) as the defining force of the ongoing market cycle. As of October 14, 2025, global AI spending is projected to hit the $375 billion mark in 2025 alone and surpass $500 billion by 2026, according to UBS. This is shaping market sentiment such that investors are feeling optimistic that the technology could drive economic growth despite the faltering of traditional sectors.
Reflecting this enthusiasm, on October 14, Wedbush Securities’ Dan Ives compared today’s AI infrastructure boom to “building Vegas in the 1950s” or “Dubai 30 years ago,” highlighting the technology’s transformative potential.
At the same time, however, the massive investment surge is raising concerns about its sustainability. CNBC’s Jim Cramer warned on November 11 that OpenAI’s reliance on debt to fund its multibillion-dollar infrastructure commitments could ripple across the broader AI ecosystem. Thus, he emphasized the need to diversify into other “growth areas,” urging investors to remain cautious of the end of the era of easy gains. Furthermore, on the same day, stocks of DoorDash, Duolingo, and Roblox recorded declines as the companies announced their plans to increase spending on AI.
With this backdrop in mind, let’s move on to our list of the 11 best AI infrastructure stocks to buy right now.
Photo by NeONBRAND on Unsplash
Our Methodology
To curate our list of the 11 best AI infrastructure stocks to buy right now, we consulted ETFs and financial media reports to compile a list of the top AI infrastructure stocks. Next, we assessed hedge fund ownership in these stocks, using Insider Monkey’s hedge fund database. Finally, our list of the best AI infrastructure stocks is presented in ascending order based on the number of hedge funds holding stakes in each stock.
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).
11. Arm Holdings Plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 41
With significant hedge fund interest, Arm Holdings Plc (NASDAQ:ARM) secures a spot on our list of the 11 best AI infrastructure stocks to buy right now.
On November 12, 2025, The Fly reported that Loop Capital increased its price target on Arm Holdings Plc (NASDAQ:ARM) from $155 to $180, while reiterating a “Buy” rating. The investment firm’s bullish stance stemmed from the company’s quarterly beat reported in its fiscal Q2 results.
Additionally, on November 7, 2025, The Fly reported that Morgan Stanley increased its price target on Arm Holdings Plc (NASDAQ:ARM) from $171 to $180, while maintaining an “Overweight” rating. The firm attributed its raised target to the company’s Q2 earnings and sales, both of which exceeded the upper end of its guidance. Furthermore, the investment firm highlighted the company’s expanding role in the accelerating AI ecosystem, evident from its increased operating expenses.
Meanwhile, on November 5, Arm Holdings Plc (NASDAQ:ARM) reported fiscal Q2 2025 results, noting record revenue of $1.14 billion, a year-over-year increase of 34%. Meanwhile, non-GAAP EPS came in at $0.39, surpassing the midpoint of guidance. The company reported $620 million in royalty revenue with a 21% growth. Thanks to strong demand for next-generation AI chips, licensing grew 56% to $515 million. The quarter also marked heightened R&D spending, growing operating expenses 31% to $648 million, driven by new chiplet and data center projects.
Looking ahead, Arm Holdings Plc (NASDAQ:ARM)’s partnership with Meta, announced during October, is expected to enhance its AI efficiency, while its agreed acquisition of DreamBig Semiconductor is expected to expand its networking IP footprint.
Operating across data center, smartphone, and IoT markets, Arm Holdings Plc (NASDAQ:ARM) designs, develops, and licenses CPU and semiconductor IP to global chipmakers and OEMs.
10. Nebius Group N.V. (NASDAQ:NBIS)
Number of Hedge Fund Holders: 45
With significant hedge fund interest, Nebius Group N.V. (NASDAQ:NBIS) secures a spot on our list of the 11 best AI infrastructure stocks to buy right now.
On November 12, 2025, Nebius Group N.V. (NASDAQ:NBIS) saw Northland Capital reduce its price target on the company from $211 to $206, while reiterating an “Outperform” rating. The firm attributed its bullish stance to impressive reliability metrics, a key to its growth outlook. This is evident from the company’s “sold-out” capacity across the September and December quarters, reflecting strong demand momentum. The investment firm is confident in the company’s guidance of 38-55 MW of incremental active power for the December quarter, alongside a 1.5 GW expansion of contracted power by the end of 2026.
Northland Capital’s revision to its price target followed the company’s announcement of a $3 billion, five-year deal with Meta on November 11. The deal, which will see Nebius Group N.V. (NASDAQ:NBIS) supplying AI infrastructure to Meta, reflects surging hyperscaler demand for high-performance computing power. This builds on the company’s momentum shown in the third quarter, as it reported a 355% revenue surge, allowing the company to project $7-$9 billion in annualized revenue by 2026.
Nebius Group N.V. (NASDAQ:NBIS), which owns Avride and TripleTen, and holds stakes in companies Toloka and Clickhouse, delivers advanced AI infrastructure solutions.
9. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 48
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the 11 best AI infrastructure stocks to buy right now.
On November 7, 2025, Argus Research upgraded Super Micro Computer, Inc. (NASDAQ:SMCI) from “Hold” to “Buy” with a $64 price target. Reflecting on the company’s Q1 2026 results, the investment firm highlighted its long-term AI infrastructure opportunity, supported by its expanding backlog, which already hit the $13 billion mark. Despite the company’s short-term revenue and margin struggles, the firm believes SMCI’s shares are trading at less than half the peak price seen at the start of 2024. Moreover, the firm sees a strong outlook for Super Micro Computer, Inc. (NASDAQ:SMCI), driven by robust demand for its products due to generative AI.
Meanwhile, on November 4, 2025, Super Micro Computer, Inc. (NASDAQ:SMCI) released fiscal Q1 2026 earnings, reporting $5 billion in revenue, down 15% YoY and 13% sequentially. The revenue was driven by AI GPU platforms, which accounted for over 75% of total sales. Its record $13 billion backlog included one of the largest deals in its 32-year history. Looking ahead, the company reaffirmed its full-year revenue outlook of at least $36 billion. Meanwhile, it expects revenue to lie between $10 billion and $11 billion in the second quarter.
Operating across the U.S., Asia, and Europe, Super Micro Computer, Inc. (NASDAQ:SMCI) designs and sells modular server and storage solutions.
8. Coherent, Inc. (NASDAQ:COHR)
Number of Hedge Fund Holders: 66
With significant hedge fund interest, Coherent, Inc. (NASDAQ:COHR) secures a spot on our list of the 11 best AI infrastructure stocks to buy right now.
On November 10, 2025, Craig-Hallum’s Richard Shannon reiterated his “Buy” rating on Coherent, Inc. (NASDAQ:COHR) with a $190 price target.
Previously, on November 7, 2025, William Blair’s Jed Dorsheimer reiterated his “Hold” rating on Coherent, Inc. (NASDAQ:COHR). The analyst cited the company’s strong Q1 2026 results, highlighting its increasing role in the AI technology stack amid improving transceiver supply conditions.
The analyst believes that the company’s new products, including the 400 mW CW laser and next-generation 2D VCSEL array, which enhance its position in AI-driven data centers, are already factored into its valuation. Dorsheimer also pointed toward improved margins and earnings performance, which benefited from Coherent, Inc. (NASDAQ:COHR)’s divestiture of its Aerospace & Defense unit.
Earlier, Coherent, Inc. (NASDAQ:COHR) released its Q1 2026 results on November 5, 2025, reporting $1.58 billion in revenue, up 17% YoY. Non-GAAP EPS came in at $1.16, an increase from $1.00 in the prior quarter. Despite record-level bookings, management highlighted ongoing supply constraints in indium phosphide lasers, limiting data center shipment capacity.
The company’s CEO, James Anderson, discussed plans to double indium phosphide capacity across its Texas and Sweden sites, as well as to advance its 6-inch production line to meet the growing demand for AI optical components. Furthermore, Coherent, Inc. (NASDAQ:COHR) continues its efforts to streamline operations, having exited 23 sites over the past five quarters and expanded module production in Asia to enhance delivery efficiency.
Coherent, Inc. (NASDAQ:COHR) serves the industrial, communications, and electronics markets by developing, manufacturing, and marketing engineered materials, optoelectronic components, and laser systems.
