In this article, we will discuss the 11 Best AI Stocks with Huge Upside Potential.
On February 27, Mike Intrator, the Co-Founder and CEO of CoreWeave, joined ‘Squawk on the Street’ on CNBC to discuss the demand for AI infrastructure. Intrator explained that for the past three years, demand has never wavered and is currently increasing as it broadens across the global economy. He noted that the customer base is expanding beyond AI labs and cloud providers into large enterprises and sovereign entities, leaving the company constrained only by its own ability to deliver capacity to the market.
Addressing the discrepancy between a positive business narrative and a poorly performing stock price, Intrator emphasized his focus on capturing a generational opportunity during a global build-out of compute. He revealed that the company made an intentional decision to accelerate infrastructure builds, fully understanding that it would result in a short-term margin hit. He justified the current spending by explaining the fundamental mechanics of the business: investments made today secure compute sales for the next five years. He expressed high confidence in the return profile and noted that a stabilized data center is expected to generate margins in the mid-20s.
Our Methodology
We used screeners to identify AI stocks with an average upside potential of at least 40%, 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.
Note: All data was sourced on March 16.
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).
11 Best AI Stocks with Huge Upside Potential
11. PubMatic Inc. (NASDAQ:PUBM)
PubMatic Inc. (NASDAQ:PUBM) is one of the best AI stocks with huge upside potential. On March 12, PubMatic and Optable partnered to integrate privacy-safe, first-party audience data into automated media buying workflows via PubMatic’s AgenticOS. This collaboration allows Optable’s ‘Audience Agent’ to work within PubMatic’s AI-driven infrastructure, enabling advertisers to discover and activate high-value audience signals from premium publishers autonomously.
By using agent-to-agent communication, the partnership facilitates complex audience planning and real-time bidding without the need to transfer or expose sensitive underlying data. The integration focuses on enhancing addressability and yield for publishers while simplifying the procurement process for buyers. Publishers can surface custom audience segments to advertisers through Optable’s platform, which then connects directly to PubMatic Activate for immediate execution.
This streamlined approach allows participants to tap into agentic demand without requiring significant changes to their existing technical infrastructure. This partnership serves as a real-world application of the Advertising Context Protocol/AdCP, highlighting a shift toward decentralized, interoperable AI collaboration in advertising. By moving away from centralized data systems, Optable and PubMatic Inc. are establishing a framework where privacy-governed intelligence powers programmatic execution on the open web.
PubMatic Inc. is a technology company that provides a cloud infrastructure platform that enables real-time programmatic advertising transactions for digital content creators, advertisers, agencies, agency trading desks, and demand side platforms worldwide.
10. Ceva Inc. (NASDAQ:CEVA)
Ceva Inc. (NASDAQ:CEVA) is one of the best AI stocks with huge upside potential. On March 3, Ceva introduced PentaG-NTN, a 5G-Advanced modem IP subsystem designed specifically for satellite user terminals operating in Low Earth Orbit/LEO and Medium Earth Orbit/MEO constellations. As satellite connectivity becomes a critical extension of 5G networks, this new platform aims to bridge the gap between traditional satellite engineering and complex cellular baseband modem design.
By providing a plug-and-play subsystem, Ceva enables satellite-native organizations to rapidly deploy standards-compliant connectivity while reducing silicon development risk and associated costs. The PentaG-NTN subsystem is built on Ceva’s third-generation platform, which optimizes performance for the unique challenges of space-based communication, such as high Doppler shifts, timing offsets, and long propagation delays.
It supports 3GPP Release-18 standards and offers scalable data rates from 10 Mbps to 2 Gbps. Crucially, the architecture combines hardware acceleration with programmable digital signal processors/DSPs, allowing companies to integrate their own proprietary communication algorithms or waveforms alongside standard 5G functionality to differentiate their services. Ceva Inc. estimates that this integrated approach can reduce modem development time by ~65% and save tens of millions of dollars in research and development expenses. The platform also includes a terrestrial derivative, PentaG-Edge, aimed at 5G-Advanced IoT and edge applications.
Ceva Inc. provides silicon and software IP solutions to semiconductor and OEM companies in the US, Europe, the Middle East, the Asia Pacific, and internationally.
9. Innodata Inc. (NASDAQ:INOD)
Innodata Inc. (NASDAQ:INOD) is one of the best AI stocks with huge upside potential. On February 26, Innodata reported earnings for 2025, characterized by 48% full-year organic revenue growth, totaling $251.7 million. Q4 alone generated $72.4 million in revenue, a 22% increase year-over-year. The CEO noted that the company is evolving from a data supplier to a strategic lifecycle partner for frontier AI initiatives, driven by accelerating demand in model training, agentic AI, and physical AI. This momentum has led management to project revenue growth of 35% or more for 2026 as programs continue to scale.
The company achieved significant margin expansion in 2025, with full-year Adjusted EBITDA rising 68% to $57.9 million. While Q4 net income saw a slight dip to $8.8 million from $10.3 million in the prior year, annual net income grew to $32.2 million. Innodata is aggressively reinvesting these gains into data-centric innovations, including specialized dataset engineering for robotics and high-fidelity attack simulations to enhance AI resilience. These technical advancements have reportedly resulted in measurable gains in AI agent performance and drone detection benchmarks.
Innodata Inc. ended the year with a strong balance sheet, reporting $82.2 million in cash and short-term investments, nearly double the $46.9 million held at the end of 2024. The company’s structural foundation for 2026 focuses on margin expansion through automation and synthetic data generation platforms. With expanding customer diversification and a leadership position in the generative AI value chain, the company remains focused on the precision and rigor of data ecosystems to make large-scale models production-ready.
Innodata Inc. operates as a data engineering company in the US, the UK, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions/DDS, Synodex, and Agility.
8. Magnite Inc. (NASDAQ:MGNI)
Magnite Inc. (NASDAQ:MGNI) is one of the best AI stocks with huge upside potential. On March 11, Magnite and NOVA Entertainment entered a partnership to enable programmatic advertising across the Nova Retail Network, a prominent in-store audio network in Australia. This collaboration integrates NOVA’s premium digital audio inventory with Magnite’s sell-side technology, allowing advertisers to reach millions of shoppers at the point of purchase. By automating the buying process, the partnership aims to streamline campaign activation and provide brands with more efficient access to high-impact retail environments.
Earlier, on February 25, Magnite announced earnings for 2025, where Management reported reaching a pivotal milestone in autonomous advertising with the deployment of the Advertising Context Protocol/adCP on its SpringServe platform. This technology enabled the execution of what is believed to be the industry’s first agent-to-agent campaign, where AI-driven buyer and seller agents interpreted campaign briefs and matched inventory with audiences to transact media. These foundational AI integrations are designed to modernize the buying experience by streamlining manual processes and increasing throughput across existing infrastructure rather than displacing it.
As the programmatic ecosystem evolves toward a future involving thousands of autonomous agents, Magnite Inc. positions its scaled sell-side infrastructure as a necessary anchor for interoperability and standardization. The company is continuing to refine the adCP framework through ongoing test campaigns in early 2026, using its deep data assets to improve workflow efficiency. By applying AI across the end-to-end workflow, the platform aims to enhance traditional programmatic execution while maintaining its role in managing auction mechanics, compliance, and financial settlements in an increasingly automated marketplace.
Magnite Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the US and internationally.
7. Oklo Inc. (NYSE:OKLO)
Oklo Inc. (NYSE:OKLO) is one of the best AI stocks with huge upside potential. On March 9, Oklo and Centrus Energy Corporation (NYSE:LEU) announced plans to pursue a JV aimed at advancing domestic nuclear fuel services in Piketon, Ohio. The collaboration will focus on deconversion services for high-assay low-enriched uranium/HALEU, a critical step where enriched uranium is transformed into a chemical form suitable for fuel fabrication.
By establishing these operations at Centrus’ existing Ohio site, the companies intend to create an integrated hub that co-locates enrichment and deconversion to improve efficiency and reduce costs for the advanced nuclear industry. The partnership seeks to address a significant bottleneck in the US nuclear supply chain by expanding domestic capacity for advanced reactor fuels. Currently, various HALEU-fueled technologies are under development, and a centralized deconversion hub could eliminate the need for individual fuel fabrication plants to maintain their own separate lines.
This move is expected to simplify logistics, lower shipping costs, and enhance the overall competitiveness of the US nuclear sector as it moves toward large-scale deployment. Beyond technical operations, Oklo Inc. and Centrus plan to coordinate on regulatory and research activities, including engagement with federal and local agencies to support the infrastructure in Pike County. This initiative aligns with broader regional redevelopment efforts led by the Southern Ohio Diversification Initiative to transform the former Portsmouth Gaseous Diffusion Plant into a clean energy center.
Oklo Inc. develops advanced fission power plants to provide clean, reliable, and affordable energy at scale to customers in the US, specifically targeting the high power demands of AI data centers. It also commercializes nuclear fuel recycling tech that converts nuclear waste into usable fuel for its reactors.
6. Zscaler Inc. (NASDAQ:ZS)
Zscaler Inc. (NASDAQ:ZS) is one of the best AI stocks with huge upside potential. On March 12, Zscaler announced a significant expansion of its global data sovereignty capabilities through its Zero Trust Exchange platform. The company is extending its dedicated control and logging planes to new regions, including an upcoming deployment in Canada, to help enterprises comply with local laws without sacrificing performance. This architecture uses fully isolated layers for management, traffic inspection, and record-keeping, ensuring that sensitive data remains within its required jurisdiction.
To further support digital sovereignty, Zscaler Inc. introduced in-region SSL inspection and malware analysis, allowing encrypted traffic to be analyzed locally to prevent data from leaving a specific territory. The platform also offers private, single-tenant service edges for organizations with specific hardware certification needs, alongside dedicated technical teams to assist with national regulatory interpretation. These enhancements aim to resolve the conflict between strict data protection mandates and the need for cross-border collaboration.
The expansion is backed by third-party validation and a ‘Collect Once, Certify All’ framework designed to accelerate compliance with regulations like GDPR, NIS2, and DoD IL5. Customers maintain total ownership of their encryption keys and can choose between regional or on-premises log storage. Because Zscaler owns and operates its own cloud infrastructure rather than relying on third-party providers, the platform is designed to ensure high availability and business continuity even during regional outages.
Zscaler Inc. operates as a cloud security company worldwide. The company offers cyberthreat protection products. It also provides data security products.
5. Datadog Inc. (NASDAQ:DDOG)
Datadog Inc. (NASDAQ:DDOG) is one of the best AI stocks with huge upside potential. On March 9, Datadog announced plans to establish a new data center presence in the UK to support the accelerating cloud adoption within highly regulated industries. This expansion adds to the company’s existing infrastructure in North America, Asia, and Europe, providing local data storage, residency, and security for UK-based organizations.
The move is designed to help customers in sectors such as government, banking, and healthcare manage evolving data governance requirements while reducing latency for their observability and security operations. The decision comes as UK organizations face increased scrutiny over data storage and processing, particularly following the Data (Use and Access) Act 2025. With ~60% of public sector IT systems running on cloud infrastructure and over 80% of financial firms operating in hybrid or multi-cloud environments, the demand for localized data handling has grown.
Datadog’s leadership noted that storing operational data locally has become a practical necessity for companies scaling their AI and cloud capabilities under these modern regulatory frameworks. Scheduled to open later in 2026, the new facility will support Datadog’s entire suite of AI-powered observability and security products. By providing a dedicated UK-resident environment, Datadog Inc. aims to offer a reliable platform for organizations to modernize their critical systems without compromising on-region data storage requirements.
Datadog Inc. operates an observability and security platform for cloud applications in the US and internationally.
4. ServiceNow Inc. (NYSE:NOW)
ServiceNow Inc. (NYSE:NOW) is one of the best AI stocks with huge upside potential. On March 16, ServiceNow and Carahsoft Technology Corporation expanded their partnership to distribute the ServiceNow AI platform across broader commercial and industrial sectors in the US and Canada. This agreement marks the first time ServiceNow will use Carahsoft’s extensive network of over 10,000 resellers to reach industries such as healthcare, financial services, manufacturing, and critical infrastructure.
The collaboration is designed to provide these sectors with the same AI-driven ‘control tower’ capabilities previously focused on government and public sector clients. Carahsoft, known as a leading government IT distributor with $23 billion in annual bookings, is using its reputation for security and compliance to enter regulated private markets. By integrating ServiceNow into these channels, the partnership caters to organizations that prefer purchasing through established, trusted partners rather than direct enterprise sales.
This strategy allows ServiceNow Inc. to meet specific customer demands for complex procurement and high-security technology deployment across North America. The expansion aims to accelerate the adoption of AI solutions by offering greater flexibility in how organizations acquire and implement technology. Through a specialized network of consulting and implementation partners, Carahsoft intends to simplify the acquisition process for its diverse client base.
ServiceNow Inc. provides a cloud-based solution for digital workflows in North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company has a collaboration with Autonomize AI for the development of AI-driven healthcare solutions for payers.
3. AeroVironment Inc. (NASDAQ:AVAV)
AeroVironment Inc. (NASDAQ:AVAV) is one of the best AI stocks with huge upside potential. On March 10, AeroVironment reported FQ3 2026 revenue of $408.0 million, representing a 143% increase year-over-year. This growth was driven by the acquisition of BlueHalo, which contributed $176.5 million to the quarter’s total product & service revenue. While the Autonomous Systems segment led with $278.7 million in revenue, the company also saw demand reflected in a record-funded backlog of $1.1 billion.
Despite higher sales, the company faced non-cash charges that impacted the bottom line. AeroVironment recognized a $151.3 million goodwill impairment charge within its Space reporting unit following a stop-work order on the BADGER phased array antenna systems for the Space Force. Additionally, gross margin as a percentage of revenue decreased to 24%, down from 38% the prior year, due to an increased proportion of service revenue from BlueHalo and $43.9 million in intangible amortization & purchase accounting expenses. These factors led to a loss from operations of $179.0 million for the quarter.
For FQ3, AeroVironment Inc. reported a net loss of $156.6 million, or $3.15 per diluted share. Looking ahead, the company has updated its full-year fiscal 2026 guidance, projecting total revenue between $1.85 billion and $1.95 billion, supported by a strong book-to-bill ratio of 1.6 for the first nine months of the fiscal year.
AeroVironment Inc. is a global defense technology leader that designs, develops, produces, delivers, and supports a portfolio of robotic systems & related services in the US and internationally. It operates in two segments: Autonomous Systems; and Space, Cyber & Directed Energy.
2. Zebra Technologies Corporation (NASDAQ:ZBRA)
Zebra Technologies Corporation (NASDAQ:ZBRA) is one of the best AI stocks with huge upside potential. On February 12, Zebra Technologies reported a strong conclusion to 2025, with Q4 net sales reaching $1,475 million, which was a 10.6% increase year-over-year. This growth was led by the Connected Frontline segment, which saw sales rise to $854 million, supported by the integration of the Elo Touch acquisition and a 2.5% increase in consolidated organic net sales.
While the company achieved an Adjusted EBITDA of $326 million (a 10.5% improvement), GAAP net income fell to $70 million, primarily due to $76 million in restructuring charges and the strategic decision to exit the robotics business. The company is sharpening its focus on high-growth opportunities by digitizing and automating workflows across its two primary divisions. The Asset Visibility & Automation segment contributed $621 million to quarterly net sales, while the Connected Frontline segment remained the primary growth driver.
Operating expenses for the quarter rose to $559 million, reflecting both the costs of reorganization and the expanded scale of the business following recent acquisitions. Zebra Technologies Corporation continues to prioritize the return of capital to its shareholders, completing $303 million in share repurchases during Q4 as part of an initial $500 million commitment. To further this strategy, the Board of Directors has authorized an additional $1 billion for future share repurchases.
Zebra Technologies Corporation, together with its subsidiaries, operates in the automatic identification and data capture solutions industry worldwide. It operates in two segments: Connected Frontline and Asset Visibility & Automation.
1. Alibaba Group Holding Limited (NYSE:BABA)
Alibaba Group Holding Limited (NYSE:BABA) is one of the best AI stocks with huge upside potential. On March 16, Bloomberg reported that Alibaba is consolidating its AI operations into a new business unit called Alibaba Token Hub. Led directly by CEO Eddie Wu, this division will integrate the research team behind the flagship Qwen models with consumer-facing applications, the DingTalk communication platform, and Quark-branded hardware like smart glasses.
The restructuring aims to improve coordination between researchers and product developers while signaling a shift toward monetizing AI through enterprise-facing services and computing units. The revamp follows the sudden departure of Qwen’s lead researcher, Junyang Lin, and comes as Chinese tech firms struggle to match the profitability of Western rivals like OpenAI.
Unlike international markets, Chinese consumers are often reluctant to pay for software subscriptions, and many domestic models remain open-source. By naming the unit after ‘tokens’ (the standard units of AI data processing), Alibaba is emphasizing a business model built around delivering and applying computing power to generate revenue. Moving forward, Alibaba Group Holding Limited plans to launch a dedicated agentic AI service for corporate clients, potentially integrating it with core platforms like Taobao and Alipay to streamline tasks from search to checkout.
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses engage with their users and customers in the People’s Republic of China and internationally.
While we acknowledge the potential of BABA 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 BABA and that has 100x upside potential, check out our report about the cheapest AI stock.
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