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. (NASDAQ:PUBM) are establishing a framework where privacy-governed intelligence powers programmatic execution on the open web.
PubMatic Inc. (NASDAQ:PUBM) 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. (NASDAQ:CEVA) 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. (NASDAQ:CEVA) provides silicon and software IP solutions to semiconductor and OEM companies in the US, Europe, the Middle East, the Asia Pacific, and internationally.
Hedge Fund Resource Center