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.
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. (NASDAQ:INOD) 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. (NASDAQ:INOD) 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. (NASDAQ:MGNI) 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. (NASDAQ:MGNI), 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. (NYSE:OKLO) 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. (NYSE:OKLO) 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. (NASDAQ:ZS) 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. (NASDAQ:ZS) operates as a cloud security company worldwide. The company offers cyberthreat protection products. It also provides data security products.
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