David Grain, Founder & CEO of Grain Management, joined CNBC on May 1 to discuss the AI-driven demand for data centers and tariff uncertainty. The main concerns regarding tariffs are the potential impact on costs, the resilience of supply chains, and the overall effect on business operations and their expansion. He also shared his perspective on why investors are still confident in the broadband and digital infrastructure sector. He characterized broadband as universally essential and emphasised that the demand for faster connectivity has not slowed, which is why the regulatory support for broadband expansion is globally robust. Grain noted that the administration has also met expectations for lighter regulation in the infrastructure sector, which makes it easier to advance projects and close deals. He described the admin’s stance as pro-growth and supportive of secure and competitive networks. Grain also observed that infrastructure, especially broadband, is an area where there is bipartisan support, given its positive impact on economic growth at both the state and local levels.
DeepSeek’s announcement was also followed by reports that suggested that some companies might be pulling back on data center spending. However, the latest earnings reports appeared to settle at least this debate and confirmed that the investments in this sector were still ongoing. David Grain elaborated on the current trends in data center investments and also stated that the demand for data centers is rising due to the increasing expansion of AI, as it requires vast amounts of computing power. He explained that while the demand here is not slowing, the feasibility of building new data centers is still influenced by the availability of reliable and high-capacity electricity.
That being said, we’re here with a list of the 11 hidden AI stocks to buy right now.
An overhead aerial shot of a bustling financial trading floor, focused on the buying and selling of stocks.
Our Methodology
We sifted through financial media reports to compile a list of the top hidden AI stocks with AI-related operations and opportunities. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Hidden AI Stocks to Buy Right Now
11. Sterling Infrastructure Inc. (NASDAQ:STRL)
Number of Hedge Fund Holders: 28
Sterling Infrastructure Inc. (NASDAQ:STRL) provides e-infrastructure, transportation, and building solutions in the US and operates through three segments. It also constructs and develops data centers, which are essential for supporting the rapidly surging AI workloads. The company was formerly known as Sterling Construction Company Inc. until June 2022.
In Q4 2024, Sterling Construction’s e-infrastructure revenue increased by 8% year-over-year. This was due to growth in the data center market, the revenue for which increased by more than 50%. The e-infrastructure backlog ended 2024 at over $1 billion, which was up 27%, with mission-critical work, such as data centers, which represent over 60% of the backlog. For 2025, Sterling Infrastructure Inc. (NASDAQ:STRL) expects strong e-infrastructure revenue growth above 10%.
The stock is down so far in 2025 due to the general slowdown of hype surrounding AI and data centers. However, on February 26, DA Davidson analyst Brent Thielman upgraded the stock to Buy from Neutral with an unchanged price target of $185. The firm stated that the recent share pullback is a good buying opportunity.
NCG Small Cap Strategy stated the following regarding Sterling Infrastructure, Inc. (NASDAQ:STRL) in its Q2 2024 investor letter:
“Sterling Infrastructure, Inc. (NASDAQ:STRL) is a construction and infrastructure services provider for the buildout of data centers, manufacturing facilities, warehouses, transportation, and residential and commercial buildings. Over the years, the company improved their financial performance by shifting focus to higher growth end markets which allowed for better visibility and project economics. We believe revenue growth and margin expansion should continue as end market tailwinds persist.”
10. Samsara Inc. (NYSE:IOT)
Number of Hedge Fund Holders: 40
Samsara Inc. (NYSE:IOT) provides solutions to connect physical operations data to its connected operations platform in the US and internationally. Its Connected Operations Platform includes the Data Platform, which ingests, aggregates, and enriches data from its IoT devices. The company also integrates AI into its data platform and video-based safety applications.
Samsara’s large operational data asset is crucial for its AI initiatives. It processes over 14 trillion data points annually. AI is now being applied across areas like predictive maintenance, real-time route adjustments, and automated driver safety. Samsara is developing and deploying Manhattan Assist features across its platform, which uses GenAI. The company also plans to preview more Agentic AI capabilities at its upcoming Beyond customer conference.
For the full fiscal year 2025, the company made $1.25 billion in revenue, which was up 33% year-over-year. The annual recurring revenue in the period totaled $1.46 billion, which was up 33%. Samsara Inc. (NYSE:IOT) highlights that AI has become 100 times less expensive in the last two years and is becoming increasingly accessible. On February 3rd, Berenberg analyst Nay Soe Naing initiated coverage of Samsara with a Hold rating and a $57 stock price target.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Samsara Inc. (NYSE:IOT) in its Q3 2024 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Samsara Inc. (NYSE:IOT) develops Internet connected sensor systems. Strong results boosted the stock by 43%. The quarter was highlighted by new customer wins and revenue growth. Samsara’s value proposition is their products create tangible return on investment. Its client space spans across construction, field services, utilities, transportation, and logistics.”
