In the United States, AI infrastructure spending is surging: Nvidia’s CEO projects a $3–4 trillion opportunity in AI infrastructure by 2030, driven by escalating demand from hyperscalers and major tech firms, per latest information by news agency Reuters. The chipmaker also anticipates that fiscal 2027 revenues could reach $366 billion, exceeding forecasts, a further signal that generative AI continues to propel growth across sectors. At the same time, rising costs and fierce competition are shaping infrastructure dynamics. Dell, for instance, has raised its annual shipment forecast for AI-optimized servers to $25 billion, up from $20 billion, as demand from clients like xAI and CoreWeave heats up. Nevertheless, high manufacturing costs and compressed margins are compressing profits, even as server sales ramp up.
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In China, regulators are adopting a more centralized approach to steer the rapidly expanding AI market. Authorities are distributing responsibilities across provinces to avoid redundant investment and to nurture regional strengths, while simultaneously supporting homegrown innovation through backing companies like DeepSeek, per a report by Reuters. Yet, observers warn that overregulation could limit agility for smaller firms and amplify past missteps in sectors like semiconductors. Labor dynamics also underscore AI’s evolving role in the economy. US Labor Secretary Lori Chavez-DeRemer recently reassured, per The New York Post, that AI is not poised to replace American workers, but to augment their roles—through reskilling initiatives, training programs, and generous federal investment.
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Our Methodology
For this article, we used stock screeners to identify AI data center stocks. The top twelve stocks were then ranked based on hedge fund interest. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 elite hedge funds.
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).
Best AI Data Center Stocks to Buy Right Now
12. Innodata Inc. (NASDAQ:INOD)
Number of Hedge Fund Holders: 23
Innodata Inc. (NASDAQ:INOD) has emerged as a data engineering partner for big tech companies in recent months. The firm has successfully pivoted to high-complexity data engineering for the Magnificent Seven and other frontier model builders. This provides it with a deep technical moat. Unlike competitors that use crowdsourced workers, Innodata utilizes subject-matter experts for Supervised Fine-Tuning (SFT) and Reinforcement Learning from Human Feedback (RLHF). In early 2026, Innodata secured a major partnership with Palantir to modernize AI-powered rodeo analytics and expanded its SHIELD contract for LLM safety. The overall financial performance of the company speaks for itself as well.
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Innodata Inc. (NASDAQ:INOD) reported 48% full-year organic revenue growth for 2025, reaching $251.7 million. Management has guided for 35%+ revenue growth in 2026. Hedge funds like Schonfeld Strategic Advisors and Millennium Management have established new or expanded positions to capture this upside. At the end of 2025, the company held $82.2 million in cash, allowing it to self-fund innovation in agentic AI and robotics data without diluting shareholders. It is also expanding into Physical AI. Innodata is now building egocentric and affordance-rich datasets used to train robots and drones. The company recently achieved a 6.45% improvement over previous state-of-the-art benchmarks in drone object detection, positioning it as a critical supplier for autonomous systems.
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