In this article, we will take a look at the 12 Best Big Data Stocks to Invest In.
Back in 2024, the rise of generative AI took the spotlight in the market, with the discussion shifting to agents in 2025. As we move forward with 2026, AI has once again caught the attention of Wall Street, driving investors to invest in stocks related to the industry. As companies embrace AI and automation, investors appear to be leaning toward big data companies that offer AI-powered analytics tools. Notably, companies that insist on real-time data processing and analytics are also raking in attention, owing to the increased demand for businesses to make speedy decisions based on real-time data.
Additionally, discussions around data centers have grown more common as the AI revolution, especially in the context of big data, gains momentum. Global data-center dealmaking reached a new high through late 2025, fueled by a growing demand for data analytics and computing hardware to satisfy the growth in artificial intelligence usage. According to S&P Global Market Intelligence, there were over 100 data center transactions during the period, with a total value coming in just under $61 billion. As demand transitions toward AI inference, enterprise cloud workloads, and next-generation computation, analysts like Vikram Malhotra of Mizuho argue that 2026 may represent an evolutionary phase rather than a decline, despite worries about a possible AI bubble weighing on the market.
Equity investors have also been getting increasingly positive about the AI cycle’s long-term durability. Barbara Duran, CEO of BD8 Capital Partners, came on CNBC’s ‘Closing Bell Overtime’ on December 29 and pointed out that comparisons to the dot-com bubble are somewhat exaggerated, noting that corporate AI adoption is actually in its infancy, with many companies still shifting from trial runs to full-scale deployment. She noted rising AI chip demand, higher platform usage, and record data-center growth as signs of legitimate, rather than hypothetical development.
Nonetheless, Jeffrey Buchbinder, chief equities strategist at LPL Financial, warns investors not to shy away from diversifying investments, stating that, if it comes to pass, AI disappointment could represent the most significant risk market in 2026, and that an AI-related drop might shake markets. Despite this danger, he and others believe that increased AI adoption, and the potential productivity it might brings, could propel the economy and stock market higher in the coming year. He added:
“Several powerful cycles should help push stocks higher in 2026, most notably the AI investment cycle that has powered technology stocks in 2025. A maturing advance during a Fed rate-cutting cycle with stocks near all-time highs also bodes well for a rewarding 2026.”
Our Methodology
To compile the list of best data stocks to buy, we reviewed Big Data ETFs to compile a preliminary list of stocks that are either pure-play big data/analytics stocks, or are heavily involved in the sector. We then ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s Q3 2025 database.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. NICE Ltd. (NASDAQ:NICE)
Number of Hedge Fund Holders: 22
NICE Ltd. (NASDAQ:NICE) ranks among the best big data stocks to invest in. On December 23, Piper Sandler reiterated its Neutral rating and $122 price target for NICE Ltd. (NASDAQ:NICE), voicing concern about NICE’s capability to meet its Cloud targets for 2028 without significant M&A operations.
Piper Sandler praised NICE’s recent acquisition of Cognigy as an important move toward the conversational AI sector, though it pointed out that private competitors like Sierra.AI seem to have more traction across this area.
Additionally, Piper Sandler said that NICE had a number of ways to generate value for shareholders, such as possibly selling off its FCC division, though it projected that the stock will “remain pressured” owing to market pessimism regarding the company’s mid-term goals.
On the other hand, Wedbush analyst Daniel Ives downgraded NICE Ltd. (NASDAQ:NICE) to Neutral from Outperform on December 8 as the company faces a rapidly challenging CX AI landscape while providing ambitious long-term goals announced at its Capital Markets Day at the cost of near-term margins, which the firm considers a risky compromise.
NICE Ltd. (NASDAQ:NICE) offers AI-powered cloud platforms for digital business solutions across the world. Its services include CXone for customer experience, the Enlighten AI engine, and smart self-service solutions. The company employs artificial intelligence and analytics to avoid fraud and ensure AML compliance.
11. Tyler Technologies, Inc. (NYSE:TYL)
Number of Hedge Fund Holders: 44
Tyler Technologies, Inc. (NYSE:TYL) ranks among the best big data stocks to invest in. On December 12, TD Cowen began coverage of Tyler Technologies, Inc. (NYSE:TYL) with a Buy rating and a $650 price target. Tyler Technologies, Inc. (NYSE:TYL) was named the leading vendor in the public sector market, which the firm regarded as not only substantial, but also stable.
TD Cowen forecasted roughly 20% long-term growth in software-as-a-service (SaaS), mostly due to cloud migrations. The firm predicts that these cloud migrations would accelerate between 2027 and 2028. The firm also indicated interest in the Tyler Tech’s new artificial intelligence solutions.
In order to bolster its products in 2025, Tyler Technologies, Inc. (NYSE:TYL) has also completed a number of strategic acquisitions. The company purchased Edu.Link Incorporated in order to increase workflow automation, compliance tracking, and instructor evaluations as part of its K–12 HR solutions. Tyler Technologies, Inc. (NYSE:TYL) also bought CloudGavel to boost its electronic warrant solutions, increasing the effectiveness of warrant submissions and assessments in the legal and public safety sectors.
Tyler Technologies, Inc. (NYSE:TYL) is a leading provider of integrated software and services to the North American public sector. The company’s cloud-based solutions allow local governments and public institutions to enhance their data management capabilities as their data evolves.
10. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 52
Elastic N.V. (NYSE:ESTC) ranks among the best big data stocks to invest in. Elastic N.V. (NYSE:ESTC) announced a number of major collaborations in December. Notably, the company partnered with the Cybersecurity and Infrastructure Security Agency on December 16 to establish a Security Information and Event Management as a Service platform for US federal civilian agencies.
The endeavor is managed under a $26 million base-year contract with ECS, which could be renewed for up to four more years, reaching a total agreement valued at $130 million. The deal enables CISA to use Elastic’s cloud-based software for uniform cybersecurity monitoring across Federal Civilian Executive Branch Agencies.
Additionally, on December 1, Elastic N.V. (NYSE:ESTC) unveiled an update for Amazon Bedrock AgentCore that makes it possible to monitor and troubleshoot AI agents using the Elasticsearch platform. The software offers monitoring features that enables users to keep track of agent performance, managing expenses, understanding agent reasoning processes, and sustaining dependable agent workloads.
Elastic N.V. (NYSE:ESTC) is a software company that provides solutions for search, logging, analytics, security, and observability. With its machine-learning capabilities, the company allows users to automate a wide range of tasks, including anomaly detection and root cause analysis.
9. Rubrik Inc. (NYSE:RBRK)
Number of Hedge Fund Holders: 52
Rubrik Inc. (NYSE:RBRK) ranks among the best big data stocks to invest in. Goldman Sachs reaffirmed its Buy rating and $120 price target for Rubrik Inc. (NYSE:RBRK) on December 19, as the stock fell 17% from its post-earnings highs. The firm attributes the pressure at that point to Lightspeed’s in-kind distribution of nearly 3 million shares, which began on December 11, as well as a broader decrease in high-growth security software names.
Goldman Sachs adds that the company’s shares has reverted to slightly above pre-third quarter valuations despite Rubrik’s solid beat-and-raise quarter, implying that investors are discounting the company’s mid-30s ARR growth trajectory and improved free cash flow profile.
In the third quarter, the data security company surpassed consensus projections on several parameters, including revenue, subscription ARR, operating income, and free cash flow. Rubrik Inc. (NYSE:RBRK) added over $95 million in net new subscriber ARR, indicating a sequential acceleration and increased platform use. The company also maintains a net revenue retention rate of more than 120% and boasts strong large-deal activity.
Rubrik Inc. (NYSE:RBRK) provides data security solutions to individuals and businesses worldwide. The company offers enterprise data protection, cloud data protection, data threat analytics, and cyber recovery solutions.
8. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 66
International Business Machines Corporation (NYSE:IBM) ranks among the best big data stocks to invest in. On December 10, Bernstein SocGen Group maintained its Market Perform rating for International Business Machines Corporation (NYSE:IBM), with a $280 price target on the company’s shares. The rating follows IBM’s plans to buy all outstanding common shares of Confluent for $31 per share in cash, representing an enterprise value of roughly $11 billion.
According to analyst Mark C. Newman, the deal is likely to boost IBM’s adjusted EBITDA during the first full year of completion.
The purchase is also expected to boost IBM’s free cash flow in the second year after completion.
On the other hand, S&P Global Ratings lowered IBM’s outlook to negative, projecting that the acquisition will keep the company’s leverage at roughly 2.5x in fiscal 2026. However, the firm anticipates IBM’s revenue to increase by 6% in fiscal 2025 as a result of robust growth in the software and infrastructure areas following the launch of z17.
International Business Machines Corporation (NYSE:IBM) is a global technology leader providing software, consulting, and infrastructure solutions, with a strategic emphasis on hybrid cloud and artificial intelligence. The company is heavily involved in big data through its enterprise data and analytics portfolio, delivering essential platforms like IBM Db2, Netezza (data warehousing), and IBM Cloud Pak for Data.
7. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 66
Accenture plc (NYSE:ACN) ranks among the best big data stocks to invest in. UBS increased its price target for Accenture plc (NYSE:ACN) from $315 to $320 on December 19 while maintaining a Buy rating on the company’s shares, noting Accenture’s solid artificial intelligence position and steady demand. Accenture’s Advanced AI revenue reached $1.1 billion in the first quarter, up 120% year-over-year, while Advanced AI bookings were $2.2 billion, up 76% from the prior year.
UBS cited Accenture’s growth in data center professional services, a sector that is predicted to double by 2030, and said the company’s leading ten alliance agreements are driving growth that surpasses total company performance.
The firm also noted Accenture’s capital return program, which includes $3.3 billion disbursed through $2.3 billion in share buybacks and $1 billion in dividends, as customers continue to focus on transformational programs through what UBS termed as a solid demand environment.
Accenture plc (NYSE:ACN), based in Dublin, Ireland, is a multinational professional services firm specializing in IT consulting, digital transformation, and management solutions. The company took its foray into predictive analytics over a decade ago and is on track to become a premier data company.
6. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 72
Datadog, Inc. (NASDAQ:DDOG) ranks among the best big data stocks to invest in. On December 29, MoffettNathanson reiterated its Buy rating and $255 price target for Datadog, Inc. (NASDAQ:DDOG), despite the stock’s recent fall from an all-time high back in November. The firm stated that Datadog, Inc. (NASDAQ:DDOG) had “one of the strongest quarters” within its coverage umbrella during the recent earnings period, benefiting greatly from AI-native operations throughout the year.
MoffettNathanson links the DDOG stock’s dip to “the market’s more cautious stance on the AI trade,” though it adds that the selloff is “overdone” and represents a “attractive buying opportunity” for buyers in 2026.
Datadog, Inc. (NASDAQ:DDOG) announced third-quarter revenue of $886 million, a 28% increase year-over-year and 4% above consensus. The company also reported that growth among both AI-native and non-AI clients has surged, with sequential usage rates among non-AI clients reaching a 12-quarter peak.
The company’s earnings per share of $0.55 also beat predictions by $0.09, while its free cash flow of $214 million crossed forecasts.
Datadog, Inc. (NASDAQ:DDOG) is a software company that provides an observability solution built for cloud-scale applications, monitoring servers, databases, tools, and services via its SaaS-based data analytics platform. The company’s tools serve as information technology monitoring and analytics solutions that allow for the examination of performance indicators and event tracking for cloud services.
5. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 81
Palantir Technologies Inc. (NASDAQ:PLTR) ranks among the best big data stocks to invest in. Following investor discussions with Palantir Technologies Inc. (NASDAQ:PLTR) executives in South Korea, BofA Securities reiterated its Buy rating and $255 price target for the company’s shares on December 15. According to BofA analyst Mariana Perez Mora, Palantir’s CFO Dave Glazer attended the discussions, as did Deployment Strategists Hind Kraytem and Austin Lee, and Investor Relations representative Cary Li.
BofA voiced optimism regarding Palantir’s growth trajectory, a development coinciding with enterprise-level AI use. The firm added that US Commercial continues to showcase the highest progress, aided by a growing backlog, shorter contract durations, and customers moving quickly through Palantir’s value chain.
Palantir Technologies Inc. (NASDAQ:PLTR) also recently won a $448 million, two-year US Navy award in the government business sector. The agreement, known as ShipOS, intends to improve naval shipbuilding operations by implementing Palantir’s Foundry and Artificial Intelligence Platform throughout the Maritime Industrial Base. BofA stated that this contract fits Palantir Technologies Inc. (NASDAQ:PLTR) with the Trump administration’s aspirations for American reindustrialization.
Palantir Technologies Inc. (NASDAQ:PLTR) is a software company that provides platforms to help organizations integrate, manage, and secure large datasets for human-driven analysis. Its two primary platforms are Gotham, used by government and defense agencies for intelligence and defense operations, and Foundry.
4. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 89
MongoDB, Inc. (NASDAQ:MDB) ranks among the best big data stocks to invest in. On December 15, Raymond James began coverage of MongoDB, Inc. (NASDAQ:MDB), with a Market Perform rating. The firm’s analysis underlines MongoDB’s place at a “pivotal strategic crossroads” characterized by two important factors: the growth of AI and agentic technologies demanding dynamic data infrastructure, as well as increased competition from analytical tools pushing into MongoDB’s territory.
Although Raymond James recognizes MongoDB, Inc. (NASDAQ:MDB) as “one of the most strategically important independent database platforms,” it believes that going forward, the investment debate will be “increasingly balanced.” According to the firm, MongoDB’s ability to maintain developer and enterprise interest against well-funded competitors, navigate its consumption-driven revenue model with little near-term visibility, and offer sustainable growth topping 20% with a Rule of 40-plus profile will determine its future performance.
Additionally, in Q3 2025, the database software supplier reported adjusted earnings of $1.32 per share on $628 million in revenue. According to MongoDB, Inc. (NASDAQ:MDB), its Atlas platform generated 75% of the quarter’s total revenue and rose by 30% from the previous year. The company added that there were over 60,800 Atlas users at the end of the period, and the platform’s revenues are predicted to increase by 27% during the current period.
MongoDB, Inc. (NASDAQ:MDB) provides a comprehensive database platform with enterprise-grade solutions, cloud-based services, and a free version for developers. MongoDB’s document model supports complicated hierarchies and arrays, making it ideal for Big Data analytics.
3. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 102
Snowflake Inc. (NYSE:SNOW) ranks among the best big data stocks to invest in. Raymond James gave Snowflake Inc. (NYSE:SNOW) an Outperform rating on December 16, arguing that the stock’s trajectory would be determined by the outcome of a number of key strategic and financial disputes in the years ahead. Analyst Adam Tindle believes Snowflake Inc. (NYSE:SNOW) is at a tipping point as it transitions from a cloud data center to a broader information and artificial intelligence platform, with long-term growth and margin sustainability still being scrutinized.
Tindle highlights Snowflake’s growing AI portfolio, which has now exceeded a $100 million AI revenue run-rate. The analyst also identified net revenue retention, Global 2000 penetration, and attach rates in new workloads as key indicators for determining whether the company is capable of increasing wallet share.
Tindle further stated that by integrating Apache Iceberg and establishing the Polaris Catalog, Snowflake Inc. (NYSE:SNOW) has reduced obstacles to adoption in open data environments. While this helps with gaining new clients, it also lessens retention.
Snowflake Inc. (NYSE:SNOW) is an American cloud-based data storage company that provides a platform for data analysis and simultaneous access to large datasets with low latency. The platform is based on AWS, Microsoft Azure, and Google Cloud Platform. Snowflake Inc.’s (NYSE:SNOW) predictive analytics features uncover patterns in data from diagnostic and descriptive analytics, enabling predictive data modeling of future trends.
2. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) ranks among the best big data stocks to invest in. On December 12, Evercore ISI reaffirmed its Outperform rating and $275 price target for Oracle Corporation (NYSE:ORCL), citing the company’s considerable data center lease contracts. The firm stated that Oracle’s multi-year data center leases are priced around $1.2 billion per month, with the capacity to sustain around 7.6 gigawatts of data center power.
Evercore ISI predicts that this network may create almost $76 billion in annual GPU cloud revenue, considering that each megawatt generates $10 million in revenue. Evercore ISI states that Oracle’s lease commitments account for approximately 18% of total cloud operation costs, which is consistent with the company’s earlier statements during its analyst day.
Oracle Corporation (NYSE:ORCL) has also expanded its multicloud database solution in Canada by making Oracle Database available on Google Cloud in the Montreal and Toronto areas. This development enables Canadian enterprises to capitalize on Oracle’s database services on Google Cloud platforms, satisfying data residency requirements and facilitating integration with Google’s analytics and AI capabilities.
Oracle Corporation (NYSE:ORCL) is a leading data analytics firm that provides a wide range of products, including software, apps, and cloud infrastructure. Oracle Analytics provides four types of solutions and works well with its Autonomous Database platform.
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 183
Alphabet Inc. (NASDAQ:GOOGL) ranks among the best big data stocks to invest in. On December 31, Citizens raised its price target for Alphabet Inc. (NASDAQ:GOOGL) to $385 from $340 retaining a Market Outperform rating on the company’s shares. The firm noted projections that Google may boost search revenue in the fourth quarter of 2025, something it considers as the company’s greatest near-term issue.
The firm stated that Smart Bidding Exploration is raising Google’s ad load by increasing the percentage of inquiries associated with advertising. The third quarter marked the first complete quarter with Smart Bidding Exploration, and Citizens believes that the fourth quarter will reap the rewards in a similar manner.
Additionally, on December 22, Alphabet Inc. (NASDAQ:GOOGL) announced its plans to acquire Intersect, a provider of data center and energy infrastructure solutions, for $4.75 billion. The aim is to increase Google’s capacity to generate power for its data centers.
Google already has a minority position in Intersect from a fundraising round announced in December last year. Intersect stated in a press release at the time that its strategic alliance with Google and TPG Rise Climate sought to construct gigawatts of data center capacity in the United States.
A key player in the technology sector, Alphabet Inc. (NASDAQ:GOOGL) is led by Google, a search engine that handles billions of search queries every day. The company owns a number of applications and productivity platforms, the most notable of which being YouTube. The company is a data analytics pioneer, having used predictive metrics in Google Analytics for many years.
While we acknowledge the potential of GOOGL 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 GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
