In this article, we will explore the 12 Best Mid-Cap AI Stocks to Buy According to Analysts.
AI stocks continue to take all the limelight in the stock market, with some doubling in the span of just over a month. For many, this sounds like a bubble, and we may agree. However, the AI infrastructure buildout isn’t stopping anytime soon. It is a race that all companies want to win at all costs, and spending is therefore not a major issue for them right now. This ambition continues to provide earnings growth and, as a result, stock price appreciation for many companies.
This sentiment was also reflected by some notable business leaders in the US recently. For example, in an interview with Caroline Woods of TheStreet, fund manager Bill Ackman discussed whether AI was a bubble or a boom. His one-word response was ‘Boom’. He also said:
“We have a massive AI infrastructure buildout… and then AI itself is this very powerful productivity force. Every company today is trying to figure out how to use AI to enhance their business and so there’s a very large… You know, enormous tailwind.”
The CEOs of two major AI model companies also had a similar opinion a few months back. Sam Altman of OpenAI talked about the fast pace of growth when he said his company will have extremely powerful AI models soon. He said the takeoff will be faster than he had originally thought. Anthropic’s leadership has also been pretty vocal about the scale and importance of AI.
This fast-paced infrastructure development is generating a lot of growth among US companies, so we decided to take a look at the 12 best mid-cap AI stocks to buy according to analysts who are significantly benefiting from the AI buildout.
Our Methodology
To identify the 12 best mid-cap AI stocks to buy according to analysts, we compiled a list of stocks from various AI-themed ETFs. We then filtered for stocks with market caps between $2 and $20 billion. We then considered their potential upside according to Wall Street analysts and ranked them in ascending order of their upside.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Note: All share price data in the article is as per market close on June 5.
12. Applied Optoelectronics Inc (NASDAQ:AAOI)
Potential Upside: 4.52%
Applied Optoelectronics Inc (NASDAQ:AAOI) is primarily a fiber-optic networking company. While current analyst sentiment has mostly been priced in, the company’s technology, which could become mainstream once data centers move away from copper towards photonics, makes it a major AI beneficiary in the medium term. This is why, despite the limited upside, it has made our list of the best mid-cap AI stocks to buy according to analysts.
The firm receives limited analyst coverage and may therefore go under the radar. After its earnings report on May 7, several analysts updated their price targets, with Rosenblatt Securities’ $220 target the highest, implying 24% upside from here.
On May 14, Applied Optoelectronics Inc. entered into an Equity Distribution Agreement that would allow the company to issue and sell up to $600 million of its common shares. The money raised from this will be used for corporate purposes like working capital, capital expenditures, and debt repayment. The company has the right to suspend or terminate the program at any time.
The stock is up 300% this year, and it all started with the large order for the 800G single-mode data center transceivers earlier in the year. The company also released its 400-miliwatt narrow-line-width pump laser. This helps transmit data at extreme speeds within the AI data center. While the stock has delivered impressive returns so far this year, the company still has to execute. The Equity Distribution Agreement will go a long way in helping the company stay on course with its ambitious targets.
Applied Optoelectronics Inc manufactures advanced fiber-optic networking products. While the company was considered a niche component supplier before the AI boom, it is now an integral part of AI data centers, helping develop data centers of the future where data can travel at high speeds through light.
11. UiPath Inc. (NYSE:PATH)
Potential Upside: 15.7%
Raimo Lenschow from Barclays reaffirmed a Hold rating on UiPath Inc. (NYSE:PATH), along with the price target of $14 on June 1. The firm’s price target reflects an additional 33% upside from the current levels. This upside aligns with the median Wall Street analyst estimate of 15.7%, based on coverage from 23 analysts.
UiPath Inc. reported its first-quarter fiscal 2027 earnings on May 29, posting revenue of $418 million. Annual Recurring Revenue ARR for the quarter came in at $1.901 billion. On the profitability side, GAAP operating income reached $28 million, with non-GAAP operating income of $92 million. Adjusted free cash flow totaled $130 million.
CFO Ashim Gupta highlighted:
During the first quarter, we repurchased 20 million shares at an average price of $11.47 and repurchased an additional 2 million shares at an average price of $9.63 through May 27, 2026.
Going forward, the company expects the second-quarter revenue to range from $395 million to $400 million. In addition, ARR is expected to be between $1.929 billion and $1.934 billion. Non-GAAP operating income is estimated at approximately $75 million.
UiPath Inc. is a software infrastructure company that provides a range of robotic process automation (RPA) solutions. The company’s primary offering includes its UiPath platform.
10. Hut 8 Corp. (NASDAQ:HUT)
Potential Upside: 15.8%
Hut 8 Corp. (NASDAQ:HUT) started June with a positive update. On June 1, Keefe Bruyette reaffirmed its Outperform rating on the stock and raised its price target. The firm raised its price target on the shares from $89 to $138. According to the analyst, the company’s current valuation already reflects much of the value from its leased data center capacity that is still under development. However, further upside is still expected. This comes from its wider pipeline of power assets and expansion opportunities. These developments could support additional share price gains over the next 12 months.
Earlier, on May 14, Jefferies initiated coverage of Hut 8 Corp. with a Buy rating and a price target of $156. The firm started coverage of four AI data center developers, all of which have roots in the Bitcoin mining industry. According to the analyst, demand for AI data centers remains strong, while access to power continues to be the biggest concern for the industry. Jefferies also pointed to the company’s lease agreement with Fluidstack as a key strength.
Analysts led by Jonathan Petersen commented:
We view HUT as one of the most well-positioned of the new entrants, with highly favorable deals and a proven ability to meet hyperscaler specifications.
Hut 8 Corp. is an energy and digital infrastructure company operating across the United States and Canada. The company operates through four business segments: Digital Infrastructure, Power, Compute, and Others.
9. Core Scientific, Inc. (NASDAQ:CORZ)
Potential Upside: 16%
Bernstein analyst Gautam Chhugani increased the firm’s price target on Core Scientific, Inc. (NASDAQ:CORZ) from $24 to $32 and reaffirmed an Outperform rating on June 3. The price target revision follows an update to the firm’s valuation methodology. Instead of primarily valuing the company based on its Bitcoin mining operations, Bernstein is now assigning greater value to its AI infrastructure business as opposed to the previous Bitcoin mining business, especially as cryptocurrency sentiment is taking a hit.
A similar update came from Nick Giles of B. Riley on May 27, who revised his price target to $33 from $30. The reason wasn’t much different on that occasion either. The firm believes the speed at which the company is winning contracts from hyperscalers is impressive. The firm updated the price target after updating its models with these recent contracts, as well as the quarterly results. Both these analyst updates confirm CORZ’s status as a rising mid-cap AI stock.
Core Scientific, Inc. operates digital Bitcoin mining and high-performance computing infrastructure. The company leverages its own fleet of computers, called miners, to earn Bitcoin for its own account and also provides hosting services for Bitcoin mining and high-performance computing customers at US-based operational data centers.
8. Modine Manufacturing Company (NYSE:MOD)
Potential Upside: 23.1%
Following its earnings report and announcement of a $4 billion long-term agreement with a data center customer, UBS raised its price target on Modine Manufacturing Company (NYSE:MOD). The firm increased its price target on MOD from $310 to $355 while maintaining a Buy rating on May 28. The upwardly revised price target reflects an additional 28% upside from the current levels.
The analyst believes consensus estimates for the company could move higher in the coming periods as it continues to deliver positive updates. He also highlighted that the stock’s valuation remains attractive. Based on these factors, the analyst expects the stock to have additional upside potential.
Modine Manufacturing Company released its fourth-quarter fiscal 2026 earnings report on May 27. Supported by a 29% rise in gross profit, Q4 sales grew 47%. On the balance sheet side, the company ended the fiscal year with net debt of $363 million and a leverage ratio of 0.8x. For the full year, capital expenditures reached $143 million, with some data center-related spending expected to shift into the next fiscal year.
Modine Manufacturing Company operates as a manufacturer, engineer, designer, tester, and seller of mission-critical thermal solutions. The company’s product portfolio includes heat transfer products, data center products, powertrain cooling products, and coatings products & application services. It was founded in 1916 and is based in Racine, Wisconsin.
7. Cognex Corp. (NASDAQ:CGNX)
Potential Upside: 24.1%
On May 26, JPMorgan analyst Tomohiko Sano upgraded Cognex Corp. (NASDAQ:CGNX) from Neutral to Overweight. He also raised the firm’s price target on the stock from $65 to $75. The firm’s adjusted price target offers a further 23% upside from the current levels. It highlighted the company’s continued innovation in AI-powered solutions, which are helping it reach more customers and broaden its market opportunities.
According to the analyst, CGNX is entering a new growth phase driven by its AI-enabled vision technology and expanding its presence across a broader range of end markets. In addition, the company’s ongoing sales model transformation is improving its market reach and is expected to help double its customer base over time.
Cognex Corp. posted its first-quarter FY26 results on May 7, reporting 21% year-over-year revenue growth. Supported by a favorable product mix and higher sales volume, adjusted gross margin improved 420 basis points to 71.8%. However, these gains were partially offset by tariff-related costs. Adjusted EBITDA doubled from the previous year, coming in at $72 million. During the quarter, the company returned $113 million to shareholders. This included $99 million in share buybacks.
Cognex Corp. sells machine vision devices that automate production and distribution activities by capturing and analyzing visual data. Its portfolio includes software for advanced programming, technology for developing vision applications, and an image-based barcode reader.
6. Cipher Digital Inc. (NASDAQ:CIFR)
Potential Upside: 33.6%
While Cipher Digital Inc. (NASDAQ:CIFR) received a downward price target revision from Morgan Stanley recently, the stock’s prospects are still healthy for an AI trade. Stephen Byrd of Morgan Stanley brought his price target down to $48.5 from $53.5.
The most recent significant upward revision came on May 6, when H.C. Wainwright raised its price target on Cipher Digital Inc. to $30 from $25 and maintained a Buy rating on the stock. This bullish price target came after the company announced its Q1 2026 earnings report.
The quarterly report came out on May 5. The company reported a revenue of $34.84 million, a sequential decline from $60 million in Q4 2025. The earnings per share came in at -$0.28, falling short of Wall Street estimates by 21.74%.
Looking ahead, the mining company expects revenue to grow later in 2026, driven by construction milestones, lease conversions, and pipeline contracting. The company estimates earnings per share improvements, with forecasts reaching $0.36 by Q1 2027.
Cipher Digital Inc. runs large data centers for high-performance computing (HPC) workloads. Originally a Bitcoin mining company, it has since February 2026 shifted its focus to using its infrastructure to meet demand for artificial intelligence and HPC. It was founded in 2021 and is based in New York.
5. FormFactor Inc (NASDAQ:FORM)
Potential Upside: 37.1%
The most recent analyst activity in FormFactor Inc (NASDAQ:FORM) comes from Evercore ISI’s Vedvati Shrotre, who assigned a $155 price target to the stock, suggesting 33% upside, consistent with the median analyst upside estimate. Prior to that, on May 12, Craig Ellis of B. Riley Securities revised his price target upward on FormFactor Inc shares from $145 to $165.
The main reason for Craig Ellis’ positive stance on the company is the guidance provided on the May 11 Investor’s Day presentation. Management outlined its 2030 financial targets, which included 55% non-GAAP margins, operating expenses at 23% of revenue, and a non-GAAP EPS of $5. The growth is expected to come from high-bandwidth memory applications, high-performance computing, advanced packaging, and co-packaged optics. Moreover, the Framers Branch expansion is likely to drive higher margins and help the company gain market share.
The Investor Day also prompted other analysts to revisit their financial models, with Craig-Hallum upgrading the stock to Buy from its prior Hold rating and maintaining a price target of $175. This is also the highest target on Wall Street, as per estimates from 10 different analysts.
FormFactor Inc primarily offers semiconductor testing equipment and operates through two segments: Probe Cards and Systems. The probe cards are used to test various semiconductor processors and systems-on-chip products. The Systems segment designs the hardware platforms that are used to test these semiconductor devices. The company is based in Livermore, Canada.
4. Tempus AI Inc (NASDAQ:TEM)
Potential Upside: 37.8%
On May 29, Tempus AI Inc (NASDAQ:TEM) announced that it had received FDA approval for a tumor-only indication for its xT CDx sequencing platform. This makes the company the only laboratory to have both tumor-only and tumor-normal comprehensive genomic profiling approvals. This also builds on the company’s solid foundation in leveraging artificial intelligence. The firm sits on over 500 petabytes of data from over 45 million patients.
Tempus AI’s technology now has the ability to identify when a patient receiving a standard drug is expected to do poorly. This will not only help drug companies design smarter clinical trials but also help doctors take better treatment decisions as early as possible. The company’s stock has lost one-fifth of its value in a month, which is understandable, given that most analysts lowered their price targets in May. However, with the success of its sequencing platform, further revisions could come in the short-term, prompting a rally in the stock, which is already up 8% in the last five trading days.
Tempus AI Inc. is a healthcare technology company that uses artificial intelligence to advance precision medicine. It achieves this through its massive libraries of clinical and genomic data. Pharmaceutical companies use their products to improve drug discovery processes while physicians use them to personalize treatments for their patients. The firm is based in Chicago, United States.
3. Onto Innovation Inc. (NYSE:ONTO)
Potential Upside: 38.2%
Onto Innovation Inc. (NYSE:ONTO) has seen some bullish analyst activity recently, with Craig Ellis of B. Riley Securities revising his target price upward from $330 to $365. This is in continuation of the general trend since the May 5 earnings report. Following the company’s solid earnings, Edward Yang of Oppenheimer reiterated his bullish stance and raised the firm’s price target on the stock from $350 to $370. According to the firm, the company had already given stronger-than-expected guidance for Q1 and Q2, so a big earnings beat surprised analysts.
The AI tailwind continues to help the company with its growth ambitions. Jeffries, which also came out with a similar upgrade post-earnings, said the company’s core business in HBM and CoWoS is continuing to improve. Moreover, it added that new growth opportunities are starting to add up over time.
Onto Innovation Inc. posted its Q1 fiscal 2026 earnings on May 5, in line with the market expectations. Revenue for the quarter came in at $292 million, representing around 10% sequential increase. Looking ahead, second-quarter revenue is expected to range between $320 million and $330 million. This guidance suggests that full-year 2026 revenue could exceed $1.3 billion.
Onto Innovation Inc. is involved in the manufacturing, development, design, and support of process control tools used in semiconductor production. Its product offerings include lithography systems and process control analytical software & automated and integrated metrology systems.
2. Dlocal Ltd. (NASDAQ:DLO)
Potential Upside: 60.1%
On May 27, Truist lowered its price target on Dlocal Ltd. (NASDAQ:DLO) stock from $16 to $15. Despite the downward revision, the stock’s YTD performance of -20% meant that there is considerable upside based on previously assigned target prices. The median analyst upside of 60.1% is quite attractive. Dlocal does not have a core AI product. However, it stands to benefit from AI implementation in its business through fraud detection and reduction, optimized transaction routing, and automating money-laundering frameworks, making it an interesting AI play.
The main reason for Truist’s pessimism in the most recent update is operating expense, which the firm believes will take time to come down, possibly by the end of 2026. Other than that, gross profits are expected to go up in the low single-digit range, aided by strong volumetric growth but offset by operating expenses. This growth was visible in the first quarter’s results, when the company posted a revenue of $335.86 million, comfortably beating consensus estimates by $4.67 million.
DLocal Limited is a financial technology company that provides a cross-border payment processing platform, allowing global merchants to accept payments and make payouts in emerging markets. Using one API and contract, it connects businesses with over 900 local payment methods across 40+ countries in Latin America, Asia, and Africa.
1. SoundHound AI Inc. (NASDAQ:SOUN)
Potential Upside: 83%
SoundHound AI Inc. (NASDAQ:SOUN) is a stock that has significantly underperformed during the AI rally over the last 12 months. Even though analysts have a median upside of 83% on the stock, its performance has been choppy and is currently among the most shorted stocks on Wall Street. This negativity brings with it an opportunity that makes the stock one of the best mid-cap AI stocks to buy, according to analysts.
The company’s most recent earnings report on May 7 showed a glimpse of the potential that is driving this analyst optimism. It registered a topline growth of more than 50%, with the automotive and IoT AI business up over 88% YoY. The firm is planning its resurgence around the agentic AI theme, with the announcement of OASYS prior to the earnings, a platform where AI builds AI, helping the company achieve its mission of delivering a single agentic AI ecosystem.
The management was asked about the sustainability of its growth through an acquisition strategy, and CEO Keyvan Mohajer reiterated that revenue growth and cost synergies will deliver the expected return on investment in the short term. The most recent acquisition of LivePerson, a digital customer service platform, is expected to close in the second half of the year. While the market may not yet have priced in the positive impact of these acquisitions, analysts are certainly the most bullish on the company’s prospects over the next twelve months.
SoundHound AI Inc. is a voice artificial intelligence company offering voice AI solutions to businesses. It is based in Santa Clara, California.
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