In this article, we will discuss 13 Best Strong Buy AI Stocks to Invest In Now.
Hedge fund managers are increasingly allocating capital to AI-related stocks, viewing the sector not as a speculative trend but as a core driver of global earnings growth and long-term equity performance. With a significant portion of recent S&P 500 earnings expansion tied to AI infrastructure, many funds consider it essential exposure rather than an optional thematic bet. The conviction stems from the tangible impact AI is already having on corporate profitability, particularly across hardware, cloud computing, and digital infrastructure, where companies are delivering strong and measurable earnings growth.
Prominent investors have expressed high confidence in the space. Bill Ackman has maintained a concentrated approach, at times allocating a substantial share of his portfolio to a small number of AI-driven companies, reflecting deep conviction in their long-term growth potential. Similarly, Stanley Druckenmiller has highlighted opportunities not only in core AI leaders but also in adjacent hardware and infrastructure plays that benefit from the broader ecosystem. Meanwhile, Philippe Laffont has emphasized investment in AI infrastructure beyond semiconductors, including power and energy suppliers required to support large-scale data centers.
Beyond direct investments, hedge funds are also integrating AI into their own research processes. Divya Nettimi has noted that AI tools and agents can dramatically increase analyst productivity, enabling broader market coverage and faster data analysis. These technologies allow managers to process vast datasets—such as filings, earnings transcripts, and alternative data—more efficiently, improving decision-making and enhancing alpha generation.
Overall, hedge fund sentiment reflects a structural view of AI as a foundational technology that will shape markets for years to come. While valuations and volatility remain considerations, managers broadly agree that maintaining exposure to AI is critical to capturing future growth and staying aligned with the evolving drivers of global equity returns.
With this context in mind, here is a list of 13 best strong buy stocks to invest in now.
Our Methodology
For this list, we screened for AI stocks with positive analyst sentiment and identified stocks with consensus Strong Buy ratings. These companies are also popular among hedge funds. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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).
13 Best Strong Buy AI Stocks to Invest In Now
13. Datadog, Inc. (NASDAQ:DDOG)
On April 1, Benchmark initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy rating and a $150 price target, highlighting the company’s AI-powered, unified observability and security platform as a key beneficiary of ongoing digital transformation, cloud migration, and the rise of agentic AI. The firm identified Datadog as a leading infrastructure software play, citing its strong technological leadership, high defensibility in AI-driven environments, a total addressable market exceeding $400 billion, and a track record of consistent profitable growth supported by beat-and-raise execution and Rule of 45+ performance metrics.
Previously, on March 9, Datadog, Inc. (NASDAQ:DDOG) announced the general availability of its MCP Server, which enables developers to integrate real-time observability data directly into AI-driven development workflows. The platform allows teams to debug and operate systems using live telemetry within AI coding environments while maintaining governance and security controls. Management emphasized that this innovation represents a shift toward AI systems operating directly on production environments, enhancing efficiency and enabling more advanced AI-native development capabilities.
Datadog, Inc. (NASDAQ:DDOG) is a cloud observability and monitoring platform that plays a critical role in managing AI and cloud-based workloads. With increasing adoption driven by the proliferation of AI applications and large language models, alongside continuous product innovation that embeds real-time intelligence into development workflows, the company is well-positioned to sustain high growth and expand its market leadership, making it a compelling high-upside investment opportunity.
12. Celestica Inc. (NYSE:CLS)
On April 1, Susquehanna initiated coverage of Celestica Inc. (NYSE:CLS) with a Positive rating and a $375 price target, reflecting confidence in the company’s positioning within the rapidly expanding AI infrastructure ecosystem. The initiation underscores growing recognition of Celestica’s role in enabling next-generation data center and networking solutions.
Previously, on March 25, Celestica Inc. (NYSE:CLS) announced a leadership transition in which Michael Wilson will step down as board chair ahead of the May 19 annual meeting, with CEO Rob Mionis set to assume the role. The company also appointed Laurette Koellner as lead independent director and added David Reeder to the board. These governance updates signal a continued focus on strategic execution and alignment as Celestica scales its operations within high-growth markets such as AI infrastructure and cloud computing.
Celestica Inc. (NYSE:CLS) has evolved into a key provider of AI hardware infrastructure, offering high-performance networking, compute, and storage solutions for data centers. With increasing exposure to AI-driven demand, a strengthened leadership structure, and growing recognition from analysts, the company is well-positioned to capitalize on long-term secular growth trends in AI and cloud infrastructure, supporting a strong upside investment case.
