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. 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. 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. 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. 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.
11. Flex Ltd. (NASDAQ:FLEX)
On March 30, Flex Ltd. (NASDAQ:FLEX) announced a definitive agreement to acquire Electrical Power Products for approximately $1.1 billion in cash, a transaction expected to be accretive to adjusted EPS within the first full fiscal year post-close. The acquisition enhances Flex’s exposure to power infrastructure markets, adding a business with anticipated revenue of approximately $323 million and a mid-to-high teens EBITDA margin profile, while also strengthening its capabilities in engineered power control systems critical for utilities, industrials, and data centers.
Previously, on March 12, Baird initiated coverage of Flex Ltd. with an Outperform rating and a $70 price target, highlighting the company’s improving growth and margin profile. The firm pointed to Flex’s power segment as particularly attractive, given its role in supporting increasing energy demands driven by AI infrastructure, and sees a clear pathway for further margin expansion as the business mix shifts toward higher-value segments.
Flex Ltd. is a diversified manufacturing partner with a growing focus on AI infrastructure, cloud computing, and power solutions. With strategic acquisitions enhancing its capabilities, strong positioning as an enabler of AI-driven energy demand, and improving financial performance, the company offers meaningful upside potential as it continues to benefit from structural growth in data center and power infrastructure markets.
10. Fabrinet (NYSE:FN)
On March 17, iPronics announced a significant expansion of its manufacturing capabilities through an enhanced partnership with Fabrinet (NYSE:FN), aimed at scaling production of silicon photonics-based optical circuit switching systems. The initiative includes the establishment of a dedicated manufacturing line expected to be fully operational in Q2 2026, supporting growing demand from hyperscalers and AI system providers for high-performance, energy-efficient interconnect solutions.
Previously, on March 3, Rosenblatt raised its price target on Fabrinet to $715 from $550 while maintaining a Buy rating, noting that increased investment by Nvidia in optical component suppliers is a positive signal for the broader ecosystem. Although Fabrinet is not a direct recipient of Nvidia’s capital, the firm emphasized that it remains a critical manufacturing partner for advanced transceivers and co-packaged optics modules, positioning it to benefit from accelerating demand for AI networking infrastructure.
Fabrinet operates as a key manufacturing partner for high-speed optical and electronic components used in AI data centers. With expanding production capacity, strong positioning within the AI optical supply chain, and increasing demand for next-generation networking solutions, the company is well-positioned to capture sustained growth, making it an attractive high-upside play on AI infrastructure expansion.
9. Astera Labs, Inc. (NASDAQ:ALAB)
On March 21, Astera Labs, Inc. (NASDAQ:ALAB) filed to sell 5.58 million shares of common stock on behalf of existing holders, a move that typically reflects strong investor demand and liquidity in the stock, enabling early stakeholders to monetize positions while maintaining market confidence in the company’s long-term growth trajectory. Such offerings are often indicative of a maturing company with significant institutional interest and do not necessarily reflect weakening fundamentals.
Previously, on March 5, Loop Capital initiated coverage of Astera Labs, Inc. with a Buy rating and a $250 price target, identifying the company as one of the most compelling pure-play AI semiconductor opportunities outside of Nvidia. The firm highlighted Astera’s differentiated connectivity solutions, which address critical bottlenecks in AI server and cluster performance, and emphasized its potential to develop durable competitive advantages through technology-driven stickiness within customer ecosystems.
Astera Labs, Inc. provides high-performance connectivity solutions essential for AI data centers, including retimers, switches, and interconnect technologies. With increasing demand for efficient data movement in AI workloads, strong analyst support, and growing recognition as a core enabler of AI infrastructure, the company is well-positioned to deliver substantial long-term growth, supporting a high-upside investment thesis.
8. JFrog Ltd. (NASDAQ:FROG)
On March 24, UBS upgraded JFrog Ltd. (NASDAQ:FROG) to Buy from Neutral with a $60 price target, citing an improved risk/reward profile following a significant pullback in the stock. The firm’s channel checks indicated stronger-than-expected demand trends and no evidence of a slowdown, suggesting that investor concerns around AI disruption may be overstated. This creates an opportunity for investors to gain exposure to a critical infrastructure provider at an attractive valuation.
On March 16, Guggenheim initiated coverage of JFrog Ltd. with a Buy rating and a $60 price target, emphasizing the company’s strategic importance as a system of record for software artifacts. As AI-generated code proliferates, the need for governance, security, and lifecycle management becomes increasingly critical, positioning JFrog as a key enabler of the AI development ecosystem. This structural tailwind supports sustained demand for its platform.
JFrog Ltd. is an AI-adjacent infrastructure company that provides essential tools for managing, securing, and deploying software artifacts. Founded in 2008 and headquartered in Sunnyvale, California, the company plays a “picks-and-shovels” role in the AI ecosystem, making it a compelling investment as enterprises scale AI-driven software development.
7. Snowflake Inc. (NYSE:SNOW)
On April 1, Benchmark initiated coverage of Snowflake Inc. (NYSE:SNOW) with a Buy rating and a $190 price target, highlighting the company’s unified AI Data Cloud platform as a critical enabler of enterprise data infrastructure. The analyst emphasized that Snowflake’s ability to securely manage and process high-quality data positions it at the center of generative AI and large language model (LLM) adoption. As a leading infrastructure play, the firm pointed to Snowflake’s strong technology leadership, high degree of AI defensibility, and a total addressable market exceeding $500 billion, alongside consistent execution and profitability metrics aligned with Rule of 50+ targets.
On March 31, Morningstar expanded the availability of its investment datasets on Snowflake Inc. Marketplace, allowing institutional users to seamlessly access premium financial data within Snowflake’s ecosystem. This development enhances the platform’s value proposition by strengthening its data network effects and reinforcing its role as a central hub for financial analytics. The integration of trusted third-party datasets further increases switching costs and deepens customer engagement, supporting long-term monetization potential and reinforcing Snowflake’s positioning as a foundational layer for AI-driven enterprise workflows.
Snowflake Inc., historically known for its cloud-based data warehousing and analytics solutions, has evolved into a comprehensive AI data platform that enables enterprises to extract greater value from their data, making it one of the best strong buy stocks to invest in now. Snowflake Inc. was founded in 2012 in San Mateo, California, and continues to expand its capabilities across AI, data sharing, and cloud-native applications, making it a compelling high-growth investment tied to the accelerating adoption of AI and data-driven decision-making.
6. HubSpot, Inc. (NYSE:HUBS)
On March 31, BofA reinstated coverage of HubSpot, Inc. (NYSE:HUBS) with a Buy rating and a $300 price target, noting that the stock’s significant decline from its 2025 highs has created an entry point for long-term investors. The analyst believes concerns around AI disruption and long-term growth visibility are already reflected in the valuation, while the company remains well positioned to reaccelerate revenue growth toward 20% in the near term, supported by product innovation and expanding customer adoption.
On March 3, Cantor Fitzgerald raised its price target on HubSpot, Inc. to $325 from $280 and maintained an Overweight rating, citing encouraging operating trends and sustained momentum across key performance metrics. The firm highlighted improving fundamentals and continued execution, suggesting that HubSpot’s growth trajectory remains durable. These developments reinforce the view that recent share price weakness may be disconnected from underlying business strength, presenting an opportunity for investors to gain exposure to a high-quality SaaS platform at a discounted valuation.
HubSpot, Inc. is increasingly viewed as an AI-powered growth platform rather than a traditional CRM provider, as it integrates artificial intelligence—particularly through its “Breeze” AI agent platform—across its marketing, sales, and service offerings. This enhances productivity and customer engagement for small and medium-sized businesses. Founded in June 2006 and headquartered in Cambridge, Massachusetts, HubSpot’s expanding AI capabilities position it to capture long-term upside as businesses adopt intelligent automation solutions.
5. Rubrik Inc. (NYSE:RBRK)
On April 2, Rubrik Inc. (NYSE:RBRK) disclosed in a regulatory filing that director Mark McLaughlin purchased approximately 10,600 shares of common stock in a transaction valued at roughly $502,000 on March 30. This insider buying activity, coupled with a positive after-hours share price reaction, signals management’s confidence in the company’s long-term prospects and may be interpreted by investors as a bullish indicator of future performance.
On March 23, Rubrik Inc. announced an integration with Microsoft (MSFT) Defender at RSAC 2026, combining Microsoft’s real-time threat detection capabilities with Rubrik’s automated identity recovery solutions. This integration enhances organizations’ ability to rapidly respond to cyberattacks by enabling faster restoration of compromised systems. By extending its capabilities into identity resilience, Rubrik strengthens its competitive positioning within the cybersecurity landscape and increases the strategic value of its platform in mission-critical enterprise environments.
Previously, on March 20, BTIG initiated coverage of Rubrik Inc. with a Buy rating and a $64 price target, citing strong secular tailwinds that are expected to support sustained revenue growth. The firm characterized Rubrik as an underappreciated AI-driven growth story, with potential for ARR growth to exceed current expectations.
Rubrik Inc. operates at the intersection of data security and artificial intelligence, focusing on cyber resilience rather than traditional perimeter defense. Its platform delivers enterprise-grade data protection, cloud security, and automated recovery solutions, positioning the company as a key beneficiary of rising cybersecurity demand in an increasingly AI-driven digital environment.
4. InterDigital, Inc. (NASDAQ:IDCC)
On April 2, InterDigital, Inc. (NASDAQ:IDCC) announced new patent licensing agreements with Buffalo Americas and a global television manufacturer, covering technologies related to Wi-Fi 5, Wi-Fi 6, and HEVC video standards. These agreements reinforce the company’s ability to monetize its intellectual property portfolio and generate recurring high-margin licensing revenue, highlighting the durability and scalability of its business model.
Previously, on February 23, InterDigital, Inc. and Turk Telekom demonstrated collaborative sensing technology using early-stage 6G architecture, integrating cellular and Wi-Fi networks to enhance sensing accuracy and coverage. This innovation underscores InterDigital’s leadership in next-generation wireless technologies and its role in shaping the evolution of 6G systems. By advancing Integrated Sensing and Communication (ISAC), the company is positioning itself at the forefront of future connectivity solutions, which could unlock new monetization opportunities over time.
InterDigital, Inc. is a research and development company specializing in wireless, video, and AI technologies, with a business model centered on licensing its extensive patent portfolio. Founded in 1972 and headquartered in Wilmington, Delaware, the company’s continued innovation in 6G and advanced communication systems supports a compelling long-term growth narrative driven by next-generation connectivity trends.
3. ServiceNow, Inc. (NYSE:NOW)
On April 1, Benchmark analyst Yi Fu Lee initiated coverage of ServiceNow, Inc. (NYSE:NOW) with a Buy rating and a $125 price target, highlighting the company’s integrated platform combining AI, data, and workflow automation. The analyst views ServiceNow as a key beneficiary of the emerging Agentic AI cycle, with strong leadership and a proven ability to deliver profitable growth, positioning it for long-term value creation, particularly following a significant pullback in the stock.
On March 31, Wells Fargo lowered its price target on ServiceNow, Inc. to $185 from $225 while maintaining an Overweight rating, noting that although Q4 results were strong, near-term catalysts may be limited. However, the firm pointed to upcoming events such as the Knowledge conference and investor day as potential drivers of renewed investor interest. This suggests that while short-term sentiment may be cautious, the underlying business momentum remains intact, supporting a constructive long-term outlook.
ServiceNow, Inc. is a leading enterprise software company focused on AI-driven workflow automation across IT, HR, and customer service functions. Through its “Now Assist” generative AI suite, the company is embedding intelligence into enterprise operations. Founded in 2004 and headquartered in Santa Clara, California, ServiceNow is well-positioned to capitalize on the growing demand for AI-powered enterprise productivity solutions.
2. Pony AI Inc. (NASDAQ:PONY)
On March 31, 2026, HSBC initiated coverage on Pony AI Inc. (NASDAQ:PONY) with a Buy rating and a $16.60 price target, reflecting a more constructive outlook on the company’s growth trajectory. The initiation signals increasing confidence in Pony AI’s ability to commercialize autonomous driving technology and scale its robotaxi operations, marking a positive shift in analyst sentiment.
On March 30, Barclays analyst Jiong Shao lowered the firm’s price target on Pony AI Inc. to $10 from $15 while maintaining an Equal Weight rating, noting that the company continues to demonstrate solid execution despite an evolving business model. While the revised target reflects near-term uncertainties, the acknowledgment of operational progress suggests that Pony AI is making tangible strides toward commercialization, supporting its long-term growth potential.
Pony AI Inc. is an autonomous driving technology company specializing in its proprietary “Virtual Driver” system for robotaxis and autonomous logistics. Founded in 2016 and operating across China and the United States, the company represents a high-growth, speculative opportunity tied to the commercialization of driverless mobility solutions and the broader AI-driven transportation revolution.
1. Marvell Technology, Inc. (NASDAQ:MRVL)
On April 2, Erste Group initiated coverage of Marvell Technology, Inc. (NASDAQ:MRVL) with a Buy rating, citing strong financial performance and improving return metrics, including a doubling of net profit over the past five quarters and return on equity reaching 19%. The firm expects continued revenue and earnings growth, supported by Marvell’s leadership in high-performance analog and optical DSP technologies and its strategic positioning within the AI semiconductor ecosystem.
On March 31, Nvidia (NVDA) and Marvell Technology, Inc. announced a broad strategic partnership centered on integrating Marvell’s solutions into Nvidia’s AI infrastructure ecosystem through NVLink Fusion, alongside a $2 billion equity investment by Nvidia. The collaboration spans custom silicon, networking, and optical technologies, enabling customers to develop scalable, high-performance AI systems. Additional analyst commentary characterized the investment as a strong endorsement of Marvell’s capabilities, with expectations for sustained growth driven by increasing adoption across hyperscale customers.
Marvell Technology, Inc. is a leading semiconductor company specializing in data infrastructure, including custom AI processors, optical networking, and connectivity solutions. With deep integration into Nvidia’s expanding AI ecosystem, strong financial momentum, and growing demand from hyperscale customers, Marvell is positioned as a key beneficiary of AI infrastructure buildout, offering significant upside potential as adoption accelerates.
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