13 Best Strong Buy AI Stocks to Invest In Now

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.

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. (NASDAQ:FLEX) 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. (NASDAQ:FLEX) 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 (NYSE:FN) 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 (NYSE:FN) 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. (NASDAQ:ALAB) 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. (NASDAQ:ALAB) 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. (NYSE:FROG)

On March 24, UBS upgraded JFrog Ltd. (NYSE: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. (NYSE:FROG) 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. (NYSE:FROG) 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. (NYSE:SNOW) 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. (NYSE:SNOW), 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. (NYSE:HUBS) 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. (NYSE:HUBS) 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.

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