In this article, we will discuss: 15 Best AI Stocks to Buy and Hold for the Next 5 Years.

On July 9, CNBC reported that OpenAI CEO Sam Altman said the company’s new GPT-5.6 Sol model achieves 54% higher token efficiency on agentic coding jobs than previous models while performing “as good or better” than competing systems. Altman noted that OpenAI generally released GPT-5.6 Sol, Terra, and Luna after first limiting the launch to a select list of trusted partners at the request of the United States government. “Every enterprise now is thinking about spending and the value they’re getting in exchange for AI,” Altman told CNBC, stressing the need for efficiency.

Altman stated that OpenAI worked with Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and National Cyber Director Sean Cairncross before its release, describing the process as “collaborative back and forth” with government testing and input, per CNBC. He also stated, “Everybody will have access,” but declined to disclose whether OpenAI plans an initial public offering this year.

With that said, here are the 15 Best AI Stocks to Buy and Hold for the Next 5 Years.

Methodology:

We used the Finviz screener to identify AI stocks expected to deliver over 20% annual earnings growth over the next 5 years. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. We then identified those with the highest number of hedge fund holders, which we assessed using Insider Monkey’s database of hedge funds as of Q1 2026. The stocks are ranked in ascending order of the number of hedge fund holders.

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).

15. Samsara Inc. (NYSE:IOT)

Number of Hedge Fund Holders: 45

Samsara Inc. (NYSE:IOT) is among the Best AI Stocks. 

On June 25, Samsara Inc. (NYSE:IOT) used its Beyond 2026 conference to launch new AI capabilities across fleet safety, maintenance, and shipment tracking. Co-founder and CEO Sanjit Biswas told around 4,000 attendees that rising fuel, equipment, and maintenance costs have become customers’ biggest challenges. He described an “Age of Intelligence” in which artificial intelligence moves beyond analysis to automate routine work.

Chief Product Officer Johan Land said customers prevented more than 380,000 accidents last year. He introduced Bird’s Eye View, Rear Collision Warning, 360 Camera, AI Ride-Alongs, and Coaching Priority.

Biswas also showed AI tools that decode engine fault codes, estimate repair costs, verify warranty coverage, draft work orders, and identify similar faults across fleets before launching Agent Studio, a no-code AI platform.

David Gal, vice president of Connected Equipment, introduced the disposable Tracking Label. DCL Logistics President Dave Tu said one shipment received about 200 Samsara Inc. (NYSE:IOT) tracking updates compared with roughly five barcode scans.

Samsara Inc. (NYSE:IOT) develops internet-connected sensor systems. It combines plug-and-play sensors, wireless connectivity, and cloud-hosted software integrated for deployment.

14. Arm Holdings plc (NASDAQ:ARM)

Number of Hedge Fund Holders: 46

On June 2, Arm Holdings plc (NASDAQ:ARM) CEO Rene Haas told Reuters that the US would struggle to ban exports of AI-capable CPUs to China. This is because the chips serve a broad range of computing workloads and lack the clear performance thresholds used to regulate AI GPUs. Haas said, “They would have to limit everything,” and noted that CPUs are harder to restrict than artificial intelligence accelerators.

Haas also told Reuters that demand for the company’s AGI CPU has strengthened over the past two months as AI inference workloads gain momentum. He said ByteDance and Oracle have started using the chip.

Arm Holdings plc (NASDAQ:ARM) doubled its demand outlook to $2 billion across fiscal 2027 and 2028. The corporation expects the product to produce $15 billion in annual revenue in about five years. Haas added that Arm is working with TSMC, Socionext, and customers, including Oracle and Microsoft, to secure wafer, packaging, and memory supplies for the AGI CPU.

Arm Holdings plc (NASDAQ:ARM) is involved in the licensing, marketing, research, and development of microprocessors, system IP, graphics processing units, physical IP, and associated systems IP, software, and tools. It operates in the United Kingdom, the United States, and other countries.

13. Entegris, Inc. (NASDAQ:ENTG)

Number of Hedge Fund Holders: 47

Entegris, Inc. (NASDAQ:ENTG) is among the Best AI Stocks. 

On July 6, Deutsche Bank analyst Melissa Weathers raised her price target on Entegris, Inc. (NASDAQ:ENTG) to $155 from $145. She maintained a “Hold” rating on the shares. In an investor note, the analyst noted the firm increased estimates on cycle improvement but believes the “goodness” is “already priced in.”

The same day, BMO Capital analyst Bhavesh Lodaya lifted his target on Entegris, Inc. (NASDAQ:ENTG) to $167 from $153. The analyst reiterated an “Outperform” rating on the stock. The firm noted stronger electronics and aerospace markets despite softer housing and automotive demand. The analyst expects companies to remain conservative in their outlooks.

Earlier, on July 1, Mizuho analyst John Roberts raised his price target on Entegris, Inc. (NASDAQ:ENTG) to $200 from $180. He maintained an Outperform rating on the stock. Roberts said lower oil prices have reduced the expected natural gas cost advantage for many basic chemical companies. Continued downstream investment in advanced compute should extend the strength of technology materials, the firm noted.

Entegris, Inc. (NASDAQ:ENTG) develops, manufactures, and supplies specialty materials for the microelectronics industry. It works through the Materials Solutions and Advanced Purity Solutions segments.

12. GDS Holdings Limited (NASDAQ:GDS)

Number of Hedge Fund Holders: 51

On June 9, Bloomberg reported shares of GDS Holdings Limited (NASDAQ:GDS) soared after China is preparing to invest about 2 trillion yuan ($295 billion) over the next five years to build data centers nationwide. GDS Holdings Limited (NASDAQ:GDS) American depository receipts rose about 7% following the report.

According to Bloomberg, government agencies, including the National Development and Reform Commission, are drafting a blueprint for a nationwide network of interconnected computing hubs. State-owned China Mobile and China Telecom would operate most of the facilities.

Bloomberg reported the plan would rely on local suppliers for at least 80% of the technology. Funding is expected to come mainly from sovereign debt, state investment funds, bank loans, and private capital. The blueprint remains in early discussions and could change, but it is planning to connect scattered data facilities into a unified network by 2028. It will grow access to high-performance computing and support China’s broader AI ambitions.

GDS Holdings Limited (NASDAQ:GDS) develops and operates data centers in China. It builds, operates, and transfers data centers at other locations.

11. Astera Labs, Inc. (NASDAQ:ALAB)

Number of Hedge Fund Holders: 53

Astera Labs, Inc. (NASDAQ:ALAB) is among the Best AI Stocks. 

On June 29, UBS raised its price target on Astera Labs, Inc. (NASDAQ:ALAB) to $400 from $205. The firm maintained a Neutral rating on the stock.

Earlier, on June 3, Astera Labs, Inc. (NASDAQ:ALAB) announced an expansion of its Taiwan operations and Cloud-Scale Interop Lab. It is strengthening collaboration with AI platform providers AMD, Arm, Intel, and NVIDIA alongside Taiwan-based manufacturers including GIGABYTE, Ingrasys, Inventec, Quanta Cloud Technology, and Wiwynn.

The company said the expanded footprint will speed up system validation, shorten debugging and qualification cycles, and speed deployment of rack-scale AI infrastructure.

Campbell Kan, Astera Labs’ vice president of Asia Sales and Taiwan general manager, said, “Taiwan is where the global AI supply chain gets built, and the programs driving the most ambitious AI buildouts run through this ecosystem.” He noted the expansion will help customers move “from qualification to deployment” faster as AI infrastructure demand grows.

Astera Labs, Inc. (NASDAQ:ALAB) provides rack-scale AI infrastructure through purpose-built connectivity solutions. The company has activity solutions designed to address bandwidth, latency, and reliability challenges in AI and cloud data centers.

10. Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Hedge Fund Holders: 58

On June 17, Hewlett Packard Enterprise Company (NYSE:HPE) CEO Antonio Neri told CNBC that quantum computing has “tremendous potential.” He announced a Quantum Scaling Alliance with six quantum technology companies to speed up commercial use.

Neri said the program plans to help customers develop quantum applications now by combining networking, software, and existing quantum technologies rather than waiting for more advanced qubit capacity.

Neri also said enterprise AI adoption has grown over the past six to nine months, with organizations placing more agentic workflows. “We see an acceleration of adoption of AI in the enterprise,” he said, and Hewlett Packard Enterprise Company (NYSE:HPE) has identified more than 1,200 AI use cases, with 250 already in production.

Neri argued that value comes from orchestrating multiple AI agents rather than relying on individual models. He said, “I actually believe that the future will be dictated not only by the workforce of humans, but the workforce of agents.”

Hewlett Packard Enterprise Company (NYSE:HPE) is a global edge-to-cloud firm. It provides information technology, technology, and enterprise products, solutions, and services.

9. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 72

Dell Technologies Inc. (NYSE:DELL) is among the Best AI Stocks. 

On July 6, CNBC reported that Dell Technologies Inc. (NYSE:DELL) shares climbed more than 7% after President Donald Trump promoted the company from the White House following the first joint opening-bell ceremony with the New York Stock Exchange and Nasdaq. Trump said, “Go out and buy a Dell computer,” as he praised Michael and Susan Dell, who pledged more than $6 billion to support the newly launched Trump Accounts program.

CNBC said the event marked the official launch of the tax-advantaged investment accounts for US children and featured executives and officials. It included Michael Dell, Brad Gerstner, Treasury Secretary Scott Bessent, and Sen. Ted Cruz. CNBC reported that Trump has actively traded Dell Technologies Inc. (NYSE:DELL) shares, and he disclosed, “We’re going to get him that money back one way or the other — and then I’ll ask for another $6 billion.”

CNBC also reported that several major companies pledged to match the government’s contributions for employees’ children.

Dell Technologies Inc. (NYSE:DELL) is a technology company. It operates the Infrastructure Solutions Group and Client Solutions Group segments.

8. Ciena Corporation (NYSE:CIEN)

Number of Hedge Fund Holders: 73

On June 4, Ciena Corporation (NYSE:CIEN) CEO Gary Smith told Bloomberg Open Interest that growing artificial intelligence networking demand differs fundamentally from the dot-com era. He commented that the company is benefiting from expanding AI infrastructure investment and growing enterprise adoption.

Smith revealed Ciena Corporation (NYSE:CIEN) has delivered a fourfold year-over-year growth in profitability and generated significant operating leverage. He noted that the corporation holds an “enormous backlog” that it expects to ship through 2027 and beyond, supporting future earnings. Smith said, “We’ve demonstrated it over the last eighteen months. We have an enormous backlog that we’re confident will ship out in 2027 and beyond, and we’re dropping that to the bottom line.” He also described the network technology firm as “the only focused optical systems player in the world.” The CEO credited the firm’s technology, customer relationships, and operating model for allowing the company to convert backlog into profitability.

Ciena Corporation (NYSE:CIEN) is a network technology company. It functions through Networking Platforms, Platform Software and Services, Blue Planet Automation Software and Services, and Global Services segments.

7. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Number of Hedge Fund Holders: 79

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is among the Best AI Stocks. 

On July 7, UBS raised its price target on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) to $235 from $198. The firm is bullish on the stock and maintains a Buy rating.

On June 30, CNBC reported that CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and Palo Alto Networks posted their strongest quarter on record. Shares surged by 95% and 113%, respectively, between April and June as increasingly sophisticated artificial intelligence threats sparked demand for cybersecurity.

CrowdStrike CEO George Kurtz told analysts, “What the Mythos moment proved is that the world, starting from the frontier AI labs themselves, realized that AI needs a cybersecurity ecosystem. This was a Mythos inflection point.”

CNBC said the companies became early partners in Anthropic’s Project Glasswing and OpenAI’s Daybreak initiatives. TD Cowen analyst Shaul Eyal commented, “They’re the best positioned to continue to gain market share from a product perspective. They have all the necessary ingredients.”

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cybersecurity solutions in the United States and internationally. It provides cloud-delivered protection of endpoints, cloud workloads, identity, and data through a software-as-a-service subscription-based model.

6.  Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 112

On July 2, HSBC doubled its price target on Intel Corporation (NASDAQ:INTC) to $200 from $100. The firm retained a Buy rating on the stock.

HSBC said the foundry business is now “too good to ignore.” The firm noted server CPU growth remains the tech company’s primary earnings driver in 2026 and 2027, but now includes the foundry unit in its “sum-of-the-parts” valuation. It expects foundry engagements to begin materializing in the second half of 2026.

Earlier, on June 4, Reuters reported that Intel Corporation (NASDAQ:INTC) and Foxconn agreed to jointly develop next-generation AI infrastructure and intelligent computing platforms. It will combine Intel’s chip technology with Foxconn’s manufacturing and system integration capabilities. The companies plan to make AI data center equipment, including Intel Xeon-powered server racks and AI accelerator systems. The firm will also advance high-speed interconnects, cooling technologies, and energy-efficient designs.

Foxconn Chairman and CEO Young Liu said, “Our collaboration with Intel will combine the strengths of both companies across computing platforms, system integration, and global supply chain capabilities.”

Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells computer goods and technologies. It provides computing, networking, data storage, and communication platforms. The company works in the Client Computing Group, Data Center and AI, Intel Foundry Services, and All Other segments.

5. Coherent Corp. (NYSE:COHR)

Number of Hedge Fund Holders: 114

Coherent Corp. (NYSE:COHR) is among the Best AI Stocks. 

On June 22, JPMorgan reiterated its Overweight rating after hosting meetings with Coherent Corp. (NYSE:COHR) management. The firm reported that the company described aggregate datacom pricing as healthy, with demand continuing to outpace supply and adoption cycles remaining compressed.

JPMorgan reported that the company’s management is on track with rolling out its new “co-packaged optics” technology. The firm still expects to start making significant money from this technology in the second half of 2026 as customers begin using it on a larger scale. Revenue is expected to grow even further in the second half of 2027 as customers fully expand their systems. The firm also mentioned that this timeline might move faster than expected.

On June 2, Raymond James raised its price target on Coherent Corp. (NYSE:COHR) to $435 from $371. The firm maintained a “Strong Buy” rating on the stock. In a note, the firm stated the company is in a great position across artificial intelligence data center interconnect architectures. The firm said Coherent’s broad optical technology portfolio and intellectual property remain underappreciated, with more upside possible from both transceiver and non-transceiver sales.

Coherent Corp. (NYSE:COHR) produces, refines, manufactures, and markets engineered materials, optoelectronic components and devices, and lasers for the industrial, communications, electronics, and instrumentation markets. It works through networking, materials, and laser areas.

4. ASML Holding N.V. (NASDAQ:ASML) 

Number of Hedge Fund Holders: 133

On July 6, Reuters reported that ASML Holding N.V. (NASDAQ:ASML) remains at the center of semiconductor trade tensions as Dutch Trade Minister Sjoerd Sjoerdsma begins a three-day trade mission to China.

Reuters said Sjoerdsma recently traveled to Washington. He discussed proposed US legislation that could further tighten restrictions on chipmaking equipment sales and servicing for China, potentially affecting the lithography giant’s business.

Reuters also noted Sjoerdsma will meet Chinese Commerce Minister Wang Wentao for talks on economic issues and bilateral relations. The Dutch minister said, “Over the past few decades, we’ve built robust trade ties with China, and our goal with this visit is to further strengthen our bilateral trade relationship.” He also commented, “Raising points of concern is part of that.”

Reuters disclosed that Dutch officials still argue export controls should be coordinated internationally rather than imposed unilaterally in ways that disproportionately affect Dutch companies.

ASML Holding N.V. (NASDAQ:ASML) develops, produces, markets, sells, upgrades, and services advanced semiconductor equipment systems. It includes lithography, metrology, and inspection systems.

3. Advanced Micro Devices, Inc. (NASDAQ:AMD) 

Number of Hedge Fund Holders: 134

Advanced Micro Devices, Inc. (NASDAQ:AMD)  is among the Best AI Stocks. 

On July 6, Goldman Sachs raised its price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $640 from $450. The firm maintained a Buy rating on the stock.

On June 16, Advanced Micro Devices, Inc. (NASDAQ:AMD) and Rackspace Technology signed a definitive agreement to install an initial 30 megawatts of AMD-based AI compute infrastructure across Rackspace’s global data centers. This legally binding contract authorizes a preliminary memorandum of understanding announced by the two companies in May. The launch of this AI computing power is scheduled to take place in phases from late 2026 through 2028.

The companies said the placement will help regulated enterprise workloads using AMD Instinct GPUs and AMD EPYC CPUs within Rackspace’s Enterprise AI Cloud architecture.

CEO of Rackspace Technology, Gajen Kandiah, said the collaboration combines compute infrastructure with a governed operating model under a single accountable partner.

Senior Vice President and General Manager of Compute and Enterprise AI at AMD, Dan McNamara, commented that the partnership will help regulated enterprises place scalable AI infrastructure. The companies also committed joint sales and marketing resources to pursue enterprise customers across regulated industries.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading semiconductor company working in high-performance computing and graphics solutions.

2. Applied Materials, Inc. (NASDAQ:AMAT)

Number of Hedge Fund Holders: 138

On July 6, Morgan Stanley bumped up its price target on Applied Materials, Inc. (NASDAQ:AMAT)  to $647 from $502. The firm maintained an “Equal Weight” rating on the shares.

On June 16, Reuters reported that Applied Materials, Inc. (NASDAQ:AMAT) signed a long-term agreement with EssilorLuxottica to make augmented reality display technology and artificial intelligence glasses. The companies said they will focus research and development on advanced optical technologies and scale marketing of AI glasses.

Reuters noted that EssilorLuxottica already leads the artificial intelligence glasses market through its long-term partnership with Meta, selling smart glasses under the Ray Ban and Oakley brands. In 2025, it launched its first display-equipped device, the Ray Ban Meta Display.

The report said that artificial intelligence-powered glasses have cameras, microphones, speakers, and voice assistants in conventional frames. Moreover, augmented reality presents greater optical challenges.

Reuters also said Applied Materials, Inc. (NASDAQ:AMAT) manufactures the specialized semiconductor equipment needed to produce the ultra-thin material layers used in AR displays.

Applied Materials, Inc. (NASDAQ:AMAT) is a firm that provides materials engineering solutions used in semiconductor manufacturing. Its segments include Semiconductor Systems and Applied Global Services.

1. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 173

Broadcom Inc. (NASDAQ:AVGO) is among the Best AI Stocks. 

On July 6, Reuters reported that Broadcom Inc. (NASDAQ:AVGO) expanded its partnership with Apple through 2031 to develop and supply custom chips. It extends a relationship that analysts estimate generates about 20% of Broadcom’s annual revenue.

The report said the agreement eased investor concerns that Apple would replace the semiconductor firm’s components with in-house alternatives. It also reinforces the company’s role as a key supplier of radio frequency, Wi-Fi, Bluetooth, and networking chips.

Emarketer analyst Jacob Bourne said the deal gives Apple higher supply chain certainty during chip shortages. The contract also provides Broadcom Inc. (NASDAQ:AVGO) with reassurance as Apple develops its own silicon.

Reuters noted the companies signed a multibillion-dollar agreement in 2023 for 5G radio frequency components. It said that rising AI inference demand has intensified competition for custom chips and advanced processors.

Broadcom Inc. (NASDAQ:AVGO) is a multinational technology business that designs, develops, and sells semiconductors and infrastructure software solutions. It works through Semiconductor Solutions and Infrastructure Software divisions.

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