In this article, we will list the 5 Best AI Infrastructure Stocks to Buy According to Hedge Funds. Please visit 10 Best AI Infrastructure Stocks to Buy According to Hedge Funds if you’d like to see an extended list and the methodology behind it.
5. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 201
On the back of strong confidence from hedge funds and Wall Street, Alphabet Inc. (NASDAQ:GOOGL) is one of the best AI infrastructure stocks, with upside potential of 11.7%.
Copyright: andreykuzmin / 123RF Stock Photo
Alphabet Inc. (NASDAQ:GOOGL) is entering private equity partnerships as AI deployment moves from hyperscale data centers into the broader enterprise.
On May 28, 2026, Alphabet Inc. (NASDAQ:GOOGL)’s Google Cloud announced a partnership with Swedish private equity firm EQT to help more than 300 companies across EQT’s portfolio accelerate AI adoption. Under the agreement, EQT’s portfolio companies, spanning sectors from enterprise software to healthcare, will gain access to AI tools, including the Gemini Enterprise Agent platform, as well as cybersecurity services. They will also receive early access to selected Google Cloud AI products going forward.
Alphabet Inc. (NASDAQ:GOOGL)’s Google engineers will work alongside EQT’s AI transformation team of roughly 35 people, and EQT’s portfolio companies will gain access to Google Cloud’s partner network of more than 330,000 specialists from firms including Accenture, Deloitte, and KPMG. The deal also gives EQT’s software companies the ability to sell their own products through Google Cloud’s online marketplace.
The arrangement follows similar deals Alphabet Inc. (NASDAQ:GOOGL) struck in April with software-focused investors Vista Equity Partners and Thoma Bravo.
From a broader perspective, the agreements reflect a push by cloud providers to embed their AI platforms deep into enterprise software ecosystems through private equity channels, expanding their customer base well beyond direct enterprise sales.
Alphabet Inc. (NASDAQ:GOOGL) is a holding company that operates Google services such as search engines, ad platforms, Internet browsers, devices, mapping software, app stores, video streaming, and more. The company also offers cloud infrastructure and platform services, collaboration tools, and other services for enterprise customers, as well as healthcare-related services and internet services.
4. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
With strong hedge fund and Wall Street support, Meta Platforms, Inc. (NASDAQ:META) ranks among the best AI infrastructure stocks and carries an upside potential of 30.4%.
Meta Platforms, Inc. (NASDAQ:META)’s AI ambitions are expanding well beyond its core advertising business, and Wall Street is starting to price in the potential value of those opportunities.
On June 1, 2026, RBC Capital reiterated an “Outperform” rating and $810 price target on the stock, arguing that Meta Platforms, Inc. (NASDAQ:META) sits at the intersection of two trends that could accelerate total addressable market expansion: differentiated compute capacity enabling identification of unexpressed demand, and an explosion in AI-enabled entrepreneurialism.
RBC framed its thesis around what it calls “Born on Meta,” referring to the creation of businesses, products, and services driven by Meta Platforms, Inc. (NASDAQ:META)’s combination of behavioral data and AI compute.
The firm noted that the digital ads market is approaching $1 trillion and likely compounding at high single-digit to roughly 10% growth over the next few years. Meta Platforms, Inc. (NASDAQ:META)’s current roughly 5% advertiser penetration of businesses already on its apps likely generates 80% to 90% of its $55 billion to $60 billion annualized dollar growth.
RBC said that deepening that penetration, alongside product and service expansion as compute ramps up, could contribute tens of billions per year incrementally.
Meanwhile, Meta Platforms, Inc. (NASDAQ:META) is accelerating its hardware ambitions.
On May 29, 2026, Reuters reported that Meta plans to begin testing an AI pendant within the next year, and to significantly expand its AI glasses lineup and launch a business-focused “Wearables for Work” service. Meta aims to sell 10 million wearable devices in the second half of 2026. The push comes despite Reality Labs posting a $4.03 billion loss on $402 million in revenue in the first quarter.
Meta Platforms, Inc. (NASDAQ:META) develops products that allow people to share and connect with their family and friends using PCs, mobile devices, virtual reality (VR) headsets, and AI glasses. Some of its well-known apps include Facebook, Instagram, and WhatsApp. It operates in the Reality Labs (RL) and Family of Apps (FoA) segments.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 275
On the back of strong confidence from hedge funds and Wall Street, NVIDIA Corporation (NASDAQ:NVDA) is one of the best AI infrastructure stocks, with upside potential of 34.0%.
NVIDIA Corporation (NASDAQ:NVDA) is not just selling chips into the AI buildout. It now provides infrastructure builders with an end-to-end stack to construct, simulate, and operate entire AI factories.
On June 1, 2026, NVIDIA Corporation (NASDAQ:NVDA) announced the NVIDIA DSX platform, a co-designed system that brings together open-source software libraries, application programming interfaces, reference designs, accelerated computing platforms, and partner technologies into a unified framework for AI factory design, deployment, and operations.
The latest additions to NVIDIA Corporation (NASDAQ:NVDA)’s platform include two new open source software layers.
DSX MaxLPS is a suite of technologies designed to maximize token performance per megawatt within a fixed power budget, combining 45-degree Celsius liquid cooling with in-rack optimization tools that allow operators to run up to 40% more GPUs at their most energy-efficient point with minimal workload impact. DSX OS is a modular software layer purpose-built for AI factory operations, covering lifecycle management, intelligent scheduling, health automation, resiliency, and multi-tenant operations.
Those additions join existing DSX components, including DSX Sim, a high-fidelity simulation layer that lets operators model and validate infrastructure decisions before deployment; DSX Flex, which connects AI factories to power grid services for dynamic workload adaptation; and DSX Exchange, which integrates compute, energy, and cooling signals across IT and operational systems.
The platform is already seeing broad adoption.
Cloud partners, including CoreWeave, Lambda, and Nebius, are deploying DSX components, while Dell Technologies, HPE, Lenovo, and Supermicro are building DSX-ready systems. Jensen Huang said DSX lets builders simulate an entire factory before spending a dollar.
NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units. Through its CUDA ecosystem, the company enables industries ranging from autonomous vehicles to scientific research by advancing AI, accelerated computing, and data center infrastructure.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 282
With strong hedge fund and Wall Street support, Microsoft Corporation (NASDAQ:MSFT) ranks among the best AI infrastructure stocks and carries an upside potential of 24.4%.
Previously, Microsoft Corporation (NASDAQ:MSFT) built its early AI lead through its partnership with OpenAI. However, now, it is racing to prove it can operate independently.
On May 28, 2026, Reuters reported that Microsoft Corporation (NASDAQ:MSFT) plans to unveil a suite of homegrown AI models at its annual Build developer conference in San Francisco, including a coding model aimed at boosting usage of its GitHub Copilot tool. Microsoft is also planning to roll out new models specializing in transcription, reasoning, speech, and images, according to the report. Microsoft shares climbed nearly 3% on the news.
The announcement reflects a broader strategic pivot.
Microsoft Corporation (NASDAQ:MSFT) has historically relied on models from OpenAI, Anthropic, and Google to power GitHub Copilot, but products such as Anthropic’s Claude Code have quickly risen to the top of AI-assisted coding, pressuring the tool’s competitive position. The two companies have also restructured their partnership terms in recent months to reduce reliance on each other, pushing Microsoft to accelerate its own model development.
To close the gap, Microsoft Corporation (NASDAQ:MSFT) is also eyeing AI startup acquisitions, Reuters reported earlier in May, with potential deals aimed at building AI talent and delivering on a stated goal of developing a cutting-edge model by next year.
Analyst sentiment on Microsoft Corporation (NASDAQ:MSFT) remains strong despite the strategic uncertainty. As of June 1, 2026, 57 of 61 covering analysts rate the stock bullish, with a median price target of $557.90.
Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 353
On the back of strong confidence from hedge funds and Wall Street, Amazon.com, Inc. (AMZN) is one of the best AI infrastructure stocks, with upside potential of 16.4%.
Amazon.com, Inc. (NASDAQ:AMZN)’s cloud business has already served as the backbone of the AI buildout. Yet a ten-year, $100 billion commitment from Anthropic indicates that growth is only set to accelerate from here.
On May 29, 2026, Truist raised its price target on Amazon.com, Inc. (NASDAQ:AMZN) to $320 from $310, keeping a “Buy” rating. The firm lifted its AWS revenue estimates for fiscal 2027 and beyond to better reflect the potential flow-through from the company’s recently announced $100 billion partnerships with both Anthropic and OpenAI and the corresponding recognition in revenues from backlog. The analyst contended that consensus is underestimating both fiscal 2027 capex and revenue growth.
The Anthropic partnership is a major driver of that outlook.
Anthropic is committed to spending more than $100 billion over the next ten years on AWS technologies, encompassing current and future generations of Amazon.com, Inc. (NASDAQ:AMZN)’s Trainium custom silicon and tens of millions of Graviton CPU cores. Anthropic will secure up to 5 gigawatts of capacity to train and power its AI models, including significant Trainium3 capacity expected to come online this year. The collaboration also includes expanded international inference in Asia and Europe to serve Claude’s growing customer base.
Amazon.com, Inc. (NASDAQ:AMZN) will also invest $5 billion in Anthropic, with up to an additional $20 billion tied to certain commercial milestones, on top of the $8 billion previously invested. According to management, more than 100,000 customers currently run Anthropic’s Claude models on AWS, making Claude one of the most widely used model families on Amazon Bedrock.
Amazon.com, Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.
While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
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