In this article, we will list the 5 Best AI Pick-and-Shovel Stocks to Buy. Please visit 10 Best AI Pick-and-Shovel Stocks to Buy if you would like to see the extended list and the methodology behind it.
5. Lightbridge Corporation (NASDAQ:LTBR)
On March 31, 2026, Lightbridge Corporation (NASDAQ:LTBR) announced it received a notice of allowance from the U.S. Patent and Trademark Office for a patent application covering its “Fuel Assembly” technology. The application includes 16 claims related to fuel assemblies and reactors using its spirally twisted, multi-lobed fuel element design for pressurized heavy-water reactors, including CANDU-type systems, describing elements with fissile material embedded in a metal matrix and specific moderator-to-fuel ratios.
On March 24, 2026, Lightbridge said it was selected to join the Industry Advisory Board for a $6M nuclear materials research project funded by the U.S. Department of Energy’s Nuclear Energy University Program and led by Pennsylvania State University. The project focuses on materials research for next-generation reactors, with participation from companies including X-Energy, Westinghouse Electric Company, and Kairos Power.
On March 17, 2026, Lightbridge announced an engineering contract with Stern Laboratories to evaluate the thermal and hydraulic performance of its fuel for light water reactors. The work, to be conducted in phases at Stern’s facility in Ontario, includes fuel simulator design, acceptance testing, and multi-phase critical heat flux investigations, with Phase 1 expected to take about one year.
Lightbridge Corporation (NASDAQ:LTBR) develops nuclear fuel technologies for commercial reactors.
4. Oklo Inc. (NYSE:OKLO)
On March 29, 2026, Oklo Inc. (NYSE:OKLO) and Blykalla AB announced an expansion of their transatlantic partnership to advance fast reactor commercialization. CEO Jacob DeWitte said the collaboration aims to “bring more power plants online more quickly,” with planned workstreams including support for Oklo’s U.S. Department of Energy-authorized reactor pilot project and potential fast-neutron irradiation testing using Oklo’s powerhouses.
On March 25, 2026, UBS lowered the price target on Oklo Inc. (NYSE:OKLO) to $60 from $95 previously and maintained a Neutral rating on the shares. UBS said it remains cautiously optimistic on U.S. nuclear development but cited concerns around capital requirements, potential delays, and cost overruns.
Meanwhile, B. Riley lowered its price target on Oklo to $92 from $129 and maintained a Buy rating, noting progress across power, fuel, and isotope businesses, including DOE approvals for its Aurora plant, a prepayment agreement with Meta for up to 1.2 GW in Ohio, initial fuel facility construction, and milestones tied to isotope operations. The firm also noted Oklo ended the quarter with $1.4B in cash, raised $1.2B post-quarter, and guided 2026 operating and investing cash use.
Oklo Inc. (NYSE:OKLO) develops advanced fission power plants for energy generation.
3. Vertiv Holdings Co (NYSE:VRT)
On April 1, 2026, Barclays analyst Julian Mitchell raised the price target on Vertiv Holdings Co (NYSE:VRT) to $300 from $281 and maintained an Overweight rating as part of a broader Q1 preview. Julian Mitchell said the sector is facing “more demand question marks,” though expectations have been “somewhat re-based.”
On March 30, 2026, Vertiv Holdings Co (NYSE:VRT) announced an approximately $50M investment to expand its manufacturing operations in Ironton, Ohio, and its headquarters campus in Westerville, Ohio. The expansion is expected to create hundreds of jobs through 2029 and increase production capacity for liquid cooling and chilled water systems by about 45%, with operations at the Ironton site expected to begin in the second quarter of 2027.
On March 24, 2026, HSBC initiated coverage on Vertiv Holdings Co (NYSE:VRT) with a Buy rating and a $325 price target. HSBC said the company is an “important enabler” of AI growth through its power and thermal management solutions, and expects strong long-term demand for data center infrastructure, projecting significant earnings growth through 2028.
Vertiv Holdings Co (NYSE:VRT) provides infrastructure technologies and services for data centers and digital networks.
2. Modine Manufacturing Company (NYSE:MOD)
On March 29, 2026, GLJ Research analyst Austin Wang initiated coverage of Modine Manufacturing Company (NYSE:MOD) with a Buy rating and a “Street-high” $290 price target on the shares. Austin Wang has said that the private competitor checks and hyperscaler margin trends point to upside in both long-term guidance and margins, adding that the market is underestimating Modine Manufacturing Company (NYSE:MOD)’s North American data center chiller capacity ramp.
Meanwhile, DA Davidson has maintained a Buy rating and a $265 price target on Modine Manufacturing Company (NYSE:MOD) after meeting with management, saying it came away “quite bullish on a number of fronts.” The firm has noted that the company’s datacenter funnel has expanded significantly since its September 2024 analyst day, supporting its growth outlook through FY28, and pointed to additional upside from hyperscaler demand, international data center expansion, and non-data center opportunities.
Modine Manufacturing Company (NYSE:MOD) provides thermal management and cooling solutions, including data center cooling systems and related services.
1. Digital Realty Trust, Inc. (NYSE:DLR)
On April 8, 2026, Cantor Fitzgerald initiated coverage of Digital Realty Trust, Inc. (NYSE:DLR) with an Overweight rating and a $211 price target. Cantor Fitzgerald said AI infrastructure is “an attractive place to invest,” noting demand tied to AI adoption across industries and expecting a sustained supply and demand imbalance over the next five-plus years to support pricing.
On March 30, 2026, Truist assumed coverage of Digital Realty Trust, Inc. (NYSE:DLR) with a Buy rating and raised its price target to $207 from $202. Truist said data centers are its preferred sub-sector within communications infrastructure and technology, describing them as “the effective real estate partner for AI, Cloud and digital transformation investment,” and highlighted Digital Realty and Equinix as preferred names.
On March 23, 2026, Digital Realty Trust, Inc. (NYSE:DLR) announced plans to enter the Milan market with the acquisition of two land parcels in Abbiategrasso, located southwest of the city center. The planned campus will sit along a subsea traffic corridor connecting Milan to Genoa and Savona and provide access to regional fiber routes.
Digital Realty Trust, Inc. (NYSE:DLR) develops and operates data centers globally.
While we acknowledge the potential of DLR 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 DLR and that has 100x upside potential, check out our report about the cheapest AI stock.
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