In this article, we will list the 5 Best AI Stocks with Huge Upside Potential. Please visit 11 Best AI Stocks with Huge Upside Potential if you would like to see the extended list and the methodology behind it.
5. Datadog Inc. (NASDAQ:DDOG)
Datadog Inc. (NASDAQ:DDOG) is one of the best AI stocks with huge upside potential. On March 9, Datadog announced plans to establish a new data center presence in the UK to support the accelerating cloud adoption within highly regulated industries. This expansion adds to the company’s existing infrastructure in North America, Asia, and Europe, providing local data storage, residency, and security for UK-based organizations.
The move is designed to help customers in sectors such as government, banking, and healthcare manage evolving data governance requirements while reducing latency for their observability and security operations. The decision comes as UK organizations face increased scrutiny over data storage and processing, particularly following the Data (Use and Access) Act 2025. With ~60% of public sector IT systems running on cloud infrastructure and over 80% of financial firms operating in hybrid or multi-cloud environments, the demand for localized data handling has grown.
Datadog’s leadership noted that storing operational data locally has become a practical necessity for companies scaling their AI and cloud capabilities under these modern regulatory frameworks. Scheduled to open later in 2026, the new facility will support Datadog’s entire suite of AI-powered observability and security products. By providing a dedicated UK-resident environment, Datadog Inc. (NASDAQ:DDOG) aims to offer a reliable platform for organizations to modernize their critical systems without compromising on-region data storage requirements.
Datadog Inc. (NASDAQ:DDOG) operates an observability and security platform for cloud applications in the US and internationally.
4. ServiceNow Inc. (NYSE:NOW)
ServiceNow Inc. (NYSE:NOW) is one of the best AI stocks with huge upside potential. On March 16, ServiceNow and Carahsoft Technology Corporation expanded their partnership to distribute the ServiceNow AI platform across broader commercial and industrial sectors in the US and Canada. This agreement marks the first time ServiceNow will use Carahsoft’s extensive network of over 10,000 resellers to reach industries such as healthcare, financial services, manufacturing, and critical infrastructure.
The collaboration is designed to provide these sectors with the same AI-driven ‘control tower’ capabilities previously focused on government and public sector clients. Carahsoft, known as a leading government IT distributor with $23 billion in annual bookings, is using its reputation for security and compliance to enter regulated private markets. By integrating ServiceNow into these channels, the partnership caters to organizations that prefer purchasing through established, trusted partners rather than direct enterprise sales.
This strategy allows ServiceNow Inc. (NYSE:NOW) to meet specific customer demands for complex procurement and high-security technology deployment across North America. The expansion aims to accelerate the adoption of AI solutions by offering greater flexibility in how organizations acquire and implement technology. Through a specialized network of consulting and implementation partners, Carahsoft intends to simplify the acquisition process for its diverse client base.
ServiceNow Inc. (NYSE:NOW) provides a cloud-based solution for digital workflows in North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company has a collaboration with Autonomize AI for the development of AI-driven healthcare solutions for payers.
3. AeroVironment Inc. (NASDAQ:AVAV)
AeroVironment Inc. (NASDAQ:AVAV) is one of the best AI stocks with huge upside potential. On March 10, AeroVironment reported FQ3 2026 revenue of $408.0 million, representing a 143% increase year-over-year. This growth was driven by the acquisition of BlueHalo, which contributed $176.5 million to the quarter’s total product & service revenue. While the Autonomous Systems segment led with $278.7 million in revenue, the company also saw demand reflected in a record-funded backlog of $1.1 billion.
Despite higher sales, the company faced non-cash charges that impacted the bottom line. AeroVironment recognized a $151.3 million goodwill impairment charge within its Space reporting unit following a stop-work order on the BADGER phased array antenna systems for the Space Force. Additionally, gross margin as a percentage of revenue decreased to 24%, down from 38% the prior year, due to an increased proportion of service revenue from BlueHalo and $43.9 million in intangible amortization & purchase accounting expenses. These factors led to a loss from operations of $179.0 million for the quarter.
For FQ3, AeroVironment Inc. (NASDAQ:AVAV) reported a net loss of $156.6 million, or $3.15 per diluted share. Looking ahead, the company has updated its full-year fiscal 2026 guidance, projecting total revenue between $1.85 billion and $1.95 billion, supported by a strong book-to-bill ratio of 1.6 for the first nine months of the fiscal year.
AeroVironment Inc. (NASDAQ:AVAV) is a global defense technology leader that designs, develops, produces, delivers, and supports a portfolio of robotic systems & related services in the US and internationally. It operates in two segments: Autonomous Systems; and Space, Cyber & Directed Energy.
2. Zebra Technologies Corporation (NASDAQ:ZBRA)
Zebra Technologies Corporation (NASDAQ:ZBRA) is one of the best AI stocks with huge upside potential. On February 12, Zebra Technologies reported a strong conclusion to 2025, with Q4 net sales reaching $1,475 million, which was a 10.6% increase year-over-year. This growth was led by the Connected Frontline segment, which saw sales rise to $854 million, supported by the integration of the Elo Touch acquisition and a 2.5% increase in consolidated organic net sales.
While the company achieved an Adjusted EBITDA of $326 million (a 10.5% improvement), GAAP net income fell to $70 million, primarily due to $76 million in restructuring charges and the strategic decision to exit the robotics business. The company is sharpening its focus on high-growth opportunities by digitizing and automating workflows across its two primary divisions. The Asset Visibility & Automation segment contributed $621 million to quarterly net sales, while the Connected Frontline segment remained the primary growth driver.
Operating expenses for the quarter rose to $559 million, reflecting both the costs of reorganization and the expanded scale of the business following recent acquisitions. Zebra Technologies Corporation (NASDAQ:ZBRA) continues to prioritize the return of capital to its shareholders, completing $303 million in share repurchases during Q4 as part of an initial $500 million commitment. To further this strategy, the Board of Directors has authorized an additional $1 billion for future share repurchases.
Zebra Technologies Corporation (NASDAQ:ZBRA), together with its subsidiaries, operates in the automatic identification and data capture solutions industry worldwide. It operates in two segments: Connected Frontline and Asset Visibility & Automation.
1. Alibaba Group Holding Limited (NYSE:BABA)
Alibaba Group Holding Limited (NYSE:BABA) is one of the best AI stocks with huge upside potential. On March 16, Bloomberg reported that Alibaba is consolidating its AI operations into a new business unit called Alibaba Token Hub. Led directly by CEO Eddie Wu, this division will integrate the research team behind the flagship Qwen models with consumer-facing applications, the DingTalk communication platform, and Quark-branded hardware like smart glasses.
The restructuring aims to improve coordination between researchers and product developers while signaling a shift toward monetizing AI through enterprise-facing services and computing units. The revamp follows the sudden departure of Qwen’s lead researcher, Junyang Lin, and comes as Chinese tech firms struggle to match the profitability of Western rivals like OpenAI.
Unlike international markets, Chinese consumers are often reluctant to pay for software subscriptions, and many domestic models remain open-source. By naming the unit after ‘tokens’ (the standard units of AI data processing), Alibaba is emphasizing a business model built around delivering and applying computing power to generate revenue. Moving forward, Alibaba Group Holding Limited (NYSE:BABA) plans to launch a dedicated agentic AI service for corporate clients, potentially integrating it with core platforms like Taobao and Alipay to streamline tasks from search to checkout.
Alibaba Group Holding Limited (NYSE:BABA), through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses engage with their users and customers in the People’s Republic of China and internationally.
While we acknowledge the potential of BABA 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 BABA and that has 100x upside potential, check out our report about the cheapest AI stock.
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