In this article, we will list the 5 Best Blue Chip AI Stocks to Buy Now. Please visit 8 Best Blue Chip AI Stocks to Buy Now if you would like to see the extended list and the methodology behind it.
5. Arista Networks (NYSE:ANET)
Stock Upside Potential: 54.29%
Number of Hedge Fund Holders: 91
Arista Networks (NYSE:ANET) is one of the best blue-chip AI stocks to buy now. On March 30, Truist Securities initiated coverage of Arista Networks (NYSE:ANET) with a Buy rating and a $161 price target, impressed by its growth over the past five years.
According to the research firm, the company is one of the purest plays in the AI networking theme. That’s because it is leveraging its success in the cloud with hyperscalers and in high-speed data centers by switching to newer AI networks that connect GPU clusters.
Source: unsplash
Consequently, the research firm expects AI-related networking with cloud and AI titans to contribute to the company’s 25% growth this year. Revenue is projected to increase from $1.5 billion to $3.25 billion in 2026. The revenue increase would come as the company is staring at tremendous growth opportunities on campus, where it has just 4% market share in a market valued at $20 billion. It is also well-positioned to capitalize on opportunities in data centers for enterprise and AI specialty providers.
Arista Networks (NYSE:ANET) specializes in high-performance, software-driven networking solutions, primarily for large data centers, cloud computing providers, and AI (Artificial Intelligence) environments. It also designs and sells high-speed Ethernet switches and routers powered by its Extensible Operating System.
4. Meta Platforms, Inc. (NASDAQ:META)
Stock Upside Potential: 60.66%
Number of Hedge Fund Holders: 256
Meta Platforms, Inc. (NASDAQ:META) is one of the best blue-chip AI stocks to buy now. On March 31, Meta Platforms, Inc. (NASDAQ:META) introduced two new Ray-Ban prescription smart glasses, expanding its lineup of AI-powered wearables. Priced from $499 and available for pre-order in the U.S., the Ray-Ban Meta Blayzer Optics and Meta Scriber Optics will launch globally on April 14.
Developed with EssilorLuxottica, the glasses feature customizable hinges and nose pads, making them adaptable to different face shapes. Meta, which already dominates the smart glasses market with over 76% share, sees these products as part of its broader push toward “personal superintelligence,” investing heavily in AI-driven devices to bring advanced technology directly to consumers.
On March 30, Meta Platforms Inc. (NASDAQ:META) began testing a subscription service for its photo-sharing app Instagram.
Instagram Plus is the new service designed to unlock exclusive features for users. For starters, subscribers will be able to view Stories without the owner or poster knowing. They will also create unlimited audience lists for Stories, moving beyond the current Close Friends Option.
In addition, Instant Plus users will be able to extend a Story for an extra 24 hours and send an animated “Superlike” on others’ Stories. Meta Platforms is reportedly testing the service in Mexico, Japan, and the Philippines. The paid service is part of the company’s push to create a new revenue stream. The social networking company has also announced plans for new subscription offerings across Facebook and WhatsApp.
Meta Platforms, Inc. (NASDAQ:META) develops technologies that enable people to connect, share, and build community through social media, virtual/augmented reality (VR/AR), and AI. Its core business includes platforms like Facebook, Instagram, WhatsApp, and Messenger, while Reality Labs focuses on metaverse hardware such as Meta Quest headsets and AI-powered smart glasses.
3. Microsoft Corp (NASDAQ:MSFT)
Stock Upside Potential 61.26%
Number of Hedge Fund Holders: 312
Microsoft Corp (NASDAQ: MSFT) is one of the best blue-chip AI stocks to buy now. On March 27, Microsoft formed a strategic partnership with Victoria University to meet Victoria’s rising need for data center capacity amid heightened cloud and AI adoption.
The partners established the Microsoft Datacenter Academy for Victoria’s growing technical talent needs. With space for 48 students, the program addresses critical skills gaps through training and mentorship from Microsoft and business leaders.
The program is designed to shape future workforce capabilities and address critical skill gaps. It builds on the university’s vision to deliver fully funded and demand-driven courses. It also builds on Microsoft’s Datacenter Community pledge and ongoing investments in skilling initiatives to enable success in the new AI economy.
In addition, Microsoft plans to invest $1 billion over two years to expand cloud and AI in the region, including extending its data center footprint and developing local talent. The investment also supports cybersecurity and sovereign technology initiatives. Microsoft aims to accelerate AI adoption in the workforce.
Microsoft Corp (NASDAQ:MSFT) develops, licenses, and supports software, services, hardware, and AI. Its main activities include Azure cloud, Microsoft 365 productivity software, Windows, Xbox gaming, AI tools like Copilot, and LinkedIn professional networking.
2. Nvidia Corporation (NASDAQ:NVDA)
Stock Upside Potential: 64.02%
Number of Hedge Fund Holders: 264
NVIDIA Corporation (NASDAQ:NVDA) is one of the best blue-chip AI stocks to buy now. On March 16 at the GTC conference, NVIDIA Corporation (NASDAQ:NVDA) unveiled the NVIDIA Physical AI Data Factory Blueprint. The blueprint is part of the company’s push for state-of-the-art in world modeling, humanoid skills, and autonomous driving.
The Omniverse DSX Blueprint unifies simulation across every layer of the AI factory using a single digital twin. It helps operators optimize performance and efficiency before real-world installation. NVIDIA aims to lower the cost and complexity of building modern AI factories through this simulation solution.
The Physical AI Data Factory Blueprint also converts compute into high-quality, large-scale training data. The platform streamlines data curation, augmentation, and evaluation in a single pipeline. Microsoft Azure and Nebius are the first cloud providers to offer this turnkey data production engine.
NVIDIA Corporation (NASDAQ:NVDA) leads in accelerated computing, designing GPUs and software for AI, data centers, gaming, and professional visualization. It dominates AI chip supply, powering generative AI, autonomous vehicles, and robotics.
1. Oracle Corporation (NYSE:ORCL)
Stock Upside Potential: 75.94%
Number of Hedge Fund Holders: 111
Oracle Corporation (NYSE:ORCL) is one of the best blue-chip AI stocks to buy now. On March 30, Bernstein SocGen Group reiterated an Outperform rating on Oracle Corporation (NYSE:ORCL) with a $319 price target. The bullish stance is in response to the company delivering solid quarterly results and guidance that helped alleviate investor concerns.
While there are questions about the company’s data center build-out and customer concentration, Bernstein insists the company’s economics are better than initially feared. In addition, the company continues to generate significant investor interest. According to the research firm, Oracle is slowly becoming a preferred investment as concerns grow about artificial intelligence disrupting software.
The company’s AI Datacenter and core database businesses are also well-positioned to benefit from the AI boom. The investors’ perspective on the company should also improve as more data validate the quality of the company’s core business. For starters, Veritone has already inked a multiyear agreement to leverage Oracle’s Cloud infrastructure as it pursues growth and AI expansion across the commercial and public sectors.
Oracle Corporation (NYSE:ORCL) is a global technology company specializing in enterprise software, database management systems, and cloud computing infrastructure. It enables organizations to manage critical data, including customer, financial, and supply chain information.
While we acknowledge the potential of ORCL 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 ORCL and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: Motley Fool’s 10 High-Growth Stock Picks and 7 Single-Digit Stocks With Double-Digit Growth Potential.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
