In this article, we will list the 5 Best Pick and Shovel AI Stocks to Invest In. Please visit 10 Best Pick and Shovel AI Stocks to Invest In if you would like to see the extended list and the methodology behind it.
5. Digital Realty Trust, Inc. (NYSE:DLR)
On July 1, 2026, Barclays raised its price target on Digital Realty Trust, Inc. (NYSE:DLR) to $197 from $189 and kept an Equal Weight rating. Barclays raised targets across the communications infrastructure real estate investment trust group, citing higher growth expectations than previously modeled. The firm said the companies are benefiting from ongoing hyperscale demand and accelerating enterprise AI demand.
On June 30, Digital Realty and Blackstone announced that Digital Realty agreed to purchase stakes from Blackstone-affiliated funds in three fully leased Northern Virginia data centers with 288 megawatts of total IT capacity. The transaction values the assets at a gross value of $7.8B and reflects an expected initial stabilized capitalization rate of over 6.5%. Digital Realty will pay Blackstone $3.5B for its blended 64% equity interest, including $1.2B in cash and $2.3B in Digital Realty shares, based on the last reported sale price of the company’s common stock on June 29.
The portfolio includes two data centers in Manassas and one on the Digital Dulles campus in Sterling, each with 96 megawatts of IT capacity and 100% leased to three distinct investment-grade hyperscale customers. Two of the data centers are expected to stabilize in the first half of 2027, while the third is expected to stabilize in the first half of 2028. The purchase is expected to be completed on June 30, subject to customary closing conditions.
Digital Realty Trust, Inc. (NYSE:DLR) provides data center, colocation, and interconnection solutions.
4. Iron Mountain Incorporated (NYSE:IRM)
On July 1, 2026, Barclays analyst Brendan Lynch raised the firm’s price target on Iron Mountain Incorporated (NYSE:IRM) to $143 from $127 and kept an Overweight rating. Lynch said Barclays raised targets across the communications infrastructure real estate investment trust group due to higher growth expectations than previously modeled. The firm said the companies are benefiting from ongoing hyperscale demand and accelerating enterprise AI demand.
On June 15, Iron Mountain announced a proposed offering of $1B aggregate principal amount of Senior Notes due 2035. The notes will initially be fully and unconditionally guaranteed by the company’s subsidiaries that are obligors under each series of its existing notes. Iron Mountain intends to use the net proceeds to repay part of the amounts outstanding under its revolving credit facility, pay related fees and expenses, and for general corporate purposes. The exact terms and timing will depend on market conditions and other factors.
Earlier, Truist analyst Tobey Sommer raised the firm’s price target on Iron Mountain to $140 from $130 and kept a Buy rating after better-than-expected Q1 results. Sommer said data center lease trends tend to drive the stock because the segment has a larger total addressable market, higher margins, and better multiples.
Iron Mountain Incorporated (NYSE:IRM) provides services that help customers unlock value and intelligence from physical and digital assets.
3. CoreWeave, Inc. (NASDAQ:CRWV)
On July 2, 2026, Rosenblatt viewed the prior day’s selloff in CoreWeave, Inc. (NASDAQ:CRWV) shares as a buying opportunity after Bloomberg reported that Meta Platforms (META) is planning a cloud business to sell AI computing power. Rosenblatt said its channel checks show no change in hyperscale demand for GPU compute procurement, with GPU shortages remaining “the norm right now across the industry.” The firm also does not believe Meta has the right to resell to third parties any capacity it has leased from CoreWeave through 2032. Rosenblatt reiterated a Buy rating and $250 price target on CoreWeave.
On the same day, Jefferies said it is “bullish” on reports that Meta is entering the cloud business. The firm argued that Meta is following Amazon’s (AMZN) AWS playbook by monetizing excess compute to lift utilization, improve ROIC, and boost cash flow to fund more capex. Jefferies also called a cloud business “strategic” to Meta’s longer-term AI ambitions, while saying CoreWeave’s value remains intact because it is “one of the best” at hosting AI compute.
On June 29, CoreWeave announced the launch of CoreWeave ARIA, an AI research agent built directly into Weights & Biases. ARIA was built using W&B Weave, CoreWeave’s agent development platform, whose agent development capabilities also entered general availability that day. Praneeth Gangavarapu, PhD Candidate at Scripps Research, said ARIA has become a “valuable part” of daily workflow by helping generate reports, create sweep configurations from natural language, and automate manual setup tasks.
CoreWeave, Inc. (NASDAQ:CRWV) operates as a cloud infrastructure technology company in the United States.
2. Constellation Energy Corporation (NASDAQ:CEG)
On July 1, 2026, Citi lowered its price target on Constellation Energy Corporation (NASDAQ:CEG) to $297 from $348 previously and kept a Neutral rating on the shares. Citi updated its model after the PJM meeting.
On June 26, Constellation filed license renewal applications with the Nuclear Regulatory Commission to extend operations of the Ginna Clean Energy Center and Nine Mile Point Unit 1 reactors in upstate New York to 2049. The company said the decision reflects New York State’s renewal of its Zero Emissions Credit program. CEO Joe Dominguez cited the company’s “safe, reliable, zero-emission power,” noting that Constellation’s four upstate nuclear units provide nearly half of New York’s clean power. Constellation said renewal of the ZEC program is projected to deliver $50B in ratepayer savings by 2050, contribute $38B to New York’s economy, secure 14,000 local jobs, and preserve $10B in tax revenue for the state.
On June 24, Morgan Stanley raised its price target on Constellation Energy to $364 from $359 and kept an Overweight rating. Morgan Stanley updated price targets for Regulated & Diversified Utilities / IPPs in North America for May and noted that utilities underperformed the S&P’s return for the month.
Constellation Energy Corporation (NASDAQ:CEG) produces and sells electricity, natural gas, energy-related products, and sustainable solutions in the United States.
1. Quanta Services, Inc. (NYSE:PWR)
On July 2, 2026, Truist raised its price target on Quanta Services, Inc. (NYSE:PWR) to $940 from $851 and kept a Buy rating. Truist adjusted estimates and targets across the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. The firm sees a positive setup for Q2 earnings reports across the sector, with demand trends remaining strong and supported by secular growth tailwinds in power, data center, aerospace and defense, and infrastructure.
Towards the end of May, Oppenheimer upgraded Quanta Services to Outperform from Perform with an $800 price target following a transfer of coverage. Oppenheimer said Quanta is “positioned in markets with superior growth prospects,” citing exposure to power generation, complex facilities development, underground delivery network modernization, and pipeline. The firm said these areas are needed to support electrification demand, AI development, and other secular drivers, and sees potential margin expansion for Quanta.
Earlier, Quanta Services’ Board of Directors, in support of management’s request, authorized a new stock repurchase program allowing the company to buy up to $1B of its outstanding common stock from time to time. Under the existing stock repurchase program, which expires June 30, 2026, Quanta had acquired 540,788 shares of common stock in the open market for approximately $135M.
Quanta Services, Inc. (NYSE:PWR) provides infrastructure solutions for the electric and gas utility, power generation, load center, manufacturing, communications, pipeline, and energy industries.
While we acknowledge the potential of PWR 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 PWR and that has 100x upside potential, check out our report about the cheapest AI stock.
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