In this article, we will look at the 8 Best Up and Coming AI Stocks to Buy Now.
On June 2, CNN released a report highlighting that the AI infrastructure buildout is reshaping Wall Street, and 2026 is expected to be a prominent year with major IPOs and massive infrastructure spending, creating a ripple effect across the market. Recently, Anthropic made its move towards going public, and OpenAI is expected to follow suit. As per Reuters, OpenAI has confidentially filed for a U.S. initial public offering recently. Moreover, Elon Musk’s SpaceX has already filed for IPO and is expected to begin trading soon. These high-profile listings are creating investor excitement.
According to a recent report by Morgan Stanley, the equity markets opened the year on a strong footing as global issuance rose 43% year-over-year to $256.8 billion in the first quarter of 2026, and IPO volumes increased 40% to $45 billion during the same time. The report highlighted that the current IPO pipeline reflects larger, later-stage companies filing for IPOs across different sectors, which suggests market depth and breadth.
Let’s take a look at the Best Up and Coming AI Stocks to Buy Now.
Our Methodology
To curate the list of Best Up and Coming AI Stocks to Buy Now, we used screeners to identify stocks that have gone public in the last 5 years, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
8 Best Up and Coming AI Stocks to Buy Now
8. GLOBALFOUNDRIES Inc. (NASDAQ:GFS)
Number of Hedge Fund Holders: 44
GLOBALFOUNDRIES Inc. (NASDAQ:GFS) completed its initial public offering in October 2021, and the company has quickly gained investor attention and was held by 44 hedge funds as of Q1 2026. The stock also ranks as one of our Best Up and Coming AI Stocks to Buy Now.
Recently, on June 3, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) announced a strategic partnership with the US Department of Energy’s Genesis Mission, which is focused on accelerating scientific discovery through AI and advanced computing. As part of this partnership, the company will open its US manufacturing platform and design resources to Genesis Mission researchers, including National Laboratories, universities, startups, and industry partners. Management noted that the goal is to give these groups a clear, practical path from AI-driven chip design all the way to working prototype silicon.
Moreover, the company’s internal R&D team is expected to lead the partnership. The key areas of collaboration include AI-enabled chip design, access to process design kits (PDKs), prototype fabrication through GF’s multi-project wafer program, and development of next-generation technologies such as silicon photonics and quantum computing.
That said, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) reported strong results for fiscal Q1 2026 on May 5. It reported an EPS of $0.40, surpassing the estimated $0.35. The revenue reached $1.634 billion, aligning closely with analyst expectations and reflecting a 3% year-over-year increase. Management raised its full-year revenue guidance for the Communications Infrastructure and Data Center segment to the high end of the 30% range, up from previous estimates of 30%.
GLOBALFOUNDRIES Inc. (NASDAQ:GFS) is a leading multinational semiconductor manufacturer operating as a pure-play foundry, producing chips designed by other companies.
7. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 46
Arm Holdings plc (NASDAQ:ARM) is one of the Best Up and Coming AI Stocks to Buy Now. The company completed its IPO in 2023 with a market valuation of roughly $54.5 billion and was considered one of the largest IPOs of the year. Since then, the company has gone on to become a prominent AI company with a current market valuation of $366.276 billion.
Recently, on June 4, Mizuho raised the firm’s price target on Arm Holdings plc (NASDAQ:ARM) from $425 to $500 and maintained an Outperform rating on the shares. The firm noted that agentic AI tailwinds are accelerating for Arm, driven by expanding platform partnerships with Oracle and ByteDance. Moreover, Mizuho now believes Arm can generate as much as $15 billion in agentic AI infrastructure CPU revenue by fiscal year 2031. As a result, the firm updated its earnings estimates higher for the company.
Moreover, the company posted strong results for fiscal Q4 2026 on May 7. During the quarter, the company posted revenue of $1.49 billion and adjusted EPS of $0.60, surpassing estimates of $1.47 billion and estimated EPS of $0.58. For the fiscal first quarter of 2027, management expects revenue of around $1.26 billion and adjusted EPS between $0.36 and $0.44.
Arm Holdings plc (NASDAQ:ARM) is involved in the licensing, research, marketing, and development of system IP, microprocessors, graphics processing units, physical IP, and associated systems IP, software, and tools. The company’s operations are divided into the following geographical segments: the United Kingdom, the United States, and Other Countries.
