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. 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. 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. 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.
6. Astera Labs, Inc. (NASDAQ:ALAB)
Number of Hedge Fund Holders: 53
Astera Labs, Inc. (NASDAQ:ALAB) is one of the Best Up and Coming AI Stocks to Buy Now. On June 4, Stifel reiterated a Buy rating on Astera Labs, Inc. (NASDAQ:ALAB) with a price target of $260.
The rating comes after the firm met with the management at the Cross-Sector 1-on-1 2026 conference in Boston. Stifel noted meeting the company’s former CFO and current Strategic Advisor, Mike Tate, and Head of IR Leslie Green. Following the meeting, the firm found that the company’s total addressable market is expanding across the portfolio. Moreover, Stifel also noted that Astera’s optical roadmap presents meaningful growth opportunities, and lastly, it sees demand remaining healthy as the firm did not find any signs of over-ordering.
Earlier, on May 26, Northland downgraded the stock from Outperform to Market Perform without disclosing any price targets due to valuation concerns. The firm noted that it acknowledges near-term positives, including a rise in estimates as the Scorpio-X product ramps up. However, the downgrade is driven by a more cautious, longer-term view. Northland expects the datacenter spending to decline in calendar year 2027 as the hyperscalers are facing increased cash constraints.
Astera Labs, Inc. is a global semiconductor company that provides hardware and software solutions for AI and cloud infrastructure applications to solve memory, data, and networking bottlenecks. The company’s operations are divided into the following geographical segments: Taiwan, China, the United States, and Other.
5. Qnity Electronics, Inc. (NYSE:Q)
Number of Hedge Fund Holders: 58
Qnity Electronics, Inc. (NYSE:Q) is one of the Best Up and Coming AI Stocks to Buy Now. The company reported its fiscal Q1 2026 earnings on May 12. The decline comes despite Qnity Electronics, Inc. (NYSE:Q)’s significant beat as adjusted EPS of $1.08 topped the estimated $0.92. Moreover, the revenue reached $1.315 billion, exceeding the forecasted $1.27 billion.
Management noted an 18% year-over-year increase in revenue and 33% increase in adjusted EPS during the quarter. CEO Jon Kemp highlighted this as the company’s eighth consecutive quarter of double-digit profitable organic growth, and attributed growth to Qnity’s integrated portfolio spanning advanced chips, packaging, interconnects, and thermal management. Management noted that growth is increasingly driven by complex, multi-chip system designs, which is one of the strategic advantages of the company.
Looking ahead, management raised the full-year revenue outlook to a range of $5.23 billion to $5.38 billion and adjusted EPS guidance to between $3.80 and $4.14 and cited strong first-quarter momentum as the primary driver.
Qnity Electronics, Inc. is a semiconductor and electronics materials company spun off from DuPont that develops components for AI, high-performance computing, and 5G technologies.
4. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Number of Hedge Fund Holders: 59
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the Best Up and Coming AI Stocks to Buy Now. The company recently reported its fiscal Q4 2026 earnings on June 1. Following the release on June 2, Mizuho analyst Vijay Rakesh raised the price target on Credo Technology Group Holding Ltd (NASDAQ:CRDO) from $260 to $290 and maintained an Outperform rating on the shares.
During the quarter, the company reported strong results with revenue growing 157% year-over-year to $437 million, ahead of the expected $433.3 million. The EPS of $1.16 also topped the $1.03 consensus estimate. Management noted the growth to be driven by surging demand for Active Electrical Cables and AI data center connectivity solutions. The company noted that customers are scaling larger GPU clusters, and Credo is benefiting directly.
Notably, gross margins remained healthy at around 68%, and non-GAAP net income for the quarter came in at $277 million. Looking ahead, management guided Q1 fiscal 2027 revenue between $465 million and $475 million.
Analyst Rakesh noted the quarter to be solid and also pointed out the guidance to be above consensus, hence increased the price target.
Founded in 2008, Credo Technology Group Holding Ltd develops high-speed connectivity products and solutions for the data infra market (specifically optical and electrical Ethernet and PCIe applications), including SerDes chiplets, integrated circuits, and electrical cables. The company is based in the Cayman Islands.
3. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 63
CoreWeave, Inc. (NASDAQ:CRWV) is one of the Best Up and Coming AI Stocks to Buy Now. On June 2, Bloomberg reported that a data center subsidiary linked to CoreWeave, Inc. (NASDAQ:CRWV) has raised $900 million through a high-yield bond offering, adding to the growing wave of debt issuance funding AI infrastructure expansion.
The report noted that 5-year bonds were issued by Elk Grove Village Property LLC, priced at par with a 7.5% yield. According to the report, the proceeds of this sale are expected to fund building a hyperscale data center in the Chicago metropolitan area. Notably, the facility has already been fully leased to CoreWeave for 15 years, representing approximately $2.2 billion in contracted revenue, thereby providing a stable and long-term cash flow.
The report noted that developers are increasingly turning to the junk bond market to finance rapid capacity expansion driven by AI demand.
Overall, the Street is bullish on CoreWeave, Inc. as 62% of the 39 analysts covering the stock maintain a Buy rating. Moreover, the 12-month average price target suggests more than 39% upside from the current levels.
CoreWeave Inc. works as a cloud infrastructure technology company. It offers various services, which include proprietary software and cloud services used for automation, infrastructure control solutions, and data storage. Moreover, it provides model and agent development tools, GPU and CPU compute, virtual and bare metal servers, pixel streaming, batch processing solutions, and more.
2. Core Scientific, Inc. (NASDAQ:CORZ)
Number of Hedge Fund Holders: 81
Core Scientific, Inc. (NASDAQ:CORZ) is one of the Best Up and Coming AI Stocks to Buy Now. Recently, on June 3, Bernstein raised its price target on the stock from $24 to $32 and maintained an Outperform rating on the shares. Earlier on May 27, B. Riley also raised the price target on Core Scientific, Inc. (NASDAQ:CORZ) from $30 to $33 and maintained a Buy rating on the shares.
Bernstein noted that the update in price target comes as a result of the firm’s updated valuation methodology, which now focuses on the company’s AI infrastructure business, rather than its bitcoin mining operations. This shift comes as Core Scientific reallocates power capacity away from bitcoin mining and toward AI infrastructure.
On the other hand, B. Riley noted that the recent pace and scale of hyperscale contracts have accelerated sharply, which the firm believes is a positive sign for the company. The firm highlighted updating its models to reflect recent deal announcements, site developments, and quarterly results.
The analyst pointed out that NIMBY opposition and electrical equipment shortages have shifted from background risks to real, material constraints on data center development. This supply-side friction works in Core Scientific’s favor as companies that can reliably secure and deliver power capacity are becoming increasingly valuable in a market where development bottlenecks are tightening.
Core Scientific Inc. operates digital Bitcoin mining and HPC infrastructure. The company uses its own fleet of computers, called miners, to earn Bitcoin for its own account and also provides hosting services for Bitcoin mining and HPC customers at US-based operational data centers.
1. Sandisk Corporation (NASDAQ:SNDK)
Number of Hedge Fund Holders: 114
Sandisk Corporation (NASDAQ:SNDK) is one of the Best Up and Coming AI Stocks to Buy Now. Analysts have been getting increasingly more bullish on Sandisk Corporation (NASDAQ:SNDK). Over the past week, Morgan Stanley and Susquehanna raised price targets on SNDK with Outperform ratings.
On June 3, Morgan Stanley raised the price target from $1,100 to $1,750 and maintained an Outperform rating on the shares. The firm’s bullish case is based on a persistent memory shortage with “no quick fix.” Morgan Stanley expects tight supply conditions to last two to three years or longer. This is seen as a meaningful tailwind for memory companies like Sandisk. Despite memory stocks already delivering strong performance in both 2025 and 2026, the firm believes the rally still has room to run.
Earlier, Susquehanna also raised the price target on SNDK from $2,000 to $3,250 with a Buy rating. The firm noted that its industry checks point to very strong pricing momentum. For instance, the Q2 DRAM average selling prices are trending up 50% to 60% quarter-over-quarter, slightly ahead of the 50% consensus expectation, while NAND pricing remains equally impressive, tracking up 75% to 100%. As a result of the strong prices, Susquehanna has raised estimates across its memory manufacturer coverage.
Sandisk Corporation is involved in the development, manufacture, and provision of storage devices and solutions based on NAND flash technology. The company’s products include solid-state drives, memory cards, and USB flash drives.
