On February 9, Jay Woods of Freedom Capital Markets, Douglas Boneparth of Bone Fide Wealth, and Alex Kantrowitz of Big Technology together joined CNBC to discuss market rotation, tech volatility, and AI capex. Despite the broader market strength, the tech sector remains a primary source of uncertainty. Kantrowitz explained that while there is a general belief that AI will succeed, the market lacks clarity on where the value will ultimately settle: with chip manufacturers, model developers, or application consultants. This ambiguity leads to wild swings in stock prices as investors attempt to project outcomes 2 or 3 years into the future.
Additionally, Woods pointed out that the software sector has hit six-year lows relative to the S&P 500. He viewed this sell-off as overdone and suggested a short-term swing trade opportunity as key players prepare to report earnings. The scale of AI investment is further contextualized by comparing current corporate spending to historic government milestones. Kantrowitz referenced data showing that the AI capex from the four largest tech giants now exceeds the cost of the Apollo Moon program and is rivaled only by the Louisiana Purchase. With over $600 billion currently being deployed, he compared this era to the dot-com boom. He cited Amazon’s recent CapEx, which exceeded expectations by $50 billion, as evidence of the pressure companies feel to invest in AI agents and chatbots to ensure their survival.
That being said, we’re here with a list of the 8 under-the-radar AI stocks to buy.
Our Methodology
We sifted through financial media reports and stock screeners to compile a list of hidden AI stocks. We then selected 8 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on February 10.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
8 Under-the-Radar AI Stocks to Buy
8. Lemonade Inc. (NYSE:LMND)
Number of Hedge Fund Holders: 32
Lemonade Inc. (NYSE:LMND) is one of the under-the-radar AI stocks to buy. On January 16, Citizens increased the price target for Lemonade to $85 from $80 while maintaining an Outperform rating. The firm expects Q4 2025 results to show lighter catastrophe losses and limited mark-to-market impacts, with investor attention focused on pricing trends despite weakness in property lines.
The firm noted that while property pricing is declining, returns remain strong and casualty lines continue to see solid rate increases, indicating a market in transition rather than one that is broadly soft.
On January 14, Cantor Fitzgerald raised the price target for Lemonade Inc. (NYSE:LMND) to $92 from $85 with an Overweight rating. The firm noted that an initial positive outlook on insurance brokers seems premature and overly optimistic, as near-term fundamentals are expected to decline before showing improvement. While the subgroup remains of interest, the firm anticipates negative consensus organic growth revisions in the interim.
Lemonade Inc. (NYSE:LMND) provides various insurance products in the US, Europe, and the UK. The company offers renters & homeowners, building, car, pet, and life insurance products, as well as landlord insurance products.
7. Oscar Health Inc. (NYSE:OSCR)
Number of Hedge Fund Holders: 40
Oscar Health Inc. (NYSE:OSCR) is one of the under-the-radar AI stocks to buy. On January 9, UBS upgraded Oscar Health to Neutral from Sell and raised the price target to $17 from $12. The firm believes that Oscar’s exchange enrollment is holding up better than feared despite the expiration of enhanced subsidies. UBS suggests the shares are fairly priced at this level.
On January 5, Barclays analyst Andrew Mok also upgraded Oscar Health to Equal Weight from Underweight and increased the price target to $18 from $13. The firm anticipates that managed care stocks will benefit in 2026 from potential margin expansion and an investor rotation away from artificial intelligence stocks toward de-rated underperformers.
Furthermore, Andrew Mok suggested that Oscar Health Inc. (NYSE:OSCR) is attractively priced because the market is currently over-discounting the negative impacts of expiring subsidies.
Oscar Health Inc. (NYSE:OSCR) is a healthcare technology company in the US that offers health plans to individuals, families, employees, and small group markets.
6. Super Micro Computer Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 42
Super Micro Computer Inc. (NASDAQ:SMCI) is one of the under-the-radar AI stocks to buy. On February 4, Mizuho analyst Vijay Rakesh raised the firm’s price target on Super Micro to $33 from $31 while keeping a Neutral rating. Rakesh informed that the company reported strong results, though competition and margin pressure continue to be challenges.
On the same day, Needham lowered the price target for Super Micro to $40 from $51 with a Buy rating. The firm attributed the company’s FQ2 2026 earnings beat to a major customer’s data center deployment and noted that its Data Center Building Block Solutions is gaining momentum among key customers. The reduced price target reflects multiple compression within the AI hardware sector.
Barclays also cut the price target for Super Micro Computer Inc. (NASDAQ:SMCI) to $38 from $43 with an Equal Weight rating. In its review of the company’s earnings, Barclays highlighted that December quarter results surpassed expectations for both revenue and earnings.
Super Micro Computer Inc. (NASDAQ:SMCI), together with its subsidiaries, develops and sells server and storage solutions based on modular and open-standard architecture in the US, Asia, Europe, and internationally.
5. Modine Manufacturing Company (NYSE:MOD)
Number of Hedge Fund Holders: 49
Modine Manufacturing Company (NYSE:MOD) is one of the under-the-radar AI stocks to buy. On February 9, DA Davidson analyst Matt Summerville increased the firm’s price target for Modine to $265 from $255 and kept a Buy rating following a FQ3 2026 earnings beat. Summerville noted that the company’s data center funnel, win rates, and order bookings remain exceptional. Additionally, multiple potential long-term agreements are expected as key hyperscalers look to secure capacity, which in turn de-risks future inbound orders.
Furthermore, on February 6, B. Riley also increased the price target for Modine Manufacturing Company (NYSE:MOD) to $250 from $190 while maintaining a Buy rating on the shares. The decision was made as the firm adjusted its estimates following the company’s FQ3 earnings report.
The firm noted that the expansion of data center capacity and the spin-off of the Performance Technologies segment transform Modine into a high-volume, pure-play climate solutions manufacturer with higher-margin products.
Modine Manufacturing Company (NYSE:MOD) designs, engineers, tests, manufactures, and sells mission-critical thermal solutions in the US, Canada, Italy, Hungary, the UK, China, and internationally.
4. Iren Limited (NASDAQ:IREN)
Number of Hedge Fund Holders: 52
Iren Limited (NASDAQ:IREN) is one of the under-the-radar AI stocks to buy. On February 6, Cantor Fitzgerald lowered the price target for Iren to $82 from $136 with an Overweight rating. The firm noted that revenue and adjusted EBITDA for the company’s FQ2 2026 declined quarter-over-quarter due to lower Bitcoin prices and a reduced operating hash rate, which was anticipated as the company transitions capacity from Bitcoin mining to AI compute. The firm viewed the subsequent after-hours decline in share price as a buying opportunity.
In FQ2, Iren Limited (NASDAQ:IREN) reported revenue of $184.7 million, which was a 23% decrease from the previous quarter, driven by lower Bitcoin mining revenue and a reduction in operating hashrate. This decline was partially offset by growth in AI cloud revenue following the commissioning of new GPUs at the Prince George site.
The company is strategically pivoting from Bitcoin mining toward AI compute, targeting an ARR (annualized revenue run rate) of $3.4 billion by the end of 2026. Currently, Iren has approximately $2.3 billion in ARR under contract, including a major $9.7 billion AI agreement with Microsoft that is expected to ramp up progressively throughout the year. To support this growth, the firm has expanded its secured power capacity to over 4.5 gigawatts, including a new 1.6 gigawatt site in Oklahoma.
Iren Limited (NASDAQ:IREN) operates in the vertically integrated data center business in Australia and Canada. It owns and operates computing hardware, as well as electrical infrastructure and data centers.
3. Celestica Inc. (NYSE:CLS)
Number of Hedge Fund Holders: 62
Celestica Inc. (NYSE:CLS) is one of the under-the-radar AI stocks to buy. On January 30, TD Cowen raised the price target for Celestica to C$330 from C$305 and kept a Hold rating. This adjustment was made as the firm indicated that they observed an improved risk-to-reward profile following the stock’s pullback after Q4 2025 results.
However, on the same day, Citi analyst Atif Malik reduced the price target for Celestica Inc. (NYSE:CLS) to $338 from $375 while maintaining a Buy rating.
Additionally, Barclays raised its price target for the company to $391 from $359 while keeping an Overweight rating. This sentiment was announced as the firm informed investors that the company increased its fiscal year 2026 guidance by $1 billion, which is a move that the firm considers conservative and likely to be raised further throughout the year.
Celestica Inc. (NYSE:CLS), together with its subsidiaries, provides supply chain solutions in Asia, North America, and internationally. It operates through two segments: Advanced Technology Solutions and Connectivity & Cloud Solutions.
2. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 64
Bloom Energy Corporation (NYSE:BE) is one of the under-the-radar AI stocks to buy. On February 9, Mizuho analyst Maheep Mandloi raised the firm’s price target on Bloom Energy to $110 from $89 and maintained a Neutral rating following the company’s Q4 2025 earnings report. The firm expressed being impressed by Bloom’s gross margin accretion for 2026, which is attributed to cost reductions and improved capacity utilization supported by book-and-bill visibility.
A day before that, Bank of America analyst Dimple Gosai increased the firm’s price target on Bloom Energy to $71 from $39 with an Underperform rating. The firm observed a clear improvement in the company’s near-term visibility following its clean Q4 beat. However, Gosai noted that the stock is priced for a smooth multi-year ramp in shipments and margin normalization.
Furthermore, on February 6, UBS analyst Manav Gupta raised the firm’s price target on Bloom Energy Corporation (NYSE:BE) to $170 from $115 with a Buy rating as the company posted a strong beat and provided guidance that was significantly ahead of expectations.
Bloom Energy Corporation (NYSE:BE) designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the US and internationally.
1. Eaton Corporation (NYSE:ETN)
Number of Hedge Fund Holders: 72
Eaton Corporation (NYSE:ETN) is one of the under-the-radar AI stocks to buy. On February 4, RBC Capital raised the price target for Eaton to $407 from $399 with an Outperform rating. This adjustment was made as the firm noted that there was much to like regarding Eaton’s Q4 2025 earnings beat, despite management’s conservative guidance for 2026. RBC Capital added that the underlying momentum in orders and backlog suggests that Eaton’s 2026 guidance has significant beat-and-raise potential.
Morgan Stanley also raised the price target for Eaton Corporation (NYSE:ETN) to $425 from $405 with an Overweight rating on the same day. While skeptics have challenged the company’s narrative recently, demand remains strong as Q4 orders again exceeded expectations.
Although demand for its products is at an all-time high, the stock’s relative valuation dropped to multi-year lows, leading the firm to express increased confidence in the company’s ability to sustain high-single-digit organic growth over several years.
Eaton Corporation (NYSE:ETN) operates as a power management company in the US, Canada, Latin America, Europe, and the Asia Pacific. It operates through Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility segments.
While we acknowledge the potential of ETN 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 ETN and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
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