In this article, we will take a detailed look at the Top 10 AI Stocks With Huge Upside Potential.
The artificial intelligence boom is far from over. That’s the sentiment echoed on Wall Street despite President Donald Trump’s Tariffs posing significant dangers. Jonathan Gray of Blackstone insists that there is more gas in the tank due to heightened demand for data center usage.
“I think this trend is powerful. I think it will continue,” the firm’s president and chief operating officer told CNBC’s” Squawk on the Street.
While chip export restrictions between the US and China are slowing things down, there are tremendous opportunities for growth given the massive demand in the US. The US lessening its restrictions and allowing US companies to sell some of their chips to China is a positive development that affirms market growth.
“We don’t sell them our best stuff, not our second best stuff, not even our third best. The fourth one down, we want to keep China using it. We want to keep having the Chinese use the American technology stack, because they still rely upon it,” said Commerce Secretary Howard Lutnick.
While there have been concerns that tech giants are pulling back investments on data centers, that appears not to be the case. According to John Carrafiell, co-CEO of BGO, a global real estate investment manager, what’s happening is simply a strategic reallocation of data center investments, with tech giants planning to spend hundreds of billions on AI infrastructure.
With that in mind, let’s look at the Top 10 AI Stocks With Huge Upside Potential.
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Our Methodology
To compile the list of the Top 10 AI Stocks With Huge Upside Potential, we scanned US equity markets focusing on companies with significant exposure to artificial intelligence and data centers. We focused on AI and data center companies with significant upside potential and popularity among elite hedge funds. Finally, we ranked the stocks in ascending order based on their upside potential.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Top 10 AI Stocks With Huge Upside Potential
10. Equinix, Inc. (NASDAQ:EQIX)
Stock Upside Potential as of July 22: 23.18%
Number of Hedge Fund Holders: 70
Equinix, Inc. (NASDAQ:EQIX) is one of the top AI stocks with huge upside potential. On July 15, the company entered into a strategic partnership with Accelsius, a leader in advanced data center cooling solutions. Consequently, the company plans to integrate Accelsius’ proprietary NeuCool IR80 system to enhance cooling in its data centers.
The integration of the advanced cooling technology, the NeuCool IR80 system, will enable Equinix to reduce data center consumption and enhance GPU performance. The cooling system is to be deployed at Equinix’s Co-Innovation Facility in Ashburn, providing a real-world demonstration of their advanced cooling capabilities.
The NeuCool IR80 system stands out in allowing 6-8°C warmer inlet water temperature compared to other technologies. The technology will address the growing challenge of high-density hardware, particularly GPUs, which are essential for AI and machine learning workloads.
“Liquid cooling is revolutionizing how data centers cool powerful, high-density hardware,” said Pawel Wlodarczak, Innovation Director and Global Design & Construction at Equinix. “By working with companies like Accelsius in our Co-Innovation Facility we are able to help the industry continue to iterate and innovate on high-density cooling solutions – such a critical aspect of the data center.”
Equinix, Inc. (NASDAQ:EQIX) is a global digital infrastructure company that provides data center and interconnection services. It provides the physical and virtual infrastructure needed for businesses to connect and exchange data, enabling digital transformation and hybrid multicloud deployments.
9. Marvell Technology, Inc. (NASDAQ:MRVL)
Stock Upside Potential as of July 22: 24.32%
Number of Hedge Fund Holders: 73
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the top AI stocks with huge upside potential. On July 15, Oppenheimer reiterated that it is one of its top stock picks, well-positioned to deliver solid financial results driven by a ramp-up in AI infrastructure investments.
Oppenheimer expects Marvell Technology to benefit from hyperscalers scaling up data, artificial intelligence, and data centers at an unprecedented pace. Likewise, it expects the company to capitalize on the top four cloud providers, fueling demand for high-speed networking, custom accelerators, and GPUs.
The research firm believes Marvell Technology’s artificial intelligence chips are gaining traction as power and cooling demands continue to rise.
Marvell Technology, Inc. (NASDAQ:MRVL) is a semiconductor company that specializes in data center infrastructure solutions. It provides semiconductor solutions for data centers, enterprise networking, and carrier infrastructure. Its products include custom application-specific integrated circuits (ASICs), electro-optics, Ethernet solutions, fiber channel adapters, processors, and storage controllers.