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.
Source:Pixabay
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.
8. Alibaba Group Holding Ltd (NYSE:BABA)
Stock Upside Potential as of July 22: 26.22%
Number of Hedge Fund Holders: 125
Alibaba Group Holding Ltd (NYSE:BABA) is one of the top AI stocks with huge upside potential. On July 21, research firm Benchmark reiterated a Buy rating on the stock and a $176 price target. The bullish stance follows a series of investments the company has made to strengthen its food delivery business.
While the investments are likely to trigger near-term margin pressure, they should counter JD.com’s entry and pressure in the segment. According to Benchmark, Alibaba is in a strong financial position to scale its operations and adapt to any market changes.
Consequently, the firm maintains that the recent market pullback presents a buying opportunity. That’s because Alibaba’s position as a leader in GenAI and cloud infrastructure remains unchanged. In addition, the company’s long-term prospects remain intact as it continues to reposition its e-commerce strategy through a more integrated retail ecosystem.
Alibaba Group Holding Ltd (NYSE:BABA) is a Chinese technology company best known for its e-commerce platforms. Its Artificial Intelligence and data intelligence units streamline the use of data and optimize scenarios to power new retail. It also boasts AI-driven innovations, including personalized shopping recommendations, smart logistics, AI-powered customer service, fraud detection, and intelligent business analytics.
7. Elastic N.V. (NYSE:ESTC)
Stock Upside Potential as of July 22: 27.22%
Number of Hedge Fund Holders: 52
Elastic NV (NYSE:ESTC) is one of the top AI stocks with huge upside potential. On June 24, the company announced that its Elastic Security achieved 100% protection in AV-Comparatives Business Security Test. It was the only security solution to achieve 100% protection in both Real-World Protection and Malware Protection Tests.
The 100% protection score highlights the solution’s ability to provide businesses with effective protection against threats and reduce the likelihood of data breaches. Elastic’s threat detection engine was incredibly successful in detecting and removing malware, aggressively battling the ever-evolving malware landscape, which led to the company achieving a perfect score in the Malware Protection Test.
“Achieving 100% in both categories of the AV-Comparatives’ Business Security Test signifies the effectiveness of our security solution and our commitment to helping businesses defend against today’s threats,” said Mike Nichols, vice president, Product Management, Security at Elastic.
Elastic NV (NYSE:ESTC) is a company that leverages AI to enhance its search, observability, and security solutions. They offer an AI-powered platform that allows users to harness the power of search and generative AI to find answers in real-time, using all their data at scale.
6. SentinelOne, Inc. (NYSE:S)
Stock Upside Potential as of July 22: 26.76%
Number of Hedge Fund Holders: 44
SentinelOne, Inc. (NYSE:S) is one of the top AI stocks with huge upside potential. On July 17, the company announced a strategic partnership with Abstract Security to integrate its Singularity™ Platform with Abstract’s real-time data pipeline, aimed at transforming cybersecurity operations. This collaboration enhances threat detection, reduces alert noise, and streamlines operations using AI-driven analytics, while offering no-code integration and scalable migration for organizations looking to modernize their security stack.
By enabling data filtering before ingestion, the joint solution cuts storage and processing costs while improving detection accuracy. Abstract’s standardized feeds ensure high-quality data inputs for SentinelOne’s AI models, positioning the company more competitively in the SIEM market and helping enterprises shift away from outdated infrastructure with greater confidence and security agility.
SentinelOne, Inc. (NYSE:S) is a global cybersecurity company that provides AI-powered solutions to detect, prevent, and respond to cyber threats across endpoints, cloud environments, and identity systems. Its flagship Singularity Platform delivers autonomous protection and includes features like Purple AI, a generative AI security agent, along with tools for SIEM, vulnerability management, and threat intelligence.
5. NICE Ltd. (NASDAQ:NICE)
Stock Upside Potential as of July 22: 33.69%
Number of Hedge Fund Holders: 23
Nice Ltd (NASDAQ:NICE) is one of the top AI stocks with tremendous upside potential. On July 10, Citizens JMP reiterated a Market Perform rating on the stock and a $300 price target. The positive stance follows the company securing an $8.5 million award from the Federal Aviation Administration.
The award comes on the heels of the company’s artificial intelligence and Self-Service annual recurring revenue rising to $208 million in the first quarter, following a 39% year-over-year increase. Amid the rise, Nice has also inked a strategic partnership with Amazon Web Services to enhance AI-powered customer service solutions.
It’s also poised to integrate AWS’s generative AI services into NICE platforms. The robust revenue growth and strategic partnerships underscore Nice’s focus on AI and international development.
Nice Ltd (NASDAQ:NICE) is a software application company that provides cloud platforms for AI-driven digital business solutions. It focuses on customer experience, digital transformation, and financial crime compliance. It also provides solutions for recording customer interactions, managing digital evidence, and ensuring financial compliance.
4. DigitalOcean Holdings, Inc. (NYSE:DOCN)
Stock Upside Potential as of July 22: 36.51%
Number of Hedge Fund Holders: 20
DigitalOcean Holdings, Inc. (NYSE:DOCN) is one of the top AI stocks with huge upside potential. On July 9, the company launched DigitalOcean GradientAI Platform. The managed service allows developers to build artificial intelligence applications by combining data with foundation models.
Previously known as GenAI Platform, the new service allows users to deploy generative AI capabilities without managing infrastructure. Developers can create AI applications that leverage foundation models from Anthropic, Meta, Mistral, and OpenAI on the new DigitalOcean platform. Additionally, it facilitates seamless integration with third-party APIs and agent routing, enabling connections with other GenAI agents.
“We built DigitalOcean GradientAI because generative AI can be complex – and DigitalOcean has always focused on making the complex simple,” said Bratin Saha, Chief Product and Technology Officer at DigitalOcean.
DigitalOcean GradientAI Platform also comes with customization features such as guardrails designed to block sensitive information. Its launch comes as digital-native enterprises explore ways to integrate generative capabilities into their operations.
DigitalOcean Holdings, Inc. (NYSE:DOCN) provides cloud infrastructure and tools to support AI development, focusing on simplifying the process for businesses. It also offers GPU-powered virtual machines, known as GPU Droplets, and a managed Kubernetes service for AI/ML workloads.
3. Verint Systems Inc. (NASDAQ:VRNT)
Stock Upside Potential as of July 22: 37.55%
Number of Hedge Fund Holders: 19
Verint Systems Inc. (NASDAQ:VRNT) is one of the top AI stocks with huge upside potential. On July 2, Evercore ISI reiterated ‘In Line’ rating on the stock with a $23 price target. The stance comes amid reports that the company is a potential acquisition target for private equity firm Thoma Bravo.
According to Evercore ISI, Verint Systems’ refusal to comment on the reported talks affirms the current discussions are purely speculative. The acquisition talk comes on the heels of the leader in customer experience automation delivering solid first-quarter results. Analysts insist that the company is benefiting from the adoption of artificial intelligence among its clients.
Verint Systems Inc. (NASDAQ:VRNT) has sought to position itself as an AI-forward company. It utilizes AI to drive customer experience (CX) automation and enhance customer engagement. It also offers AI-powered bots and solutions that aim to improve customer interactions, lower costs, and deliver measurable ROI.
2. Rezolve AI (NASDAQ:RZLV)
Stock Upside Potential as of July 22: 109.26%
Number of Hedge Fund Holders: 8
Rezolve AI (NASDAQ:RZLV) is one of the top AI stocks with tremendous upside potential. On July 21, the company confirmed that its platform is well-positioned to support stablecoin transactions following the passing of the GENIUS Act.
The passing of the GENIUS Act is welcome, as Rezolve AI has carved a niche in offering artificial intelligence-powered solutions that enhance customer engagement while optimizing revenue. Its platform delivers tools that utilize AI to improve the digital experience and decision-making processes.
“The GENIUS Act is expected to transform stablecoins from speculative assets into regulated digital dollars,” said Daniel M. Wagner, CEO of Rezolve AI. “Tether’s commitment to compliance is a milestone, and Rezolve believes it is ready to connect this new liquidity to the real economy.”
The Rezolve AI Brain Suite platform is already integrated into Microsoft Azure and Google Cloud infrastructure to support wallet-based payments. The Microsoft and Google integrations enable enterprise-grade scalability and deployment, therefore exposing the company to a $30 trillion market globally.
Rezolve AI (NASDAQ:RZLV) is a pure-play artificial intelligence (AI) company that develops proprietary Large Language Models (LLMs) tailored for the retail sector. Its Brain Suite of AI solutions helps retailers deepen customer engagement, streamline operations, and boost sales with scalable AI-driven tools.
1. HIVE Digital Technologies Ltd. (NASDAQ:HIVE)
Stock Upside Potential as of July 22: 211.89%
Number of Hedge Fund Holders: 7
HIVE Digital Technologies Ltd. (NASDAQ:HIVE) is one of the top AI stocks with huge upside potential. On July 21, H.C. Wainwright reiterated a ‘Buy’ rating on the stock and a $6 price target. The research firm remains optimistic about the company’s long-term prospects, buoyed by its rapid hash rate expansion and growth in the high-performance computing business.
The company has more than doubled its deployed hash rate in less than six months to 12.5 EH/s at its data center in Paraguay. Hive Digital management has already embarked on an ambitious plan to strengthen the hash rate to 18 EH/s by the end of August and 25 EH/s by November. The expansion positions it to ramp up bitcoin mining operations to capitalize on the soaring prices.
Hive Digital has also acquired a 7.2 MW data center in Toronto as it seeks to expand its high-performance computing capacity by 3.5 times. The expansion is expected to enhance the company’s annualized HPC revenues to approximately $100 million upon full deployment.
Initially focused on cryptocurrency mining, HIVE Digital Technologies Ltd. (NASDAQ:HIVE) is transitioning into the AI sector by leveraging its existing infrastructure of powerful servers. Its expertise in running high-performance computing infrastructure positions it to provide green infrastructure solutions for the AI revolution.
While we acknowledge the potential of HIVE Digital Technologies Ltd. (NASDAQ:HIVE) as an investment, 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 HIVE and that has 100x upside potential, check out our report about this cheapest AI stock.
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