In this article, we will discuss the Top 10 Hidden AI Stocks to Buy.
On July 2, Jeff Buchbinder, Chief Equity Strategist at LPL Financial, joined BNN Bloomberg to discuss the current state of the market, particularly in the wake of an AI-powered earnings surge that pushed the S&P 500 to historic highs. Buchbinder expressed optimism and noted that while analysts expected 23% earnings growth, a figure of 30% is possible given the significant upside observed in the previous quarter. He explained that the AI boom and associated massive spending are the primary drivers of this trend, with tech and AI-related companies expected to account for 60% to 65% of total earnings growth. Importantly, he pointed out that non-tech and non-AI segments of the S&P 500 are also showing potential for over 20% earnings growth, a factor he suggested investors should monitor closely.
Regarding concerns that high costs associated with AI might slow this momentum, Buchbinder acknowledged that sticky inflation and high memory prices (which tech companies consume in large quantities) may weigh slightly on margins. However, he believes that the sheer scale of spending will likely overwhelm these costs, allowing tech companies to hit their earnings targets in H2 of the year. Despite this, he advised a cautious approach, specifically noting that tech and semiconductor stocks appear out over their skis. He recommended that investors currently overweight in tech should rebalance, take profits, and wait to see how the broader AI debate unfolds over the coming weeks.
When discussing the market’s future, Buchbinder suggested rotating into unloved areas like healthcare and industrials. He described industrials as a second-tier AI play, explaining that the technology is benefiting industrial companies through both AI-driven spending and margin expansion. Regarding fears of a dot-com bubble comparison, he argued that the current sentiment is not as bullish as historical indicators suggest.
Our Methodology
We sifted through financial media reports to compile a list of the top hidden AI stocks with AI-related operations and opportunities. We 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.
Note: All data was sourced on July 6.
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).
Top 10 Hidden AI Stocks to Buy
10. One Stop Systems Inc. (NASDAQ:OSS)
Number of Hedge Fund Holders: 15
One Stop Systems Inc. (NASDAQ:OSS) is one of the top 10 hidden AI stocks to buy. On June 16, One Stop Systems announced an $8.4 million initial contract from a prominent defense and technology solutions firm. The company expects to begin shipping units this year, with revenue contributions anticipated throughout 2026.
The agreement requires the delivery of 91 high-performance 3U short-depth servers. These units are specifically engineered for signal surveillance, utilizing real-time AI analysis to process large data volumes into actionable intelligence for defense applications.
This specialized platform features a compact design, removable storage, and secure data erasure for use in space-constrained environments. One Stop Systems Inc. (NASDAQ:OSS) estimates this program could generate approximately $44 million in total revenue over the next four years, depending on future orders and funding.
One Stop Systems Inc. (NASDAQ:OSS) designs, manufactures, and markets rugged high-performance compute, high-speed switch fabrics, and storage systems for edge applications of AI and ML, sensor processing, sensor fusion, and autonomy in the US and internationally.
9. C3.ai Inc. (NYSE:AI)
Number of Hedge Fund Holders: 25
C3.ai Inc. (NYSE:AI) is one of the AI stocks on Wall Street’s radar. On June 4, C3.ai and Shell extended their multi-year collaboration to scale their enterprise predictive maintenance program globally. This expansion builds on a partnership dating back to 2018, which currently monitors over 13,000 pieces of equipment across Shell’s asset operations.
Under the new agreement, Shell will move beyond basic anomaly detection by integrating AI agent-based root cause analysis and remediation. These enhancements, powered by the C3.ai Inc. (NYSE:AI) Reliability and Agentic AI platforms on Microsoft Azure, aim to further improve operational safety, efficiency, and performance.
The collaboration underscores the shift toward fully operationalizing Enterprise AI to reduce unplanned downtime and deliver significant economic value. Microsoft highlighted the project as a key example of how secure cloud infrastructure supports high-impact AI applications at a global scale.
C3.ai Inc. (NYSE:AI) is an enterprise AI software company that builds and operates enterprise-scale AI applications and accelerates digital transformation.
