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 top 10 hidden AI stocks to buy. 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.
8. Tempus AI Inc. (NASDAQ:TEM)
Number of Hedge Fund Holders: 33
Tempus AI Inc. (NASDAQ:TEM) is one of the top 10 hidden AI stocks to buy. On May 31, Tempus AI launched the next generation of Lens, an agentic AI platform designed to accelerate oncology drug development. By integrating Tempus’ massive library of longitudinal real-world data, oncology foundation models, and computational infrastructure, the platform provides an end-to-end environment for research and trial design. It is already being used by 19 of the top 20 global biopharma companies.
The platform uses specialized “co-scientist” agents that allow users to propose complex biological hypotheses in plain language and receive targeted analysis plans. Once a plan is approved, these agents execute code-backed analyses against over 8.5 million de-identified patient records, delivering robust results in minutes. This process significantly reduces the time and manual expertise previously required for such tasks.
Lens aims to solve the “navigation problem” in drug development by streamlining workflows (from trial design to biomarker validation) into a single, transparent interface. By providing interactive, shareable reports and allowing for instant auditing of underlying analytical logic, the platform empowers biopharma teams to make critical decisions more efficiently and reduce wasted capital.
Tempus AI Inc. (NASDAQ:TEM) is a healthcare technology company that uses AI to advance precision medicine. It achieves this through its massive libraries of clinical and genomic data. Pharmaceutical companies use their products to improve drug discovery processes while physicians use them to personalize treatments for their patients.
7. Sprinklr Inc. (NYSE:CXM)
Number of Hedge Fund Holders: 34
Sprinklr Inc. (NYSE:CXM) is one of the top 10 hidden AI stocks to buy. On June 10, Sprinklr announced the launch of LLM Insights, a new AI-native capability within its Unified-CXM platform. This tool is designed to help enterprises measure, benchmark, and influence how their brands are represented, perceived, and recommended within AI-generated search results.
As Generative AI platforms increasingly shape the consumer journey, many organizations face a visibility gap where they are misrepresented or excluded from synthesized AI answers. LLM Insights addresses this by providing real-time data on a brand’s AI mention rate, share of voice, and competitive positioning, connecting these metrics to tangible outcomes like web traffic and conversions.
The platform differentiates itself by using real-world customer conversation data rather than synthetic prompts to generate its insights. By integrating directly into existing workflows, the tool enables teams to detect and correct brand distortions early and take active steps to improve their presence in influential AI-driven recommendations.
Sprinklr Inc. (NYSE:CXM) provides enterprise cloud software products. It enables organizations to do marketing, advertising, research, care, sales, and engagement across modern channels, including social, messaging, chat, and text, through its unified customer experience management software platform. The company uses AI to unify and automate customer experience management across digital channels.
6. Ambarella Inc. (NASDAQ:AMBA)
Number of Hedge Fund Holders: 35
Ambarella Inc. (NASDAQ:AMBA) is one of the top 10 hidden AI stocks to buy. On May 29, Hanwha and Ambarella announced a long-term agreement for the sourcing and co-development of edge AI technology. Valued at over $800 million in potential revenue, this decade-long partnership is one of the largest in Ambarella’s history and marks a significant milestone in the edge AI semiconductor market.
The collaboration focuses on integrating Ambarella’s edge AI systems-on-chip and software across Hanwha’s diverse portfolio, including robotics, industrial automation, video security, and life sciences. By aligning their technology roadmaps, the companies aim to accelerate product development cycles and scale new categories of AI-enabled devices.
While Hanwha Vision will maintain control over its proprietary Wisenet SoC, the partnership complements its existing R&D by incorporating Ambarella Inc.’s (NASDAQ:AMBA) AI inference, image processing, and video encoding capabilities. This combined approach is designed to enhance their collective market leadership in Proactive Vision Intelligence solutions and provide scalable tools for global developers.
Ambarella Inc. (NASDAQ:AMBA) builds semiconductors, SOCs, and software to facilitate physical and edge AI, as well as automation functions.
While we acknowledge the potential of AMBA 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 AMBA and that has 100x upside potential, check out our report about the cheapest AI stock.
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