5 Best Data Center Stocks to Buy Right Now

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In this article, we will list the 5 Best Data Center Stocks to Buy Right Now. Please visit 12 Best Data Center Stocks to Buy Right Now if you would like to see the extended list and the methodology behind it.

5. Credo Technology Group Holding Ltd (NASDAQ:CRDO)

Stock Upside Potential: 59.20%

Number of Hedge Fund Holders: 69

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the best data center stocks to buy right now. On April 13, Credo Technology Group Holding Ltd (NASDAQ:CRDO) announced a definitive agreement to acquire DustPhotonics, a developer of Silicon Photonics Photonic Integrated Circuit (PIC) technology for optical transceivers. The deal is valued at $750 million in cash and 0.92 million shares of Credo stock, with additional contingent consideration of up to 3.21 million shares tied to financial milestones.

Founded in 2017 and based in Israel, DustPhotonics specializes in Silicon Photonics PICs spanning 400G, 800G, and 1.6T, with a roadmap to 3.2T. The company employs about 70 people and operates a fabless model, making it a strategic fit for Credo’s connectivity solutions in AI, cloud, and hyperscale networks.

5 Best Data Center Stocks to Buy Right Now

The acquisition will bring DustPhotonics’ technology in‑house, enhancing Credo’s portfolio of optical transceivers, DSPs, and photonics products. Credo expects the combined portfolio to generate over $500 million in optical revenue by fiscal 2027 and be accretive to non‑GAAP EPS.

The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and customary conditions, marking a significant expansion of Credo’s role in next‑generation optical networking.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a semiconductor company that provides high-speed connectivity solutions for data center, AI, and enterprise networking markets. They develop chipsets, specialized cables, and IP that increase bandwidth, reduce power consumption, and improve data transfer speeds for AI infrastructure, hyperscalers, and optical networking.

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