10 Best Industrial Stocks Benefiting from the Data Center Boom

7. Cummins Inc. (NYSE:CMI)

Potential Upside: 7.13%

Number of Hedge Fund Holders: 67

Cummins Inc. (NYSE:CMI) is one of the best industrial stocks benefiting from the data center boom. On May 7, Citi increased its price target on Cummins to $770 from $710 while maintaining a Buy rating on the stock, following the company’s strong financial performance in the first quarter, according to a report by TheFly.

Citi attributed the upward price target adjustment to the higher estimates. On May 4, Cummins reported a 3% increase in revenues for the first quarter of the year to $8.4 billion.

The company also announced that it is raising its full-year 2026 revenue guidance to be up 8% to 11%. Cummins Chair and CEO Jennifer Rumsey said the higher 2026 outlook for revenue and profitability is driven by strengthened demand across several key markets. She added:

“We see North America on-highway markets improving, while demand for data center power generation across a range of our products continues to outpace expectations. Through the remainder of 2026, we are well-positioned to deliver strong financial performance, invest in future growth and return cash to shareholders.”

According to 26 analyst ratings compiled by CNN, Cummins has an average price target of $728, a 7.13% upside from the current price of $679.55.

Cummins Inc. (NYSE:CMI) is engaged in the design, manufacture, distribution, and service of a broad portfolio of power solutions. Its products range from diesel, natural gas, electric, and hybrid powertrains and powertrain-related components, among others.