In this article, we will look at the 10 Best Performing Data Center Stocks So Far in 2026.
Data center stocks are getting more attention as the AI buildout keeps spreading beyond chips into the physical systems needed to run them. The theme spans data center REITs and colocation operators, networking and connectivity, storage infrastructure, power and thermal management, custom silicon, servers, and enterprise hardware.
BlackRock says “AI compute investments have risen massively” and expects “approximately 148GW of additional power capacity” to be needed by the end of the decade to satisfy data center demand. The firm also says “Power is the gate to that cash flow,” which helps explain why investors are looking closely at power equipment, cooling, grid, and infrastructure names alongside the usual semiconductor leaders. Fidelity adds that it sees “no prospect of flagging AI spending,” and expects “graphics processing units, high-speed memory, and data centers” to remain integral in 2026 and beyond. Cohen & Steers makes the real estate angle more direct, saying “Data centers led the market to start the year” as data center REITs benefited from “rising hyperscaler spending tied to AI and cloud demand.”
Against this backdrop, the best-performing data center stocks so far in 2026 deserve a closer look. With that in mind, let’s take a look at the 10 Best Performing Data Center Stocks So Far in 2026.
Our Methodology
We used the Finviz screener to identify data center stocks that rallied by at least 20% year-to-date. We then 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.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Equinix, Inc. (NASDAQ:EQIX)
On May 5, 2026, Deutsche Bank raised the firm’s price target on Equinix, Inc. (NASDAQ:EQIX) to $1,207 from $1,042 previously and maintained a Buy rating on the shares following the company’s Q1 results.
Truist also raised the firm’s price target on Equinix, Inc. to $1,215 from $1,127 while reiterating a Buy rating. The firm said it has become increasingly constructive on Equinix’s ability to deliver approximately 10% compound annual growth in funds from operations per share over the next several years.
Last month, Equinix, Inc. reported Q1 adjusted funds from operations of $10.79 per share, versus the consensus estimate of $10.89. Revenue totaled $2.44B, versus the consensus estimate of $2.51B. CEO Adaire Fox-Martin said the company continued to see strong demand across its business, supported by customer spending on AI, cloud, and networking infrastructure solutions. Management also highlighted double-digit recurring revenue growth alongside margin improvement during the quarter.
Equinix raised its 2026 AFFO guidance range to $42.31-$43.11 per share from its prior outlook of $41.93-$42.74. Fox-Martin added that the company’s infrastructure platform continues to support enterprise innovation while strengthening Equinix’s broader market position.
Equinix, Inc. operates digital infrastructure and interconnected data center ecosystems that support cloud, networking, and enterprise connectivity services globally.
9. Digital Realty Trust, Inc. (NYSE:DLR)
On May 18, 2026, Digital Realty Trust, Inc. (NYSE:DLR) announced the opening of BCN1, its first data center in Barcelona. Located in the Sant Adria de Besos innovation district, the facility is expected to provide up to 14 MW of planned capacity and was designed to support connectivity across a broad range of network providers. The company said the site is strategically positioned near major global connectivity routes.
On May 14, 2026, Truist raised the firm’s price target on Digital Realty Trust, Inc. to $208 from $207 and maintained a Buy rating on the shares following the company’s Q1 results. The firm said Digital Realty continues to benefit from several long-term industry tailwinds, including AI infrastructure demand, cloud adoption, and digital transformation spending, while also operating in an environment marked by historically low vacancy rates and ongoing power and grid constraints in key markets.
Last month, Digital Realty Trust, Inc. reported Q1 core FFO of $2.04 per share, versus the consensus estimate of $1.94. Revenue totaled $1.635B, versus the consensus estimate of $1.6B. CEO Andy Power said the company saw further acceleration in data center demand during the quarter, supported by record leasing activity for interconnection deployments above one megawatt and the largest hyperscale lease in the company’s history. Management added that Digital Realty is continuing to expand hyperscale AI-focused capacity in the U.S., grow its connectivity-focused portfolio across global markets, and broaden its capital base to support future growth initiatives.
Digital Realty Trust, Inc. owns, develops, and operates data centers through its operating partnership subsidiary, Digital Realty Trust, L.P.
8. Cisco Systems, Inc. (NASDAQ:CSCO)
On May 14, 2026, Rosenblatt raised the firm’s price target on Cisco Systems, Inc. (NASDAQ:CSCO) to $150 from $100 and maintained a Buy rating on the shares following the company’s latest quarterly results. The firm said Cisco’s Networking segment, which it views as the company’s most important business, showed strong acceleration during the quarter, while Security stabilized and Collaboration and Observability lagged. Rosenblatt added that even if gross margin pressure increases due to hyperscale customer mix shifts or higher input costs, Cisco still has enough operational flexibility to sustain operating margins above 34%.
UBS analyst David Vogt also raised the firm’s price target on Cisco Systems, Inc. to $132 from $95 and maintained a Buy rating. UBS pointed to Cisco’s decision to raise its FY26 AI order target to $9B, saying strong AI-related demand should continue supporting revenue growth while helping offset broader margin pressures tied to product mix and costs.
On May 13, 2026, Cisco Systems, Inc. reported fiscal Q3 adjusted EPS of $1.06, versus the consensus estimate of $1.04. Revenue totaled $15.8B, versus the consensus estimate of $15.56B. Chair and CEO Chuck Robbins said Cisco delivered record quarterly revenue alongside broad-based demand strength across its product portfolio, reflecting growing demand for technologies tied to AI connectivity and security infrastructure. Management added that Cisco believes it is well-positioned to serve as critical infrastructure for the AI era, supported by its existing technology portfolio, customer relationships, and continued pace of innovation.
Cisco Systems, Inc. develops and sells networking, security, and internet infrastructure technologies across global markets.
7. Vertiv Holdings Co (NYSE:VRT)
On May 20, 2026, TD Cowen analyst Lance Vitanza raised the firm’s price target on Vertiv Holdings Co (NYSE:VRT) to $387 from $347 and maintained a Buy rating on the shares. The firm noted that Vertiv left its 2026 guidance unchanged while updating its long-term outlook to include 20%-22% five-year organic revenue CAGR and adjusted operating margins above 27% by 2030. TD Cowen said it views both the long-term revenue and margin targets as conservative.
RBC Capital analyst Deane Dray also raised the firm’s price target on Vertiv Holdings Co to $435 from $356 and maintained an Outperform rating on the shares. RBC said Vertiv’s May 19-20 investor event is expected to highlight the company’s positioning in data center power and cooling technologies. The firm added that it expects Vertiv to grow revenue organically by at least 20%-25% annually through 2030 while generating 25%-30% incremental margins, supporting what RBC views as sector-leading EPS growth potential.
Last month, Vertiv Holdings Co reported Q1 adjusted EPS of $1.17, versus the consensus estimate of $1.01. Revenue totaled $2.65B, in line with the consensus estimate. CEO Giordano Albertazzi said data center infrastructure requirements continue to evolve rapidly as customers prioritize deployment speed, efficiency, and optimized infrastructure design. Management added that Vertiv’s investments in manufacturing capacity, technology, and acquisitions are contributing to market share gains as customers increasingly demand faster deployment timelines, higher reliability, and integrated infrastructure services. Albertazzi also said the company believes it is well-positioned to support increasingly dense and large-scale AI infrastructure deployments.
Vertiv Holdings Co designs and manufactures critical infrastructure technologies and services for data centers, communication networks, and industrial environments globally.
6. Ciena Corporation (NYSE:CIEN)
On May 20, 2026, Ciena Corporation (NYSE:CIEN) highlighted its role in the launch of Cirion Technologies’ new Network-as-a-Service, or NaaS, platform across Latin America. The offering is designed to support enterprise connectivity across data centers, hybrid cloud environments, and AI infrastructure through automated, programmable networking. Ciena said the deployment combines its optical networking platforms, routing and switching products, and automation software with Cirion’s regional fiber and carrier-neutral data center infrastructure spanning more than 105,000 kilometers. The initial rollout focuses on automated data center connectivity, allowing enterprise customers to order, configure, and activate high-capacity network services through a self-service portal with near real-time provisioning.
Fernando Capella, Regional Director for CALA South at Ciena, said the company’s optical technology, routing and switching products, and automation software are helping transform Cirion’s infrastructure into a programmable network platform capable of scaling similarly to cloud services. He added that automation is becoming increasingly important as networks evolve to support growing demand tied to cloud connectivity, AI workloads, and real-time enterprise operations.
On May 18, 2026, Citi analyst Atif Malik raised the firm’s price target on Ciena Corporation to $658 from $345 and maintained a Buy rating on the shares ahead of the company’s fiscal second-quarter report scheduled for June 4. Citi said its expectations for Ciena’s fiscal 2027 and 2028 growth have increased materially due to rising demand for optical connectivity. The firm also cited improving profitability and stronger long-term sales growth expectations for the target increase.
Ciena Corporation provides networking hardware, software, and services to telecommunications and cloud infrastructure operators globally.
5. Cummins Inc. (NYSE:CMI)
On May 11, 2026, Evercore ISI raised the firm’s price target on Cummins Inc. (NYSE:CMI) to $845 from $694 and maintained an Outperform rating on the shares.
Truist also raised the firm’s price target on Cummins Inc. to $815 from $730 while reiterating a Buy rating. The firm pointed to the company’s Q1 earnings beat and noted that sales increased 3% year over year, supported by stronger demand in global power generation markets, particularly from data center-related activity.
Earlier in May, Cummins Inc. reported Q1 EPS of $4.71. Revenue totaled $8.4B, versus the consensus estimate of $8.37B. The quarter included charges tied to the sale of the company’s low-pressure fuel cell business totaling $199M, or $1.44 per diluted share. Chair and CEO Jennifer Rumsey said Cummins delivered strong operational performance during the quarter, led by record results in its Power Systems segment. Management highlighted continued strong demand tied to data center backup power infrastructure, while North American truck markets also began recovering from cyclical lows. Rumsey added that the company’s decision to divest its low-pressure fuel cell business reflects lower expectations for hydrogen adoption and an effort to focus investment spending and reduce losses within the Accelera segment.
Cummins Inc. provides power solutions globally through its Engine, Distribution, Components, Power Systems, and Accelera segments.
4. Power Integrations, Inc. (NASDAQ:POWI)
On May 8, 2026, Susquehanna raised the firm’s price target on Power Integrations, Inc. (NASDAQ:POWI) to $85 from $70 and maintained a Positive rating on the shares. The firm updated its model following the company’s Q1 results and said it expects Power Integrations to continue executing on growing opportunities tied to AI data center infrastructure.
Deutsche Bank analyst Ross Seymore also raised the firm’s price target on Power Integrations, Inc. to $65 from $45 while maintaining a Hold rating on the shares.
On May 7, 2026, Power Integrations, Inc. reported Q1 EPS of 25c, versus the consensus estimate of 23c. Revenue totaled $108.3M, versus the consensus estimate of $106.7M. CEO Jen Lloyd said the company benefited from improving market demand during the quarter while continuing to focus on high-voltage power solutions across industrial and infrastructure applications. Management highlighted 23% year-over-year growth in industrial revenue, driven by demand across renewable energy, battery storage, home automation, and automotive applications. Lloyd added that the company continues to see growing demand tied to electric vehicles and AI data centers, both directly through its PowiGaN technology and indirectly through rising pressure on power grids that support investment in renewables, battery storage, and DC transmission infrastructure.
Power Integrations, Inc. designs and manufactures analog and mixed-signal integrated circuits used in high-voltage power conversion applications.
3. Dell Technologies Inc. (NYSE:DELL)
On May 19, 2026, Dell Technologies Inc. (NYSE:DELL) unveiled a new suite of storage, compute, cyber resilience, and automation offerings aimed at modern data center infrastructure. The company introduced Dell PowerStore Elite, an AI-enabled storage platform combining updated hardware, software, and modular upgrade capabilities. Dell said the platform delivers three times the performance and density of prior generations, supports up to 5.8 petabytes of effective capacity within a single 3U appliance, and includes a 6:1 data reduction guarantee. The system is built on industry-standard E3 flash architecture and is designed to allow infrastructure upgrades without downtime or data migration. Dell also announced its 18th generation PowerEdge servers, which the company said can deliver up to 70% higher performance and support 13-to-1 consolidation through advanced air and liquid cooling systems. Dell PowerStore Elite is expected to become available in July, while the Dell PowerEdge M9825, R9825, and R9815 servers are scheduled for release in the second half of 2026.
On May 18, 2026, Dell Technologies Inc. also introduced Dell Deskside Agentic AI as part of the Dell AI Factory with NVIDIA. The offering is designed to help workgroups deploy and scale agentic AI workflows locally while reducing reliance on cloud-only infrastructure. Dell added that NVIDIA OpenShell runtime support has now been extended across the Dell AI Factory platform, spanning deskside workstations and Dell PowerEdge XE servers under a unified security and policy layer.
Dell Technologies Inc. develops and sells enterprise infrastructure, computing, storage, and IT solutions globally.
2. Marvell Technology, Inc. (NASDAQ:MRVL)
On May 20, 2026, Oppenheimer analyst Rick Schafer raised the firm’s price target on Marvell Technology, Inc. (NASDAQ:MRVL) to $200 from $170 and maintained an Outperform rating on the shares ahead of quarterly results. The firm said it expects upside to both Q1 results and Q2 guidance, driven by continued strength in AI networking and custom ASIC demand as cloud service providers keep expanding data center infrastructure builds.
Wells Fargo also raised the firm’s price target on Marvell Technology, Inc. to $195 from $135 while reiterating an Overweight rating. The firm acknowledged that Marvell’s valuation at more than 30-times projected 2027 earnings creates a more demanding setup ahead of results, though it still sees enough upside from the ramp of AWS Trainium deployments, growing XPU attach opportunities, and sustained interconnect demand to support a bullish stance on the stock.
Earlier, Melius Research analyst Ben Reitzes raised the firm’s price target on Marvell Technology, Inc. to $220 from $140 and maintained a Buy rating on the shares. The firm said it has become incrementally more constructive on AI and memory semiconductor companies, raising long-term estimates across several AI infrastructure and semiconductor names it describes as “bottleneck stocks,” including Micron Technology, Advanced Micro Devices, Intel, and Marvell. Melius added that it continues to believe semiconductor companies will capture a larger share of long-term market value growth relative to traditional software firms and other mega-cap technology companies.
Marvell Technology, Inc. develops semiconductor solutions focused on data infrastructure spanning cloud data centers, networking, and edge computing markets.
1. Western Digital Corporation (NASDAQ:WDC)
On May 18, 2026, Western Digital Corporation (NASDAQ:WDC) announced the integration of post-quantum cryptography into its latest high-capacity Ultrastar UltraSMR hard disk drives, marking a new step in storage security for next-generation AI infrastructure. The company said the move comes as AI systems increasingly shift from compute-focused architectures toward persistent data storage environments supporting training, inference, and broader AI interactions. Western Digital added that the new drives are currently undergoing qualification with multiple hyperscale customers, reflecting early interest in quantum-resilient storage technologies.
Earlier in May, Baird raised the firm’s price target on Western Digital Corporation to $450 from $310 and maintained an Outperform rating on the shares. The firm said its updated model, following the company’s Q1 results, points to another wave of accelerating demand for storage infrastructure.
Last month, Western Digital Corporation reported Q3 adjusted EPS of $2.72, versus the consensus estimate of $2.39. Revenue totaled $3.34B, versus the consensus estimate of $3.25B. CEO Irving Tan said the company delivered strong execution during the quarter, with revenue growth across all end markets alongside expanding gross and operating margins. Gross margin exceeded 50% during the period. Management also announced a 20% increase in the quarterly cash dividend to $0.15 per share, citing confidence in the durability of the business. Tan added that AI workloads ranging from training and inference to agentic and physical AI continue driving persistent storage demand, benefiting HDD deployments.
Western Digital Corporation develops and manufactures hard disk drive-based storage devices and data infrastructure solutions globally.
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