In this article, we look at the 10 Best Stocks to Buy for Next-Gen Data Centers.
Next-generation data centers are becoming one of the clearest physical bottlenecks behind the AI buildout. The shift is no longer just about adding more cloud capacity. AI workloads are pushing operators toward denser server racks, more advanced GPUs and custom accelerators, high-bandwidth memory, faster networking, liquid cooling, and more resilient power systems. The International Energy Agency expects global data center electricity consumption to roughly double from 485 TWh in 2025 to about 950 TWh by 2030, with AI-focused data centers growing even faster over the period.
The investment case has also widened beyond chipmakers. Reuters reported in April 2026 that the four largest U.S. cloud companies were on track to spend around $600 billion on AI this year, while Schneider Electric’s recent results showed how demand is flowing into power equipment, server racks, and cooling systems. At the same time, U.S. electricity use is expected to reach record highs in 2026 and 2027, partly due to AI data centers and crypto operations. Against that backdrop, the best next-generation data center stocks are not only the companies making accelerators, but also those supplying the memory, networking, electrical, thermal, and server infrastructure needed to keep the AI factory running.
A new data center facility in Plano, Texas. Photo from CoreWeave
Methodology
For this article, we reviewed financial media coverage of companies tied to next-generation data center infrastructure, including AI accelerators, custom chips, networking, high-bandwidth memory, servers, power systems, and cooling solutions. We shortlisted stocks that appeared repeatedly across these sources and ranked them based on frequency of mention, relevance to the data center buildout theme, and recent business momentum.
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10. Dell Technologies Inc. (NYSE:DELL)
Dell Technologies Inc. (NYSE:DELL) is one of the best stocks to buy for next-gen data centers. On April 22, Boost Run LLC announced a $1.44 billion purchase agreement with Dell Technologies to support enterprise demand for AI compute and storage infrastructure. The agreement is intended to provide Boost Run with certainty regarding its hardware and software as it scales capacity across its colocation footprint and fulfills long-term client commitments. Boost Run is a “leading provider of scalable cloud infrastructure purpose-built for enterprise AI and high-performance computing workloads.”
The deal fits Dell’s role as a practical supplier of AI infrastructure rather than only a traditional server vendor. Boost Run said the expanded partnership also includes coordinated infrastructure deployment programs and a deeper financing relationship with Dell Financial Services, helping align capital deployment with customer contract timelines. Dell’s May 7 update with AMD adds to that angle: its PowerEdge XE7745 and R7725 servers will support AMD Instinct MI350P PCIe GPUs starting in July 2026, allowing enterprises to run generative and agentic AI inside existing data center infrastructure without a redesign.
Dell Technologies Inc. provides servers, storage, networking, PCs, software, and infrastructure solutions for enterprises, cloud providers, governments, and other customers.
9. Eaton Corporation plc (NYSE:ETN)
Eaton Corporation plc (NYSE:ETN) is one of the best stocks to buy for next-gen data centers. On May 5, the company reported record first-quarter 2026 sales of $7.5 billion, up 17% from the prior-year period, while organic sales rose 10% and its Electrical Americas segment posted record sales of $3.6 billion, up 20% year over year. The strongest data-center signal came from orders: Eaton said Electrical Americas’ twelve-month rolling average orders rose 42% organically, driven by data-center momentum, while Electrical sector backlog increased 48% from the prior year.
The update supports Eaton’s role in the physical infrastructure layer of AI data centers, where power distribution, grid connection, cooling, and modular deployment are becoming more important as AI facilities push toward higher density and faster buildout timelines. Eaton said Electrical Americas data-center orders were up approximately 240% in Q1, while data-center revenue rose about 50% from the prior-year period. The company also highlighted the closing of the Boyd Thermal acquisition, which adds liquid-cooling capabilities, and its collaboration with NVIDIA on the Eaton Beam Rubin DSX platform for grid-to-chip AI factory infrastructure.
Eaton Corporation plc (NYSE:ETN) provides intelligent power management products and systems for data center, utility, industrial, commercial, aerospace, residential, and mobility markets.
8. Vertiv Holdings Co (NYSE:VRT)
Vertiv Holdings Co (NYSE:VRT) is one of the best stocks to buy for next-gen data centers. On May 6, Hut 8 said its 1 GW Beacon Point AI data center campus in Texas would move ahead with a 15-year lease covering 352 MW of IT capacity, with Vertiv named as one of the Tier 1 counterparties supporting the delivery model alongside American Electric Power and Jacobs. Hut 8 said the site will be designed around NVIDIA’s DSX reference architecture for gigawatt-scale AI infrastructure, placing Vertiv inside a large AI factory project rather than a generic data-center buildout.
Vertiv’s own recent updates also support the theme. On April 27, the company acquired Strategic Thermal Labs, a specialist in advanced liquid-cooling technologies, to strengthen its engineering capability around cold-plate design, server-side liquid cooling, and high-density thermal validation for AI and high-performance computing workloads. On April 22, Vertiv reported Q1 2026 net sales of $2.65 billion, up 30% year over year, and said the Americas region grew 44% organically, driven by strong data-center demand.
Vertiv Holdings Co provides critical digital infrastructure products and services, including power management, thermal management, racks, monitoring systems, and lifecycle services for data centers and other mission-critical facilities.
7. Micron Technology, Inc. (NASDAQ:MU)
Micron Technology, Inc. (NASDAQ:MU) is one of the best stocks to buy for next-gen data centers. On May 12, the company announced that it had sampled 256GB DDR5 registered dual in-line memory modules to key server ecosystem partners. The module is built on Micron’s 1-gamma DRAM technology and is capable of speeds up to 9,200 MT/s, which the company said is more than 40% faster than modules currently in volume production.
The announcement fits the next-generation data center theme because AI systems are increasingly constrained not only by accelerator supply but also by memory capacity, bandwidth, power use, and thermal limits. Micron said the module uses advanced packaging, including 3D stacking and through-silicon vias, to combine multiple memory dies in a single module. A single 256GB module can also reduce operating power by more than 40% compared with two 128GB modules, which matters as AI data centers try to increase server density without pushing past power and cooling limits. Micron is validating the module across current and next-generation server platforms, with the goal of accelerating production deployment for customers building AI and high-performance computing infrastructure at scale.
Micron Technology, Inc. provides memory and storage products, including DRAM, NAND, NOR, high-bandwidth memory, server memory, SSDs, and related solutions for data centers, AI, cloud, consumer, mobile, automotive, and industrial markets.
6. Arista Networks, Inc. (NYSE:ANET)
Arista Networks, Inc. (NYSE:ANET) is one of the best stocks to buy for next-gen data centers. On May 5, the company reported Q1 2026 revenue of $2.71 billion, up 35.1% year over year, and guided for Q2 revenue of about $2.8 billion. CEO Jayshree Ullal said Arista is positioned at the “confluence” of secure client-to-campus-to-cloud and AI networking, which aligns with the company’s role, as AI data centers require faster, lower-latency, and more reliable network fabrics.
The update also highlighted Arista’s XPO high-density liquid-cooled pluggable optics, which are designed for next-generation AI data centers. Arista said XPO can reduce networking racks by up to 75% and save up to 44% of floor space compared with traditional pluggable optics, while enabling shorter cable runs and lower-power AI scale-up interconnect technologies. That matters because AI clusters are increasingly limited not only by compute, but by the bandwidth, power, cooling, and physical footprint needed to connect large GPU systems efficiently.
Arista Networks, Inc. provides cloud networking, data center switching, routing, campus networking, AI networking, automation, analytics, and security software for large enterprises, cloud, AI, and service provider environments.
5. Marvell Technology, Inc. (NASDAQ:MRVL)
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the best stocks to buy for next-gen data centers. On April 22, the company announced the acquisition of Polariton Technologies, a developer of high-speed, low-power plasmonics-based silicon photonics devices. Marvell said the deal strengthens its optical technology portfolio by adding advanced modulation capabilities for next-generation coherent and optical interconnect platforms. The company also said AI workloads are driving exponential growth in bandwidth demand, while data center architectures are moving toward 3.2T connectivity and beyond.
Photo from Oracle website
The acquisition fits Marvell’s broader push into optical connectivity for AI infrastructure. In February, Marvell completed its acquisition of Celestial AI, whose Photonic Fabric technology is designed to support high-bandwidth, low-latency connectivity across large-scale AI deployments. Marvell said Celestial AI expands its optical connectivity capabilities for next-generation AI and cloud data center architectures, with initial revenue expected in the second half of fiscal 2028. The combination gives Marvell a clearer role in the shift from copper-heavy designs toward optical interconnects as AI clusters scale across racks and data centers.
Marvell Technology, Inc. provides data infrastructure semiconductor solutions, including custom silicon, optical interconnect products, networking chips, storage controllers, security processors, and connectivity technologies for cloud, AI, enterprise, carrier, automotive, and industrial markets.
4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best stocks to buy for next-gen data centers. On April 16, Reuters reported that TSMC raised its annual revenue forecast and said it would increase capital spending this year to meet demand for advanced AI chips. The company expects 2026 revenue to grow more than 30% in U.S. dollar terms, above its prior forecast of close to 30%, while capital expenditure is expected to come in at the high end of its earlier $52 billion to $56 billion range.
The update supports TSMC’s role as the manufacturing layer behind AI data centers, where demand for GPUs, custom accelerators, and advanced packaging depends on leading-edge wafer capacity. Reuters said TSMC is expanding 3-nanometer wafer capacity across Taiwan, the U.S., and Japan, with greater mass-production capacity expected over 2027 and 2028. TSMC also forecast second-quarter revenue of $39 billion to $40.2 billion, compared with $30.1 billion a year earlier and $35.9 billion in the first quarter.
Taiwan Semiconductor Manufacturing Company Limited is a semiconductor foundry that manufactures advanced chips for customers across AI, high-performance computing, smartphones, automotive, IoT, and other end markets.
3. Advanced Micro Devices Inc. (NASDAQ:AMD)
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best stocks to buy for next-gen data centers. On May 7, the company introduced its AMD Instinct MI350P PCIe GPUs to enable enterprises to deploy generative and agentic AI within existing data center infrastructure. AMD said the MI350P cards are dual-slot accelerators for standard air-cooled servers and are designed to run inference within current rack, power, and cooling environments rather than requiring a full infrastructure redesign.
The launch fits AMD’s broader push to compete in AI data center compute beyond traditional CPUs. Dell Technologies said its PowerEdge XE7745 and R7725 servers will support AMD Instinct MI350P PCIe GPUs starting in July 2026, expanding the Dell AI Platform with AMD for enterprises running AI workloads on premises. AMD’s latest results also showed momentum in the segment: on May 5, the company reported Q1 2026 Data Center revenue of $5.8 billion, up 57% year over year, driven by strong EPYC processor demand and the continued ramp of AMD Instinct GPU shipments.
Advanced Micro Devices, Inc. develops CPUs, GPUs, adaptive computing products, AI accelerators, embedded processors, and related software for data centers, PCs, gaming, industrial, automotive, and communications markets.
2. Broadcom Inc. (NASDAQ:AVGO)
Broadcom Inc. (NASDAQ:AVGO) is one of the best stocks to buy for next-gen data centers. On May 5, the company announced VMware Cloud Foundation 9.1, describing it as a secure and cost-effective infrastructure platform for production AI workloads. Broadcom said the platform supports inference and agentic AI applications through an AI- and Kubernetes-native private cloud architecture, with integrated security and mixed compute support across AMD, Intel, and NVIDIA hardware.
The update fits the next-generation data center theme because AI infrastructure is moving beyond raw accelerator purchases into operational platforms that can manage cost, security, utilization, and scale. Broadcom said VCF 9.1 can reduce server costs by up to 40% through intelligent memory tiering, lower storage TCO by up to 39%, cut Kubernetes operational costs by up to 46%, and support 4x faster cluster upgrades with 2x higher fleet capacity. The platform also includes support for multi-tenant AI isolation, Arista Universal Cloud Network interoperability, and NVIDIA ConnectX-7 and BlueField-3 networking for high-speed AI workloads.
Broadcom Inc. provides semiconductor and infrastructure software solutions, including custom AI accelerators, Ethernet switching, optical connectivity, storage, broadband, wireless, security, and enterprise infrastructure software products.
1. NVIDIA Corporation (NASDAQ:NVDA)
NVIDIA Corporation (NASDAQ:NVDA) is one of the best stocks to buy for next-gen data centers. On May 18, the company said its first Vera CPU systems had been delivered to Anthropic, OpenAI, SpaceXAI, and Oracle Cloud Infrastructure. NVIDIA described Vera as its first custom CPU, purpose-built for agentic AI workloads, including tool-calling, orchestration, reinforcement learning, data analytics, agent sandboxing, and long-context state management.
The launch fits NVIDIA’s effort to shape a full AI data center architecture, not just sell GPUs into it. Vera has 88 custom Olympus cores, 1.2 TB/s of memory bandwidth, and 50% faster per-core performance under full load, according to NVIDIA. The company said Oracle Cloud Infrastructure plans to deploy hundreds of thousands of Vera CPUs beginning in 2026, making OCI the first cloud provider to deploy Vera at hyperscale. NVIDIA also said Vera is part of its broader co-design stack alongside Rubin GPUs, BlueField 4 DPUs, Spectrum-X, and MGX rack architecture, with Vera serving as the host processor for Vera Rubin NVL72 systems.
NVIDIA Corporation develops GPUs, CPUs, AI accelerators, networking products, software, and full-stack computing platforms for data centers, gaming, professional visualization, automotive, robotics, and other markets.
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