11 Best Performing Data Center Stocks to Buy Now

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1. Broadcom Inc. (NASDAQ:AVGO)

YTD Return: 49.3%

Number of Hedge Fund Holders: 156

Broadcom Inc. (NASDAQ:AVGO) is one of the best performing data center stocks to buy now. On September 16, TD Cowen analyst Joshua Buchalter reiterated a Buy rating on the stock with a $370 price target. Earlier, on September 5, he had also reaffirmed the same stance following strong performance and updates on the company’s ramp of TPU v7.

Broadcom recently confirmed a major $10 billion order after converting a key customer opportunity, underscoring its growing weight in the AI semiconductor market. Management commentary also pointed to FY26 revenue growth in AI well above earlier forecasts, with the segment expected to more than double year-over-year.

According to the analyst, Broadcom may face some margin pressure as its AI business grows, but the deal is large enough to add substantially to the total profit of the company. CEO Hock Tan’s contract has also been extended through 2030, which also provides visibility for the company’s long-term strategy.

Broadcom remains well-positioned to capitalize on accelerating demand for custom silicon, supported by a robust order book and expanding AI product cycle.

Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies a wide range of semiconductor and infrastructure software solutions.

While we acknowledge the potential of AVGO as an investment, 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 AVGO and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 11 Best Low-Priced Technology Stocks to Buy Right Now and 11 Best Emerging Technology Stocks to Buy Right Now.

Disclosure: None.

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