In this article, we explore the 12 Best Data Center Stocks to Buy Right Now.
The ongoing data center boom, driven by rapid advances in artificial intelligence, continues to gain momentum. This trend is clear as Wall Street banks increasingly compete to finance AI-focused data centers, with recent deals totaling tens of billions of dollars and reflecting rising land and electricity costs.
Investment banks led by Morgan Stanley, Goldman Sachs, and JPMorgan have already integrated teams across disciplines as they look to play a crucial role in data center construction. According to Citigroup, the data center build-out could require $3 trillion by 2030.
Since March of last year, Citi has handled more than $75 billion of data center construction capital, leading to the build-out of 6.1 gigawatts of IT capacity. Likewise, the sheer scale of AI build-out has already started to exhaust cash reserves of some of the biggest tech giants.
Goldman Sachs has already formed Capital Solutions Group, tasked with bringing together origination structure and capital distribution for data centers.
“We’re elbow to elbow with the bankers that cover sponsors so that we can ensure a direct line between our origination efforts and distribution efforts to financial sponsors,” said John Greenwood, a partner who serves as global head of the infrastructure and real asset finance group within Capital Solutions.
Investors are also increasingly turning their attention to companies with significant exposure to data center development and operation. That’s because the segment is highly profitable and growing rapidly, despite high entry barriers.
While the data center market was valued at $243 billion in 2024, it is projected to reach $585 billion in 2032 while growing at a compound annual growth rate of 11.7%. The sector is also profitable, with established participants posting a return on equity of about 30% due to steep barriers to entry.
With that in mind, let’s take a look at some of the best data center stocks to buy right now.
Our Methodology
To compile our list of the best data center stocks to buy right now, we screened U.S.-listed companies that either operate data centers directly or have significant exposure to the sector, using a combination of ETF holdings, industry research, and proprietary databases to ensure a comprehensive selection of firms positioned to benefit from the growing demand for cloud, AI, and digital infrastructure. From the list, we focused on stocks with upside potential of more than 20%, and that are popular among elite hedge funds in Q4 2025. Finally, we ranked the stocks based on their upside potential as of April 13.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Best Data Center Stocks to Buy Right Now
12. Applied Materials, Inc. (NASDAQ:AMAT)
Stock Upside Potential: 20.34%
Number of Hedge Fund Holders: 111
Applied Materials Inc. (NASDAQ:AMAT) is one of the best data center stocks to buy right now. On April 10, analysts at Wolfe Research touted Applied Materials Inc. (NASDAQ:AMAT)’s competitive edge in the burgeoning DRAM market. They raised the stock’s price target to $500 from $450 while maintaining an Outperform rating.
The bullish stance comes on the heels of the company reiterating that DRAM will be the fastest-growing segment in 2026. In return, the research firm expects the company’s DRAM revenue to increase by 34% in calendar year 2027. The increase would be driven by the company’s strong position in deposition and conductor etch.
In addition, Wolfe Research expects Applied Materials’ NAND business to deliver a 10% increase in Calendar year 2027. The much lower growth compared to DRAM is due to the company’s weaker position in the segment relative to its peers.
On the other hand, MoffettNathanson lowered its price target on the stock to $214 from $231 but reiterated a Buy rating. The lower price target aligns with reduced valuation multiples across the company’s business segments.
On April 8, Applied Materials announced two new chipmaking systems, the Applied Producer Precision Selective Nitride PECVD and Endura Trillium ALD. These tools are designed for producing 2nm and smaller gate all around transistors used in advanced AI and hyperscale data center chips, offering atomic level precision to shrink transistors further.
Applied Materials, Inc. (NASDAQ:AMAT) is the global leader in materials engineering solutions, providing the equipment, services, and software used to manufacture semiconductor chips and advanced displays. They enable chipmakers to create smaller, faster, and more energy-efficient electronics, serving as a foundational technology provider for AI and consumer electronics.
11. Microchip Technology Incorporated (NASDAQ:MCHP)
Stock Upside Potential: 21.97%
Number of Hedge Fund Holders: 61
Microchip Technology Incorporated (NASDAQ:MCHP) is one of the best data center stocks to buy right now. On April 14 2026, Microchip Technology Incorporated (NASDAQ:MCHP) introduced the dsPIC33AK256MPS306 Digital Signal Controllers to its dsPIC33A family, targeting AI servers, data centers, automotive, and industrial systems. These compact devices combine high‑resolution control, fast analog performance, and post‑quantum cryptography, helping reduce design complexity and accelerate time to market for power conversion, motor control, and intelligent sensing applications.
Built on a 200 MHz 32‑bit core with advanced analog integration, the new DSCs deliver precise real‑time control loops for high‑efficiency systems, while offering secure boot, firmware updates, and cryptographic support for modern server and industrial designs. With broad connectivity options and functional safety compliance, Microchip positions the dsPIC33AK256MPS306 family as a versatile solution for next‑generation AI and data center infrastructure.
On April 13, Microchip Technology Incorporated inked a strategic collaboration with Sunny Smartlead to expand the Automotive SerDes Alliance Motion Link (ASA-ML) ecosystem. Sunny Smartlead is to introduce the Advanced Driver-Assistance Systems (ADAS) camera modules built on Microchip’s VS700 family of ASA-ML devices. The introduction is to enable faster, simpler, and more cost-effective camera development for the automotive industry.
The integration of Microchip’s ASA-ML serializer technology and Sunny Smartlead’s camera module will also make it easier for automotive OEMs to develop secure, high-speed, and standardized ADAS camera solutions for Software-Defined Vehicles (SDVs).
Similarly, on April 9, Microchip Technology Inc. (NASDAQ:MCHP) entered into a manufacturing agreement with Everspin Technologies. The two are joining forces to expand production capacity for magnetoresistive random access memory and tunnel magnetoresistive sensor products.
The 10-year agreement centers on a Microchip fabrication facility in Oregon. Everspin is to maintain intellectual property and manufacturing processes, while Microchip Technology is to provide foundry services from its expandable manufacturing capacity.
Microchip Technology Incorporated (NASDAQ:MCHP) is a leading semiconductor company that designs, manufactures, and sells smart, connected, and secure embedded control solutions. Its products, including microcontrollers (MCUs), analog chips, FPGAs, and memory, are used in billions of devices across the automotive, industrial, consumer, aerospace, and computing markets.
