12 Best Data Center Stocks to Buy Right Now

9. Broadcom Inc. (NASDAQ:AVGO)

Stock Upside Potential: 24.97%

Number of Hedge Fund Holders: 202

Broadcom Inc. (NASDAQ:AVGO) is one of the best data center stocks to buy right now. On April 14, Broadcom Inc. (NASDAQ:AVGO) and Meta announced a long‑term partnership to build custom AI chips and networking systems for Meta’s growing data centers.

The deal will run through 2029 and start with more than 1 gigawatt of computing power, expanding to multiple gigawatts over time. Broadcom’s technology will support Meta’s MTIA accelerators, providing faster, more efficient infrastructure for AI features across apps like WhatsApp, Instagram, and Threads. This collaboration makes Broadcom a key supplier in Meta’s plan to scale its next‑generation AI data centers worldwide.

On April 8, Broadcom Inc. (NASDAQ:AVGO) moved to strengthen fraud prevention by leveraging machine learning to uncover risk patterns beyond existing controls.

Arcot Smart Ruleset is the company’s new adaptive 3-D Secure (3DS) ruleset engine, powered by machine learning, that replaces manual fraud rule writing with optimized fraud logic. The system is designed to operate as a self-driving car for fraud detection, leveraging trained, advanced machine learning models to scale the defense against machine-speed fraud.

Powered by a consortium of over 5,500 financial institutions, the Arcot Smart Ruleset provides a “satellite view” of threats worldwide. It also leverages machine learning to analyze real-time signals in milliseconds, making it easier to stop fraud earlier in the lifecycle.

Broadcom expects the new system to help replace manual logic with precision decisioning. In addition, it should absorb the costly, complex burden of maintaining global regulatory compliance.

Broadcom Inc. (NASDAQ:AVGO) is a critical infrastructure technology provider in the data center market, focusing on high-performance networking, storage connectivity, and custom AI silicon (ASICs). Its technology serves as the “plumbing” that moves massive volumes of data between servers and storage, particularly for hyperscale cloud providers and artificial intelligence (AI) clusters.