12 Best Data Center Stocks to Buy Right Now

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6. Microsoft Corporation (NASDAQ:MSFT)

Stock Upside Potential: 56.52%

Number of Hedge Fund Holders: 312

Microsoft Corporation (NASDAQ:MSFT) is one of the best data center stocks to buy right now. On April 13, analysts at Bernstein touted Microsoft Corporation (NASDAQ:MSFT) due to improvements in its artificial intelligence capabilities. According to the research firm, the company is increasing capacity, with a delay of less than 6 months.

In addition, the research firm announced Microsoft’s bid to invest more in first-party apps with strong margins and to use more capacity to train models. According to Bernstein, investment in Copilots is delivering good margins and software-as-a-service AI revenue.

The company has already met its ambitious sales targets for the Copilot artificial intelligence tool. The achievement came on the back of heightened focus on paid subscriptions rather than on free bundling.

The research firm reiterated its Outperform rating and $641 price target on the stock. Bernstein expects growth in the company’s cloud unit, Azure, to accelerate in the third quarter and be stronger in the fourth quarter.

In a separate update, on April 14, Microsoft announced plans to buy about 3,200 acres of land in Cheyenne, Wyoming to build a new data center. This expansion adds to its existing facilities in the area and strengthens Southeast Wyoming’s role as a hub for technology, innovation, and job growth.

Microsoft Corporation (NASDAQ:MSFT) is a technology company that operates a massive, global network of data centers that act as the physical foundation for its cloud services, primarily Azure, Office 365, and Xbox Live. It stores, processes, and manages data for millions of customers, supporting AI infrastructure, online services, and secure computing.

While we acknowledge the potential of MSFT to grow, 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 MSFT and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Data Center Stocks to Buy Right Now.

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