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.
10. Super Micro Computer, Inc. (NASDAQ:SMCI)
Stock Upside Potential: 22.32%
Number of Hedge Fund Holders: 39
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the best data center stocks to buy right now. On April 13, Super Micro Computer Inc. (NASDAQ:SMCI) unveiled a family of compact, high-efficiency platforms designed to support real-time inferencing and business-critical workloads.
The new AMD EPYC 4005 processor-based platforms are designed to help customers deploy AI accelerator cards and dedicated workloads at the edge with improved performance, enhanced security, and reduced power consumption. Each system comes with advanced security technologies, including TPM 2.0 and AMD Secure Encrypted Virtualization (SEV) for seamless integration with POS systems, cameras, and enterprise networks.
Earlier on April 10, Super Micro also unveiled pre-configured Gold Series enterprise server solutions optimized for enterprise AI, compute, storage, and intelligent edge workloads. The Gold series comes with 25 different server systems based on the company’s proven product families, pre-configured with CPUs, GPUs, memory, and storage. The series is part of an effort to make an industry-leading server portfolio available with significantly shorter lead times.
Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance, energy-efficient server and storage systems, specializing in rack-scale Total IT Solutions for AI, cloud, and edge data centers. It provides advanced liquid cooling, high-density AI servers (powered by NVIDIA, AMD, and Intel), and full-rack integration.
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.
8. Micron Technology, Inc. (NASDAQ:MU)
Stock Upside Potential:29.15%
Number of Hedge Fund Holders: 137
Micron Technology Inc. (NASDAQ:MU) is one of the best data center stocks to buy right now. On April 8, UBS reiterated its Buy rating on Micron Technology Inc. (NASDAQ:MU), noting that it is well-positioned to benefit from continued pricing strength across DRAM and NAND memory.
Consequently, the research firm raised the stock’s price target to $535 from $510 amid strong demand for high-bandwidth memory, which is expected to drive margins higher. According to UBS, the company should capitalize on the fact that hyperscalers and original equipment manufacturers remain inclined to sign long-term agreements.
Talks around volume commitments, pre-payments, and well-defined pricing bands pave the way for Micron Technology, SK Hynix, and Samsung to rebuild premium for HBM pricing into 2027. Amid strong pricing power, UBS expects Micron Technology to deliver earnings per share of approximately $135 in 2027, compared to the street estimate of $103.
On the other hand, Micron Technology has initiated a strategic investment in SiMa.ai to support the scaling of Physical AI solutions for edge applications, including robotics and autonomous systems.
Micron Technology, Inc. (NASDAQ:MU) is an American semiconductor firm that designs and makes high-performance memory and storage products. Its key technologies—DRAM, NAND, and NOR flash—support AI, data centers, mobile, automotive, and industrial uses, under Micron and Crucial brands.
7. NVIDIA Corporation (NASDAQ:NVDA)
Stock Upside Potential: 45.03%
Number of Hedge Fund Holders: 264
NVIDIA Corporation (NASDAQ:NVDA) is one of the best data center stocks to buy right now. The company is pioneering the AI infrastructure, including GPU systems and software that power data centers for inference and training. On April 10, NVIDIA Corporation (NASDAQ:NVDA) highlighted the breakthroughs it is making to bring AI into the physical world.
Its renewed focus is on growing robots with the potential to transform industries from agriculture to manufacturing and energy. At the NVIDIA GTC conference, the company showcased a new wave of technologies that can accelerate the development of AI-powered robots.
NVIDIA Isaac GR00T is one of the open models showcased, designed to enable robots to understand natural-language instructions and perform complex multistep tasks. The company also showcased the NVIDIA Cosmos model for generating synthetic data and training robots at scale.
On the other hand, Nvidia has downplayed reports that it has been in discussions to acquire a large PC manufacturer. SemiAccurate reported that the company has been in discussions that could reshape the PC and server landscape.
NVIDIA Corporation (NASDAQ:NVDA) dominates data centers by providing the accelerated computing infrastructure required for AI, machine learning, and high-performance computing (HPC). It sells GPUs, networking hardware, and software platforms that allow companies to build, train, and deploy massive AI models, essentially turning data centers into AI factories.
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.
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