In this article, we will look at the 15 Best Data Center Stocks to Buy and Hold for the Next Decade.
Data center stocks are getting more attention as the AI buildout moves beyond the chip trade and into the wider infrastructure stack. The theme includes cloud infrastructure, servers, storage, optical networking, custom semiconductors, backup power, cooling, and the mechanical and electrical systems needed to keep facilities running. For investors, the question is not only which companies benefit from the current AI cycle, but which parts of the stack remain essential as demand keeps scaling.
Fidelity says it sees “no prospect of flagging AI spending,” with “graphics processing units, high-speed memory, and data centers” expected to remain integral in 2026 and beyond. That points to a broader investment map than just the biggest chip names. BlackRock says the AI buildout is revealing “capacity constraints in many key inputs,” with “power being one of the most strained,” and estimates “approximately 148 gigawatts (GW) of additional power capacity” will be needed by the end of the decade to satisfy data center demand. Janus Henderson adds that “Supply at nearly every layer of the stack, from memory to compute to power, still cannot keep pace with demand,” while “Optical connectivity and advanced cooling systems face further strain.” In summary, the bottlenecks are spreading across the full data center supply chain.
Against this backdrop, the best data center stocks to buy and hold for the next decade are not limited to hyperscalers or semiconductor leaders. The opportunity also runs through networking, storage, power, cooling, engineering, and equipment companies that help turn AI demand into working infrastructure. With that in mind, let’s take a look at the 15 Best Data Center Stocks to Buy and Hold for the Next Decade.
Our Methodology
We used the Finviz screener to identify data center stocks with expected EPS growth of at least 30% over the next 5 years. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
15. Cummins Inc. (NYSE:CMI)
On July 2, 2026, Truist raised the firm’s price target on Cummins Inc. (NYSE:CMI) to $901 from $815 and kept a Buy rating on the shares. Truist adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. The firm sees a positive setup for Q2 earnings reports across the sector, with demand trends remaining strong and supported by secular growth tailwinds in power, data center, aerospace and defense, and infrastructure.
On June 17, Wells Fargo raised the firm’s price target on Cummins to $874 from $794 and kept an Overweight rating on the shares. Wells Fargo cited a behind-the-meter prime power award with Circe Energy for West Texas HPC data centers for Cummins’ 78L and 60L products, over a year earlier than expected. Wells Fargo also sees additional opportunities in Alberta as outlined at its conference.
On June 8, UBS upgraded Cummins to Buy from Neutral with a price target of $850, up from $565. UBS cited the improving truck market for the upgrade, along with double-digit growth in Cummins’ power business, a supportive truck outlook, and the rollout of new engines with more content. UBS said consensus estimates underappreciate Cummins’s potential upside from power and a more supportive truck cycle.
Cummins Inc. (NYSE:CMI) offers various power solutions worldwide.
14. Hewlett Packard Enterprise Company (NYSE:HPE)
On July 1, 2026, ScanSource (SCSC) announced an expanded partnership with Hewlett Packard Enterprise Company (NYSE:HPE), including HPE Juniper Networking. The expanded HPE Networking portfolio is meant to help ScanSource connect networking and security solutions for partners, with improved network performance, simplified operations, and increased efficiency for end users. ScanSource Launch Point will also support HPE’s go-to-market efforts through tailored channel programs, marketing strategies, sales expertise, and market-building capabilities. Mark Morgan, President, Specialty Technologies at ScanSource, said the next phase builds on a “strong foundation,” referring to the company’s channel relationship and the addition of HPE Juniper Networking’s solutions to ScanSource’s line card.
On June 17, HPE announced that Vultr selected HPE and NVIDIA (NVDA) for large-scale AI datacenter deployments supporting enterprise demand for private cloud and AI workloads. Vultr selected the NVIDIA GB300 NVL72 by HPE, connected with NVIDIA Spectrum-X Ethernet networking, to power next-generation AI infrastructure environments for enterprise-scale AI workloads. The deployments combine HPE’s AI factory capabilities with NVIDIA accelerated computing, networking, and software for a scalable AI platform optimized for high-performance model training and inference.
Also on June 17, HPE announced “major” advancements in its self-driving networking strategy across AI factories, data centers, and the enterprise edge. The updates include new AI data center networking, routing, Agentic AIOps, and security innovations designed to simplify operations and improve performance across distributed AI-driven environments. HPE also introduced new HPE Juniper Networking QFX Switches optimized for inferencing and scale-up architectures, deeper integration of HPE Juniper Networking data center switching and operations into HPE AI Data Center Solution, and a unified AI-native SASE platform.
Hewlett Packard Enterprise Company (NYSE:HPE) develops intelligent solutions in the United States, the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and internationally.
