15 Best Data Center Stocks to Buy Now

4. Intel Corporation (NASDAQ:INTC)

Market Cap: $103.6 Billion

Number of Hedge Fund Holders: 91

Intel Corporation (NASDAQ:INTC) is one of the best data center stocks to buy now. On August 19, SoftBank Group announced a $2 billion investment in Intel, agreeing to purchase new shares at $23 apiece, according to a Bloomberg report. The move gives Intel a much-needed boost as it works to re-establish itself in artificial intelligence, while also expanding SoftBank’s exposure to US chipmakers.

The deal comes at a time when Intel has been struggling to catch up with Nvidia in AI processors and TSMC in manufacturing. Intel has been in discussions with the US government about potential support, including reports of the administration considering purchasing a stake.

Analysts remain divided on the rationale of the deal. Some see the transaction as a political move, while others question its immediate financial benefits for SoftBank. There were no significant changes seen in ratings, and most of the analysts remain on the sidelines, given the uncertainty over the long-term outlook.

Voicing similar concerns in an August 20 report, an analyst from Truist Securities reaffirmed his Hold rating on the stock with a $21 price target. The analyst noted that Intel’s recent capital raise provides short-term support but stressed that the company’s issues extend beyond funding.

According to the analyst, Intel is still in the midst of a turnaround, with key parts of the business needing more work before it can consistently execute. He expects this process to take time, which supports a cautious view on the stock.

Intel Corp. (NASDAQ:INTC) designs and manufactures microprocessors and semiconductor components. The company’s products are used in a wide range of computing devices, from personal computers to data centers and Internet of Things (IoT) applications.