15 Best Data Center Stocks to Buy Now

6. Cisco Systems Inc. (NASDAQ:CSCO)

Market Cap: $265.1 Billion

Number of Hedge Fund Holders: 82

Cisco Systems Inc. (NASDAQ:CSCO) is one of the best data center stocks to buy now. On August 14, BofA analyst Tal Liani raised his price target on Cisco to $85 from $76 while maintaining a Buy rating. The analyst believes that Cisco’s Q4 results and FY 2026 guidance were modestly better than expected, though without any big surprises.

Liani pointed to the company’s refreshed portfolio, an infrastructure upgrade cycle driven by AI and data growth, and consistent operational execution as the key drivers of the long-term story. Following the earnings release, BofA adjusted its growth forecasts slightly higher, reinforcing its constructive view.

However, not all analysts share the same optimism. On the same day, HSBC’s Stephen Bersey downgraded Cisco to Hold from Buy, with a $69 price target. He argued that the company’s 2026 revenue outlook and slowing growth in remaining performance obligations point to fading benefits from customer restocking. While orders tied to AI infrastructure remain strong, Bersey believes broader demand softness is weighing on results, leaving the stock fairly valued at current levels.

Cisco Systems Inc. (NASDAQ:CSCO) designs, manufactures, and sells networking hardware, software, telecommunications equipment, and other high-technology services and products. The company’s offerings include routers, switches, cybersecurity solutions, and collaboration tools, serving a wide range of industries and customers globally.