In this article, we will look at the 15 Best Data Center Stocks to Buy Now.
A century ago, railroads and oil pipelines defined economic strength. Today, that role is played by data centers. They power every online transaction, video stream, and AI application, quietly serving as the backbone of the digital economy. What used to be global competition for shipping lanes and oil fields has shifted to building stronger semiconductor supply chains and expanding data center capacity. The race seems to be no longer fought on land or sea, but in racks of servers and the megawatts that keep them running.
Considering the scale of investment pouring into the sector, this momentum is far from slowing. According to Jones Lang LaSalle’s (JLL) Global Data Center Outlook 2025, global capacity is projected to grow by roughly 15% annually between 2023 and 2027. Yet, even with this growth, demand is expected to outpace supply.
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The strategic importance of data centers was also one of the central themes at the Qatar Economic Forum 2025. Navid Chamdia, Head of Real Estate at Qatar Investment Authority (QIA), said AI could generate as much as half of all new cloud storage demand. However, the bigger challenge will be building capacity with adequate power, infrastructure partners, and skilled labor. Doug Adams, CEO of NTT Global Data Centers, and Marc Ganzi, CEO of DigitalBridge, added that AI adoption could push total investment in data centers to $1 trillion within four years, a growth rate far faster than the expansion of cloud computing.
With these factors in mind, we now turn to the 15 best data center stocks to buy now.
A panoramic aerial view of a modern data center with high-performance computing.
Our Methodology
To compile our list of the best data center stocks, we screened U.S.-listed companies that are either pure-play data center operators or have significant exposure to the sector, leveraging ETFs, industry research, and proprietary databases. From this pool, we selected the 15 stocks most widely owned by hedge funds, based on Q1 2025 filings from Insider Monkey’s database. These names were then ranked by the number of hedge funds holding positions.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Note: All pricing data is as of market close on August 18, 2025.
15 Best Data Center Stocks to Buy Now
15. Applied Digital Corporation (NASDAQ:APLD)
Market Cap: $4.3 Billion
Number of Hedge Fund Holders: 26
Applied Digital Corporation (NASDAQ:APLD) is one of the best data center stocks to buy now. The stock has surged 114% year-to-date, fueled by accelerating demand for artificial intelligence (AI) and high-performance computing (HPC). This demand has elevated APLD’s position in the data center space and kept investor attention firmly on its growth pipeline.
That story gained an extra push on August 18, when the company unveiled plans for a $3 billion, 280-megawatt (MW) AI Factory near Harwood, North Dakota. The project, called Polaris Forge 2, will break ground in September 2025, with the first capacity expected in 2026 and full operations in early 2027. The announcement triggered a 16% rally in the stock by the end of the trading day.
Applied Digital already operates data centers in Jamestown and Ellendale, North Dakota, providing roughly 286 MW of hosting capacity. In addition, Polaris Forge 1, a 400 MW HPC campus, remains under construction and is scheduled to go live in 2025. Together, these projects significantly expand the company’s scale in an industry seeing rapid capital inflows.
Reflecting this momentum, George Sutton, an analyst from Craig-Hallum, raised his price target to $23 from $12 while keeping a Buy rating. In the note published on August 18, the analyst noted that private-market deals in the data center sector are being struck at multiples and capitalization rates that imply more upside for APLD than current trading levels suggest. In his view, the market has yet to fully price in the company’s project pipeline or the valuation benchmarks set by comparable transactions.
It is worth noting that the stock carries a beta of roughly 6.0, highlighting its high volatility. Investors may want to carefully weigh this risk before making any investment decision.
Applied Digital Corporation (NASDAQ:APLD) develops and operates digital infrastructure solutions and cloud services tailored to the HPC and AI markets across North America.
14. VNET Group Inc. (NASDAQ:VNET)
Market Cap: $2.1 Billion
Number of Hedge Fund Holders: 34
VNET Group Inc. (NASDAQ:VNET) is one of the best data center stocks to buy now. VNET is another pure-play data center operator that has seen a strong performance, up 64% year-to-date and an impressive 319% over the past year. No doubt, demand for capacity from the ever-evolving generative AI and high-performance computing (HPC) is at the core of this investor enthusiasm.
While the company is scheduled to report its results on August 21, expectations remain high, and analyst consensus is overwhelmingly positive. Analyst sentiment has been broadly supportive, indicating confidence in its investment case.
First of the two names that have recently published their optimistic reports is Yang Liu from Morgan Stanley. In a report released on July 22, the analyst maintained a Buy rating on VNET Group and raised the price target to $12 from $10.
Back in late June, Citi analyst Louis Tsang also reaffirmed his positive stance on VNET, keeping a Buy rating on the stock and a price target of $20, which is closer to the consensus high of $24. At that time, the company had raised its FY 2025 revenue and EBITDA guidance, which was already in line with Tsang’s above-consensus forecasts, reinforcing confidence in its operating momentum.
Tsang highlighted that VNET’s $50 million share repurchase could help stabilize the stock. He also cited upcoming projects such as B30, along with possible Hong Kong and C-REIT listings, as events that may drive further interest. In addition, he noted the company’s partnership with Shandong Highspeed on green power, which is expected to cut energy costs and support margin improvement for VNET and its clients.
Beyond these near-term drivers, Tsang emphasized VNET’s expansion of IDC capacity and its exposure to AI-related demand as important long-term growth levers.
Tsang’s bullish thesis has held up so far, as the stock has gained another 11% since his report. The 1-year median consensus price target for the stock stands at $12.2, which still indicates a substantial potential upside of 56% and further room for the rally to continue.
VNET Group Inc. (NASDAQ:VNET) is a leading pure-play data center provider in China, specializing in multi-carrier and multi-cloud internet data center (IDC) services.
13. GDS Holdings Ltd. (NASDAQ:GDS)
Market Cap: $48.7 Billion
Number of Hedge Fund Holders: 36
GDS Holdings Ltd. (NASDAQ:GDS) is one of the best data center stocks to buy now. On August 11, RBC Capital’s Jonathan Atkin upgraded GDS Holdings to Outperform from Sector Perform and lifted his price target to $48 from $37.
Atkin’s positive view was in part driven by the stronger monetization and valuation multiples from the company’s recent asset-backed securities and commercial real estate trust deals. He also highlighted that a potential dual-primary listing in Hong Kong could act as a meaningful catalyst, improving liquidity in the shares and helping narrow the valuation gap.
With that upgrade, analyst sentiment is overwhelmingly positive as almost all the analysts now have a Buy or equivalent rating. Earlier in mid-July, a JP Morgan analyst also upgraded the stock from Neutral to Overweight, with a higher price target of $46. He had cited the resumption of H20 chip exports to China as a reason because he believed it will support growth of the domestic data center business.
GDS Holdings Limited (NASDAQ:GDS) is a leading provider of high-performance, carrier- and cloud-neutral data center and IT infrastructure services across China and Southeast Asia. The company offers a broad range of solutions, including colocation, managed hosting, managed cloud services, and other value-added IT services.
12. CoreWeave Inc. (NASDAQ:CRWV)
Market Cap: $47.3 Billion
Number of Hedge Fund Holders: 36
CoreWeave Inc. (NASDAQ:CRWV) is one of the best data center stocks to buy now. On August 13, analysts from HSBC reiterated their Reduce rating on CoreWeave, keeping the price target at $32.
The analysts expressed caution over the company’s margin outlook, with its earnings projections sitting well below market consensus. While the Street expects CoreWeave to expand adjusted EBITDA margins to around 70% by late 2025, HSBC analysts forecast a decline to just above 60% in the second half of the year, citing weaker utilization of data center assets. That is much weaker than the 62.6% the company reported in the Q2 2025.
The analysts also questioned the likelihood of long-term margin recovery, pointing out that structural costs such as rent and power leave limited room for improvement. These costs currently account for over 20% of revenue.
In addition, the analysts pushed back on consensus assumptions around financing costs. Consensus assumes the company’s implied interest rate could decline to 8.1% by 2028 from 10.7% in the second quarter of 2025. HSBC described this assumption as too optimistic, suggesting that debt expenses will likely remain a heavier drag than investors expect.
CoreWeave Inc. (NASDAQ:CRWV) is an AI cloud-computing company that specializes in providing cloud-based graphics processing unit (GPU) infrastructure to artificial intelligence developers and enterprises.
11. Super Micro Computer Inc. (NASDAQ:SMCI)
Market Cap: $27.4 Billion
Number of Hedge Fund Holders: 40
Super Micro Computer Inc. (NASDAQ:SMCI) is one of the best data center stocks to buy now. On August 11, the company presented at the KeyBanc Capital Markets Technology Leadership Forum, where Michael Stager, SVP of Corporate Development, discussed SuperMicro’s market position and growth targets.
Stager highlighted that the company has expanded its share from 3.5% in 2021 to 22% today and now targets about one-third of the market by fiscal 2026. Revenue is projected to exceed $33 billion that year, implying growth of more than 50% from current levels, with gross margins expected in the 15–17% range.
Stager also pointed to sovereign cloud as a key growth area, citing a potential $20 billion opportunity linked to Databol. Alongside this, the company intends to add two to four large-scale customers by 2026 to strengthen its revenue base.
On the analyst activity side, on August 6, JP Morgan’s Samik Chatterjee trimmed his price target on Super Micro to $45 from $46 while keeping a Neutral rating. The adjustment came after the company’s fiscal Q4 results, which fell short of expectations.
According to Chatterjee, the shortfall was driven by tighter capital availability and hesitation from customers, both of which slowed order activity. He also noted that the quarter reflected a broader issue for Super Micro, which is that execution continues to lag the goals set by management.
Super Micro Computer Inc. (NASDAQ:SMCI) designs and builds high-performance server and storage systems used by cloud providers, enterprises, OEMs, and large data centers, as well as in telecom and edge computing.
10. Digital Realty Trust Inc. (NYSE:DLR)
Market Cap: $56.3 Billion
Number of Hedge Fund Holders: 44
Digital Realty Trust Inc. (NYSE:DLR) is one of the best data center stocks to buy now. On August 19, analysts from BMO Capital reiterated their Outperform rating on Digital Realty with a $195 price target. His decision comes even as data center stocks have recently come under pressure, which is partly attributed to rising interest rates.
Despite that, the analysts pointed out that second-quarter results across the group were broadly healthy, with estimates moving higher. Demand for data centers remains strong, pricing trends are supportive, and hyperscale customers continue to emphasize infrastructure buildouts to support AI, with sector-wide investments expected to approach $550 billion by 2026.
Against this backdrop, the analysts named Digital Realty its top pick in the space, citing confidence in the company’s ability to deliver high single-digit Core FFO growth. They highlighted that this growth outlook is supported by the company’s backlog and lease mark-to-market potential. As per their report, the analysts are currently modelling Core FFO growth of 7.7% in 2025 and 7.9% in 2026, with an opportunity to push above 10% in 2027.
Earlier on August 11, Michael Funk, an analyst from Bank of America Securities, had reaffirmed a Buy rating on the stock with a steady price target of $210.
Digital Realty Trust Inc. (NYSE:DLR) provides data center, colocation, and interconnection solutions with over 300 data centers spread across more than 25 countries.
9. Astera Labs Inc. (NASDAQ:ALAB)
Market Cap: $31.0 Billion
Number of Hedge Fund Holders: 45
Astera Labs Inc. (NASDAQ:ALAB) is one of the best data center stocks to buy now. On August 6, Needham analyst Quinn Bolton reiterated a Buy rating on Astera Labs and sharply lifted the price target to $170 from $100, which reflected his growing confidence in the company’s momentum.
Bolton pointed to Astera’s strong execution across its product portfolio as a key driver. The Scorpio, Aries, and Taurus lines have all contributed meaningfully to results, leading to a solid, better-than-expected second quarter of 2025 (results announced on August 5). The engagement metrics for the company’s Scorpio X product have been especially encouraging, with more than ten AI and cloud service providers now working with it, a sign of its technology’s expanding relevance.
The analyst also argued that Scorpio P switches, which are now in volume production and already contributing over 10% of revenue, mark a key development for the business. He also noted steady demand for Taurus Active Electrical Cables, with further growth likely as the industry shifts toward 800G AECs.
Astera Labs (NASDAQ:ALAB) is a semiconductor company that provides connectivity solutions for rack-scale AI infrastructure and data centers.
8. Equinix Inc. (NASDAQ:EQIX)
Market Cap: $75.3 Billion
Number of Hedge Fund Holders: 70
Equinix Inc. (NASDAQ:EQIX) is one of the best data center stocks to buy now. Equinix’s recent share price performance has been weak (down 18% YTD), particularly after its softer guidance in June.
That said, on August 12, 2025, Equinix (NASDAQ: EQIX) presented at the TD Cowen Communications Infrastructure Summit, where management outlined its capacity expansion plans and addressed ongoing operational challenges.
The company is shifting toward much larger builds, moving from 10 MW facilities to 30-60 MW sites, with plans for multi-hundred MW campuses. This shift is driven by demand from hyperscale and enterprise clients. Under its “Build Bolder” program, management is prioritizing larger projects and flexible models to support AI and digital infrastructure needs.
Energy supply remains a key focus. Equinix is pursuing a multi-layered approach, including on-site generation, building its substations, and working with utilities to ensure reliable power. These steps are intended to balance rising demand with capital efficiency.
On July 30, the company released a robust set of results, which JP Morgan praised in a post-results report. The analyst modestly raised his price target to $940 from $935 while reiterating an Overweight rating, and cited bookings momentum as the primary driver for his optimistic view.
More recently, analysts from Bank of America Securities and Evercore ISI also reiterated their Buy or equivalent ratings during August 11-14, with price targets of $950 and $960, respectively.
Equinix Inc. (NASDAQ:EQIX) is one of the largest third-party data center operators globally. The company focuses on colocation, interconnection, and internet connectivity.
7. Arista Networks Inc. (NYSE:ANET)
Market Cap: $173.5 Billion
Number of Hedge Fund Holders: 75
Arista Networks Inc. (NYSE:ANET) is one of the best data center stocks to buy now. On August 6, Piper Sandler analyst James Fish raised his price target on Arista Networks to $143 from $89 but kept a Neutral rating. The move followed the company’s strong Q2 results, which beat expectations across the board.
Product billings were a particular standout, accelerating to more than 50% growth despite the company already operating at significant scale. Fish pointed to broad strength in demand, from AI buildouts to cloud providers refreshing networks to 400/800G, as well as steady enterprise spending.
The analyst continues to view Arista’s long-term prospects positively but kept a Neutral rating due to valuation concerns. With the stock already rallying and trading close to past peak multiples, he sees little near-term upside unless growth stays stronger than expected.
Arista Networks Inc. (NYSE:ANET) specializes in data-driven, client-to-cloud networking solutions for large-scale AI, data center, campus, and routing environments.
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.
5. Vertiv Holdings Co. (NYSE:VRT)
Market Cap: $51.8 Billion
Number of Hedge Fund Holders: 90
Vertiv Holdings Co. (NYSE:VRT) is one of the best data center stocks to buy now. On August 11, Morgan Stanley analyst Christopher Snyder raised his price target on Vertiv Holdings (NYSE:VRT) to $165 from $125 and reiterated a Buy rating, citing stronger order trends and more favorable margin comparisons as the company heads into fiscal 2026.
Vertiv had already delivered an impressive second quarter, with full-year guidance lifted. The company closed the quarter with an $8.5 billion order backlog, which Snyder sees as a key support for growth.
The analyst highlighted that Vertiv added another $1.3 billion to backlog in the first half of 2025 while organic growth accelerated to 30%. With the business already running at close to a $3 billion quarterly revenue pace, Snyder believes Vertiv is on track to meet 2027 sales expectations even without incremental order growth.
One area of caution is margins, which have been flat through 2025. Snyder attributes this to short-term inefficiencies linked to urgent customer demand, ongoing capacity expansion, and some pricing delays in contracted data center projects. However, he expects these headwinds to ease over the next year, giving room for margins to expand again and unlocking higher operating leverage.
Although valuation is above peers, Snyder believes the premium is justified given Vertiv’s robust growth, sizable backlog, and leading position in AI-driven data center infrastructure.
Vertiv Holdings Co. (NYSE:VRT) is engaged in the design, manufacturing, and servicing of critical digital infrastructure for data centers, communication networks, and commercial and industrial environments. The company specializes in thermal management, power distribution, and backup power systems, ensuring high efficiency and reliability in mission-critical operations.
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.
3. Micron Technology Inc. (NASDAQ:MU)
Market Cap: $138.3 Billion
Number of Hedge Fund Holders: 96
Micron Technology Inc. (NASDAQ:MU) is one of the best data center stocks to buy now. Micron’s stock has surged 47% since the start of the year, and the momentum doesn’t look like it’s stopping any time soon. Supporting this view, Citi analyst Christopher Danely reiterated his Buy rating on August 20 and maintained a price target of $150, reflecting further upside of nearly 30%.
Danely’s view is based on improving profitability trends, particularly in gross margins, which he expects to reach new highs as product mix shifts toward high-bandwidth memory (HBM) and DRAM pricing benefits from accelerating AI demand.
The analyst also pointed to rising NAND demand, especially from data center customers, as another key driver of revenue growth. HBM sales have already shown strong quarter-over-quarter momentum, and he expects this to continue, putting the company on track toward a 50% gross margin target. While competition from Samsung in HBM remains a risk, Danely maintains confidence in Micron’s positioning, with his Buy rating.
Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally.
2. Advanced Micro Devices Inc. (NASDAQ:AMD)
Market Cap: $285.8 Billion
Number of Hedge Fund Holders: 97
Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the best data center stocks to buy now. On August 13, Bank of America analyst Vivek Arya reiterated a Buy rating on Advanced Micro Devices with an unchanged price target of $200. Reviewing the second-quarter CPU market, Arya highlighted AMD’s continued market share gains at Intel’s expense. His analysis was based on recent Market Research data.
AMD’s CPU revenue share rose by 120 basis points sequentially to 29.5% in Q2, building on a 300-basis-point gain through 2024. Looking ahead, Arya expects average selling price (ASP) growth to be the primary driver of further market share expansion. He forecasts AMD’s value share rising to 30-31% by 2026/2027, up from 21% in 2023 and 24% in 2024.
With AMD stock up close to 50% year-to-date, Arya sees further upside supported by PC and server strength, as well as growth in accelerators. AMD was also added to BofA’s “US 1 List”, which is the bank’s selection of top investment ideas.
Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.
1. Nvidia Corporation (NASDAQ:NVDA)
Market Cap: $4.4 Trillion
Number of Hedge Fund Holders: 212
Nvidia Corporation (NASDAQ:NVDA) is one of the best data center stocks to buy now, and the top stock in this list. Despite its large market capitalization, the stock has advanced 36% year-to-date, underscoring the strength of demand and execution. On August 21, analysts at Oppenheimer reaffirmed their Outperform rating on Nvidia with a $200 price target, just ahead of the company’s August 27 earnings release. The analysts believe that the company’s results could come in above consensus, with expectations for fiscal Q2 revenue of $45.8 billion and EPS of $1.00. For fiscal Q3, revenue estimates are of $52.8 billion and EPS of $1.19.
The analysts highlighted strong adoption of Nvidia’s NVL72 rack-scale system, now being deployed by major cloud providers. At the same time, he argued that the top four hyperscalers have lifted their 2025 capex outlook to $365 billion, which is a sharp increase from earlier forecasts. This should directly benefit Nvidia’s infrastructure business.
On the other side, China continues to be a relatively small contributor, estimated at under 5% of sales after the April H20 ban, though Nvidia still had a $16 billion H20 backlog when restrictions were introduced. The company has since secured an export license for H20 GPUs, with a 15% revenue share going to the U.S. government. The analyst expects Nvidia to offset this cost through higher pricing.
Over the coming quarters, the analysts project Nvidia’s gross margins will hold in the mid-70% range, supported by ongoing demand and a smooth ramp of the GB300 (Ultra) refresh in the third quarter. In their view, Nvidia remains the best-positioned company in AI infrastructure, backed by a strong product cycle and accelerating investments into the AI and data center space.
NVIDIA Corp. (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system-on-a-chip units (SoCs), and AI hardware and software. Its GPUs are used in gaming, high-performance computing, AI training, and inference and serve as the backbone of data center infrastructure worldwide.
While we acknowledge the potential of NVDA as an investment, 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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