In this article, we will take a look at the 5 Best Data Center Hardware Stocks to Invest in. For a deeper discussion and an extended list, please see the 7 Best Data Center Hardware Stocks to Invest in.
5. Eaton Corporation plc (NYSE:ETN)
On April 8, Eaton Corporation plc (NYSE:ETN) invested over $30 million in U.S. production, constructing a switchgear facility in Bellevue, Nebraska. The investment is to meet high demand from AI data center customers. The company stated that the facility will give preference to speed and quality for medium-voltage equipment use in power distribution systems.
Separately, on April 13, Citi lifted Eaton Corporation plc (NYSE:ETN)’s price target to $464 from $435. It retained a Buy rating on the stocks and modified industrial sector expectations for Q1. Citi believes “gradually improving” manufacturing fundamentals can improve profit momentum.
The firm sees 7-9% organic growth in 2026 with segment margins of 24.6-25.0%. It forecasts EPS of $11.57-$12.07, with adjusted EPS of $13.00-$13.50. In the first quarter of 2026, the company expects organic growth of 5-7%, segment margins of 22.2-22.6%, EPS of $2.29-$2.49, and adjusted EPS of $2.65-$2.85.
Eaton Corporation plc (NYSE:ETN) is a power management firm that presents energy-saving solutions for electrical, hydraulic, and mechanical power. It works in the Electrical Americas and Electrical Global; Aerospace, Vehicle, and eMobility segments.
4. Super Micro Computer, Inc. (NASDAQ:SMCI)
On April 16, JPMorgan reduced its price target for Super Micro Computer, Inc. (NASDAQ:SMCI) from $40 to $28. It maintained a Neutral rating on the stock and updated hardware and networking coverage ahead of Q1. The firm expected AI infrastructure expenditure across servers, switches, and interconnects to drive supplier upside.
On April 7, Reuters reported that Super Micro Computer, Inc. (NASDAQ:SMCI) launched an independent inquiry. This happened after the US Justice Department charged co-founder Yih-Shyan Liaw, sales manager Ruei-Tsang Chang, and contractor Ting-Wei Sun with alleged violations of export controls. It involved the routing of US-made servers through Taiwan into Southeast Asia before shipment to China.
The company conducted an internal assessment of its global trade compliance program, sending Liaw and Chang on leave, terminating Sun, and confirming Liaw’s resignation from the board in March.
According to Reuters, independent directors Scott Angel and Tally Liu are overseeing the investigation involving Munger, Tolles & Olson and AlixPartners, but no completion date has been revealed.
Super Micro Computer, Inc. (NASDAQ:SMCI) operates as a seller and developer of server and storage solutions based on modular, open-standard architecture across Europe, the United States, Asia, and internationally. It provides liquid and air-cooled AI servers.
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
On April 24, CNBC reported that Advanced Micro Devices, Inc. (NASDAQ:AMD) shares went up by over 12%, citing investor reaction to Intel’s latest earnings. Intel saw a high CPU demand due to AI buildouts, leading investors to buy AMD.
Gil Luria, an analyst at D.A. Davidson, said that Intel’s performance showed a “very significant upside” and that CPUs are “reinserting” as essential AI infrastructure. Luria upgraded Advanced Micro Devices, Inc. (NASDAQ:AMD) to buy from neutral and lifted his price target to $375, representing a 22% increase.
Citi analyst Atif Malik said Intel now forecasts “double-digit server CPU unit growth in 2026,” raising his recommendation to buy from neutral. According to Roth analyst Suji Desilva, improved AI infrastructure participation led to a stronger valuation expectation among peers, including Advanced Micro Devices, Inc. (NASDAQ:AMD).
Barclays analyst Tom O’Malley has warned of potential share movements, stating that his downside case implies “greater share loss to AMD.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) works in the semiconductor industry. Its product line includes processors, accelerators, graphics, adaptive SoCs, FPGAs, and SOMs, as well as software, tools, and apps. The company provides artificial intelligence, industries, workload, and gaming solutions.
2. Vertiv Holdings Co (NYSE:VRT)
On April 22, Vertiv Holdings Co (NYSE:VRT) reported solid first-quarter growth, with net sales of $2.65 billion, a 30% upsurge YoY. The corporation reported an operating profit of $440 million, a 51% increase. It also had an adjusted operating profit of $551 million, with a 64% growth. The firm improved its adjusted operating margin to 20.8%, up 430 basis points, because of rising volumes and price-cost savings.
The corporation had $767 million in operating cash flow, a 153% spike, with adjusted free cash flow being $653 million, up 147%.
According to CEO Giordano Albertazzi, “customers prioritizing optimized design, deployment speed, and operational efficiency,” showing that demand is linked to changing data center requirements. Executive Chairman Dave Cote said that clients chose the firm “because we can deliver at scale.”
Vertiv Holdings Co (NYSE:VRT) updated its full-year goals and forecasted net sales of $13.5 billion to $14.0 billion and adjusted EPS of $6.30 to $6.40.
Vertiv Holdings Co (NYSE:VRT) is a company that produces, designs, and services critical digital infrastructure technology for data centers, communication networks, and commercial and industrial applications.
1. NVIDIA Corporation (NASDAQ:NVDA)
Reuters on April 22 cited Commerce Department Secretary Howard Lutnick reporting that NVIDIA Corporation (NASDAQ:NVDA) has not sold its H200 AI chips to Chinese enterprises. Lutnick stated, “We have not sold them chips as of yet,” attributing the delay to China’s central government banning acquisitions so as to favor domestic market investment.
As reported by Reuters, the Trump administration approved H200 shipments to China in January with conditions, which caused concerns among US lawmakers about potential military use. Sources told Reuters that conflicts over sales terms in both countries have slowed supplies even further.
Lutnick said that the affiliates rule blocking exports to thousands of Chinese businesses is still being considered. However, it is linked to broader trade negotiations. He also stated that President Donald Trump, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer are in charge of China policy, while he focuses on other issues.
NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures computer graphics processors, chipsets, and related multimedia applications. It functions in two segments: graphics processing unit and compute and networking.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
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