2. NVIDIA Corporation (NASDAQ:NVDA)
Forward P/E Ratio: 21.16
Number of Hedge Fund Holders: 275
NVIDIA Corporation (NASDAQ:NVDA) ranks 2nd on our list of Best Data Center Stocks That Are Cheaper Than the S&P 500. On June 9, Reuters reported that OpenAI is in talks to lease a massive 10-gigawatt data center campus across federal and private land in Ohio. NVIDIA Corporation (NASDAQ:NVDA) is expected to play a key financial and supply role in this deal.
The report noted that the campus is estimated to cost at least $500 billion to build, including the chips, labor, power, and other inputs. Reuters highlighted that OpenAI is expected to control the equipment under a 20-year lease, with payments beginning once operations start. The first phase is expected to come online in 2028. This facility is expected to be developed by SB Energy, a SoftBank unit, on Department of Energy land in southern Ohio. Some portions of the facility are also expected to acquire private land. Reuters noted that it would rank among the largest data center projects ever attempted.
The role of NVIDIA Corporation (NASDAQ:NVDA) as per the report is twofold. Firstly, it will supply hardware for the facility, and secondly, the company is also expected to provide a financial guarantee for OpenAI’s lease, making it a significant stakeholder in the project’s success.
NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units. Through its CUDA ecosystem, the company enables industries ranging from autonomous vehicles to scientific research by advancing AI, accelerated computing, and data center infrastructure.
