In this piece, we will take a look at the five best data center stocks to buy according to analysts. If you want to take a detailed look at what a data center stock really is, then read 12 Best Data Center Stocks To Buy According to Analysts.
5. SBA Communications Corporation (NASDAQ:SBAC)
Number of Q4 2023 Hedge Fund Shareholders: 41
Share Price Target Upside: 24%
Latest Average Share Price Target: $265
SBA Communications Corporation (NASDAQ:SBAC) is another telecommunications and data center real estate investment trust. The firm has beaten analyst EPS estimates in just one of its four latest quarters, and the shares are rated Buy on average.
Insider Monkey’s Q4 2023 survey of 933 hedge funds revealed that 41 had bought and owned SBA Communications Corporation (NASDAQ:SBAC)’s shares. Ken Griffin’s Citadel Investment Group was the firm’s largest hedge fund investor through its $673 million investment.
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Follow Sba Communications Corp (NASDAQ:SBAC)
4. GDS Holdings Limited (NASDAQ:GDS)
Number of Q4 2023 Hedge Fund Shareholders: 14
Share Price Target Upside: 118%
Latest Average Share Price Target: $17
GDS Holdings Limited (NASDAQ:GDS) is a Chinese pure play data center company that operates the digital infrastructure. March 2024 has shaped up to be an important month for the firm, as despite the restrictive capital environment, it has secured investor interest in its global facilities.
For their fourth quarter of 2023 shareholdings, 14 out of the 933 hedge funds part of Insider Monkey’s database had bought a stake in the firm. The biggest GDS Holdings Limited (NASDAQ:GDS) shareholder among these is Joel Ramin’s 12 West Capital Management as it owns $46.1 million worth of shares.
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Follow Gds Holdings Ltd (NASDAQ:GDS)
3. VNET Group, Inc. (NASDAQ:VNET)
Number of Q4 2023 Hedge Fund Shareholders: 15
Share Price Target Upside: 132%
Latest Average Share Price Target: $4
VNET Group, Inc. (NASDAQ:VNET) is another Chinese firm that owns and operates data center infrastructure and assets. A slowdown in the Chinese economy has had a limited impact on its financials, as the firm has beaten analyst EPS estimates in three out of its four latest quarters.
As of December 2023 end, 15 out of the 933 hedge funds profiled by Insider Monkey were VNET Group, Inc. (NASDAQ:VNET)’s shareholders. Out of these, the largest shareholder is Masahiko Yamaguchi’s MY.Alpha Management HK Advisors through its $18.3 million investment.
Follow 21Vianet Group Inc. (NASDAQ:VNET)
Follow 21Vianet Group Inc. (NASDAQ:VNET)
2. IHS Holding Limited (NYSE:IHS)
Number of Q4 2023 Hedge Fund Shareholders: 17
Share Price Target Upside: 187%
Latest Average Share Price Target: $9
IHS Holding Limited (NYSE:IHS) is a Britain based telecommunications infrastructure firm with a presence in the Edge segment of the data center industry used in 5G networks. The firm has had a busy 2024 so far, as it has expanded its presence in Nigeria and settled with a shareholder regarding corporate governance.
Insider Monkey dug through 933 hedge fund portfolios for last year’s fourth quarter and found that 17 were IHS Holding Limited (NYSE:IHS)’s investors.
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Follow Ihs Inc. (NYSE:IHS)
1. Applied Digital Corporation (NASDAQ:APLD)
Number of Q4 2023 Hedge Fund Shareholders: 16
Share Price Target Upside: 227%
Latest Average Share Price Target: $14
Applied Digital Corporation (NASDAQ:APLD) is a pure play data center operator headquartered in Dallas, Texas. The firm scored a win in March 2024 when it teamed up with an AI company to provide it with high end GPU clusters.
During Q4 2023, 16 out of the 933 hedge funds part of Insider Monkey’s database had invested in Applied Digital Corporation (NASDAQ:APLD).
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Follow Applied Digital Corp.
Disclosure: None. You can also take a look at 20 Biggest Natural Gas Companies in the World and 15 NATO Members with the Largest Militaries.
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