In this article, we will list the 5 Best Data Center Stocks to Buy and Hold for the Next Decade. Please visit 15 Best Data Center Stocks to Buy and Hold for the Next Decade if you would like to see the extended list and the methodology behind it.
5. Parker-Hannifin Corporation (NYSE:PH)
On July 2, 2026, Truist analyst Jamie Cook raised the firm’s price target on Parker-Hannifin Corporation (NYSE:PH) to $1,269 from $1,147 and kept a Buy rating on the shares. Cook adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. Cook said Truist sees a positive setup for Q2 earnings reports across the sector, with demand trends remaining strong and supported by secular growth tailwinds in power, data center, aerospace and defense, and infrastructure.
On June 30, Deutsche Bank analyst Nicole Deblase placed a “Catalyst call: Buy” on shares of Parker-Hannifin as a short-term investment idea. Deblase said the stock’s year-to-date underperformance will continue its recent reversal, as investors increasingly seek out short-cycle industrial exposure.
On June 10, Bernstein analyst Varun Govindaraj initiated coverage of Parker-Hannifin with an Outperform rating and $1,026 price target. Govindaraj cited Parker-Hannifin’s history of “operational excellence” and its continued shift to higher margin, higher growth markets and stickier revenue streams as reasons for the stock’s premium multiple.
Parker-Hannifin Corporation (NYSE:PH) manufactures and sells motion and control technologies and systems for aerospace and defense, in-plant and industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration markets in North America, Europe, Asia Pacific, and Latin America.
4. Legence Corp. (NASDAQ:LGN)
On June 22, 2026, Barclays raised the firm’s price target on Legence Corp. (NASDAQ:LGN) to $80 from $60 and kept an Equal Weight rating on the shares. Barclays said May machinery and construction data reinforced its view of strong dollar activity but weak volumes. The firm noted that growth remains concentrated in AI, while infrastructure is “supportive but normalizing.”
A month earlier, Tigress Financial raised the firm’s price target on Legence to $125 from $85 and kept a Buy rating on the shares. Tigress cited the company’s “accelerating growth runway,” pointing to a combination of near-term execution and long-duration, contractually supported demand across structurally advantaged end markets.
Similarly, BofA analyst Sherif El-Sabbahy raised the firm’s price target on Legence to $105 from $90 and kept a Buy rating on the shares after the company delivered a “strong Q1” and backlog expanded to $5.4B from $3.7B in Q4. Following the report, BofA raised adjusted EBITDA estimates 11% and 19% for 2026 and 2027, respectively.
Legence Corp. (NASDAQ:LGN) provides engineering, installation, and maintenance services for mission-critical systems in buildings in the United States.
3. Power Integrations, Inc. (NASDAQ:POWI)
On June 24, 2026, Stifel raised the firm’s price target on Power Integrations, Inc. (NASDAQ:POWI) to $95 from $82 and kept a Buy rating on the shares. Stifel said its earlier view that analog players were poised for a potential breakout in calendar year 2026 “has now been firmly validated,” citing beat-and-raise quarters from Astera Labs (ALAB), Credo Technology (CRDO), and Marvell (MRVL) in calendar Q1. Stifel also said it continues to view episodic weakness in AI-levered names as “a buying opportunity” for long-term investors focused on clear technological innovators.
On June 10, Needham initiated coverage of Power Integrations with a Buy rating and $90 price target. Needham cited the combination of a leading high-power GaN portfolio and the new management team’s strategic priorities to accelerate product development and open new high-growth markets as potential tailwinds for long-term, sustainable growth.
A month earlier, Susquehanna raised the firm’s price target on Power Integrations to $85 from $70 and kept a Positive rating on the shares. Susquehanna updated its model following positive Q1 results and said it looks forward to seeing Power Integrations execute on its growing AI DC opportunity.
Power Integrations, Inc. (NASDAQ:POWI) designs, develops, manufactures, and markets analog and mixed-signal integrated circuits, and other electronic components and circuitry used in high-voltage power conversion.
2. AXT, Inc. (NASDAQ:AXTI)
On June 23, 2026, AXT, Inc. (NASDAQ:AXTI) announced that Tracy Liu was appointed to its Board of Directors, effective June 17, 2026. The board expanded to five directors from four. Liu brings more than 30 years of business advisory, tax strategy, and accounting experience, including 10 years with Big Four public accounting firms and more than 20 years advising public and private companies.
On June 25, Northland reiterated an Outperform rating and recently increased its price target on AXT to $125 amid a sharp pullback in the shares. Northland also cited AXT’s “very positive” appearance at the firm’s NCM Growth Conference.
On June 18, AXT disclosed that its subsidiary, Beijing Tongmei Xtal Technology, entered into a long-term supply agreement with Nanjing Casela Technologies. The agreement reserves production capacity and raw-material allocation for Casela in exchange for Casela’s commitment to purchase a fixed aggregate quantity of indium phosphide wafer substrates from January 1, 2027, through December 31, 2027. In 2027, Casela is committed to purchasing an agreed quantity of InP substrate wafers for a total price of $25.4M, with deliveries on a monthly schedule.
AXT, Inc. (NASDAQ:AXTI) designs, develops, manufactures, and distributes compound and single-element semiconductor substrates.
1. Comfort Systems USA, Inc. (NYSE:FIX)
On July 1, 2026, William Blair analysts added Comfort Systems USA, Inc. (NYSE:FIX) to the firm’s Analyst Conviction List as part of its monthly update.
On June 23, Comfort Systems USA, Inc. (NYSE:FIX) announced that Craig Sasser, currently Regional Vice President, Atlantic Region, will be appointed COO, effective July 1. Trent McKenna will continue to serve as President of the company. Comfort Systems also said Briston Blair will transition from Senior Vice President, Innovation & Strategy to Chief Strategy & Innovation Officer, effective July 1.
On June 8, UBS raised the firm’s price target on Comfort Systems USA, Inc. (NYSE:FIX) to $2,125 from $1,992 and kept a Buy rating on the shares after meeting with management. UBS said company comments suggest the demand backdrop remains robust, led by data centers, with opportunities in semiconductors, healthcare, and education. UBS also sees evidence of Comfort’s current strong environment persisting through 2027.
Comfort Systems USA, Inc. (NYSE:FIX) provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services for the mechanical and electrical services industry in the United States.
While we acknowledge the potential of FIX 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 FIX and that has 100x upside potential, check out our report about the cheapest AI stock.
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