In this article, we will look at the 5 Best Data Center Stocks to Buy for the Long Term. Please visit 10 Best Data Center Stocks to Buy for the Long Term if you’d like to see an extended list and methodology behind it.
5. Advanced Micro Devices Inc. (NASDAQ:AMD)
Market Cap:$453.66 billion
Number of Hedge Fund Holders: 132
Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the best data center stocks to buy for the long term. The stock registered 218.01% growth in the past year and a more modest 24.52% year-to-date increase. On April 16, AMD’s stock price posted a 7.80 percent spike as the company announced plans to deepen collaboration with the French government in support of France’s National Strategy for AI.
The multi-year collaboration aims to strengthen France’s AI ecosystem through infrastructure, research, and education. To help expand AI expertise and enable diversity and resilience across the French AI ecosystem, AMD plans to provide researchers, developers, and startups with hardware, software, and training through its AMD University Program, AMD AI Developer Program, and AMD AI Academy.
To support the adoption of AI by consumers and businesses, AMD recently launched an expanded Ryzen AI portfolio with the launch of the AMD Ryzen AI 400 Series and Ryzen AI PRO 400 Series desktop processors.
AMD said the new processors deliver powerful on-device AI acceleration and next-generation performance, which enable users to run AI applications and LLMs locally as well as tackle compute-intensive applications, including those for design and engineering, with ease.
In February, AMD said it forged a 6-gigawatt agreement with Meta to power the latter’s next generation of AI infrastructure across multiple generations of AMD Instinct GPUs.
The agreement expands on the companies’ existing strategic partnership and aligns roadmaps across silicon, systems, and software to deliver AI platforms purpose-built for Meta’s workloads.
AMD said the first deployment will use a custom AMD Instinct GPU based on the MI450 architecture to deliver AI platforms that are optimized for Meta’s workloads at gigawatt-scale, adding that shipments supporting the first gigawatt deployment are scheduled to begin in the second half of 2026.
AMD chair and CEO Dr. Lisa Su said the company is proud to expand its strategic partnership with Meta as they push the boundaries of AI at unprecedented scale. In a statement, she said:
“This multi-year, multi-generation collaboration across Instinct GPUs, EPYC CPUs and rack-scale AI systems aligns our roadmaps to deliver high-performance, energy-efficient infrastructure optimized for Meta’s workloads, accelerating one of the industry’s largest AI deployments and placing AMD at the center of the global AI buildout.”
In the same month, AMD announced a multi-year strategic partnership with Nutanix to develop an open, full-stack AI infrastructure platform designed to power agentic AI applications everywhere.
As part of the agreement, AMD said it will make a strategic investment of $150 million in Nutanix common stock at a purchase price of $36.26 per share, and fund up to $100 million for Nutanix to support joint engineering initiatives and go-to-market collaboration to accelerate the adoption of AMD and the Nutanix-powered agentic AI platform, everywhere.
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.
4. Micron Technology Inc. (NASDAQ:MU)
Market Cap:$515.63 billion
Number of Hedge Fund Holders: 137
Micron Technology Inc. (NASDAQ:MU) is one of the best data center stocks to buy for the long term. The company’s stock price zoomed 564.58% compared to a year ago, and 44.96% year-to-date, as investors expressed confidence in the company’s production volume capacity. MU stock has a Strong Buy consensus rating based on 27 Buys and two Holds.
In March, the company reported a high production volume of its HBM4 product, which is designed for NVIDIA’s Vera Rubin. It added that volume shipment of its HBM4 36GB 12H has already begun in the first quarter of calendar year 2026.
Micron Technology executive vice president and chief business officer, Summit Sadana, said:
“The next era of AI will be defined by tightly integrated platforms developed through joint engineering innovations across the ecosystem. Our close collaboration with NVIDIA ensures that compute and memory are designed to scale together from day one. At the heart of this is Micron’s HBM4, the engine of AI, delivering unprecedented bandwidth, capacity and power efficiency. With HBM4 36GB 12H, alongside the industry’s first SOCAMM2 and Gen6 SSD now in high-volume production, Micron’s memory and storage form a core foundation that unlocks the full potential of next-generation AI.”
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.
3. Broadcom Inc. (NASDAQ:AVGO)
Market Cap:$1.89 trillion
Number of Hedge Fund Holders: 202
Broadcom Inc. (NASDAQ:AVGO) is one of the best data center stocks to buy for the long term. The stock posted a 133.04% increment from a year ago, and a 14.63% year-to-date growth. As of writing, AVGO’s stock has jumped 28 percent in April alone, marking the company’s third-best monthly performance since it went public in 2009. The stellar performance is driven by the company’s recent AI-related deals.
Last week, AI safety and research firm Anthropic said it has partnered with Broadcom and Google for multiple gigawatts of next-generation Tensor Processing Unit (TPU) capacity, expected to come online starting 2027.
Anthropic said significant expansion of its compute infrastructure will power its frontier Claude models and help it serve extraordinary demand from customers worldwide.
Krishna Rao, CFO of Anthropic, CFO Krishna Rao said:
“This groundbreaking partnership with Google and Broadcom is a continuation of our disciplined approach to scaling infrastructure: we are building the capacity necessary to serve the exponential growth we have seen in our customer base while also enabling Claude to define the frontier of AI development,”
Meanwhile, Broadcom also recently announced the launch of its Arcot Smart Ruleset, an adaptive 3-D Secure (3DS) ruleset engine powered by machine learning. It explained that the ruleset replaces manual fraud rule-writing with optimized fraud logic that continuously learns from evolving threats while updating to the latest compliance and regulatory requirements.
Broadcom Vice President and Payment Security General Manager Matt Cooke emphasized that automated fraud detection is currently a multi-million dollar differentiator for top issuers. He added:
“The Arcot Smart Ruleset is replacing manual logic with precision decisioning. By arming financial institutions with adaptive intelligence for an evolving threat landscape, it also frees fraud teams from tedious manual rule-writing so they can focus on higher value activities such as investigations and fraud strategy.”
Broadcom Inc. (NASDAQ:AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology at scale.
2. NVIDIA Corp. (NASDAQ:NVDA)
Market Cap:$4.82 trillion
Number of Hedge Fund Holders: 264
NVIDIA Corp. (NASDAQ:NVDA) is one of the best data center stocks to buy for the long term. In the past year, the stock grew 95.44%, while it posted 5.03% year-to-date growth. On April 14, NVIDIA announced the world’s first family of open source quantum AI models, NVIDIA Ising, designed to help researchers and enterprises build quantum processors capable of running useful applications.
NVIDIA said Ising models run the world’s best quantum processor calibration and enable researchers to tackle much larger, more complex problems with quantum computers by delivering up to 2.5x faster performance and 3x higher accuracy for the decoding process needed for quantum error correction.
NVIDIA earlier reported that fourth-quarter data center revenue grew to $62.3 billion, a 75 percent increase from a year ago, driven by major platform shifts toward accelerated computing and AI. Full-year data revenue rose 68 percent to a record $193.7 billion.
“Computing demand is growing exponentially — the agentic AI inflection point has arrived. Grace Blackwell with NVLink is the king of inference today — delivering an order-of-magnitude lower cost per token — and Vera Rubin will extend that leadership even further,” said Jensen Huang, founder and CEO of NVIDIA.
“Enterprise adoption of agents is skyrocketing. Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth,” Huang added.
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.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Market Cap:$2.68 trillion
Number of Hedge Fund Holders: 381
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best data center stocks to buy for the long term. The stock grew by 46.38% from last year, while it posted 11.56% growth year-to-date. The company continues to enter and expand existing partnerships, such as its agreement with utility company NiSource.
On April 16, NiSource announced that under the updated agreement with Amazon, it is accelerating the energization of Amazon sites and associated credits for residential customers. It added that residents will see the benefits of cost savings and site activation sooner, enabling them to take advantage of improved energy service and bill credits as part of NiSource’s commitment to delivering value through the GenCo model.
Earlier this week, Amazon also announced that it has entered into a definitive merger agreement with Globalstar, Inc. for the acquisition of the latter, enabling Amazon Leo to add direct-to-device (D2D) services to its low Earth orbit satellite network and extend cellular coverage to customers beyond the reach of terrestrial networks.
In addition, Amazon and Apple announced an agreement for Amazon Leo to power satellite services for iPhone and Apple Watch, including Emergency SOS via satellite. The new capabilities are part of Amazon’s long-term vision for space-based connectivity, and Amazon plans to work with mobile network operators (MNOs) and additional partners to deliver on that vision and extend reliable, high-speed connectivity to customers, no matter where they are in the world.
Amazon CEO Andy Jassy emphasized that the company’s $200 billion capex for this year, which will be focused mainly on AI efforts, will not be invested on a hunch. In a letter to shareholders, he said:
“The recent OpenAI commitment (over$100billion) is an example of this, but there are several other customer agreements completed (and unannounced), or deep in process. Of the AWS capex we expect to spend in 2026,much of which will be monetized in 2027-2028, we already have customer commitments for a substantial portion of it.”
The Amazon CEO said AWS could be growing even faster, noting that it added 3.9 gigawatts (“GW”) of new power capacity in 2025, expects to double total power capacity by the end of 2027, and is monetizing that capacity as fast as it’s installed.
“In Q4 2025, AWS reported 24% YoY growth with a $142 billion revenue run rate. That’s a lot of absolute growth. And yet, we still have capacity constraints that yield unserved demand,” he added.
Meanwhile, the company also announced this week that its total planned investment in its Mississippi data centers has reached $25 billion, with 2,000 jobs expected.
Amazon’s planned expansion includes an additional $11 billion investment in Madison County and a $1 billion investment in Hinds County, where they are transforming the former Delphi manufacturing plant into a cutting-edge data center facility.
Amazon.com, Inc. (NASDAQ:AMZN) is a global technology company operating through multiple interconnected business units. While well-known as an online retailer, it is also a major player in cloud computing, digital streaming, and artificial intelligence.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
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