In this article, we will look at the 5 Best Data Center Stocks to Buy in July. Please visit the 10 Best Data Center Stocks to Buy in July if you’d like to see an extended list and the methodology behind it.
5. Vertiv Holdings Co. (NYSE:VRT)
Market Capitalization: $117.38 billion
Number of Hedge Fund Holders: 96
Vertiv Holdings Co. (NYSE:VRT) is one of the 10 Best Data Center Stocks to Buy in July. Of the 31 analyst ratings compiled by CNN, 77% assigned Vertiv a Buy rating, while 16% rated it Hold. The stock has an average price target of $380, a 24.35% upside from the current price of $305.58.
Among the most recent developments, on July 6, TipRanks reported that Bernstein analyst Varun Govindaraj reiterated a Buy rating on Vertiv and set a price target of $416.00.
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Earlier, on July 1, Vertiv announced it had expanded its manufacturing footprint by opening a manufacturing facility in Johor, Malaysia. The new facility is expected to support growing demand for AI and high-density computing infrastructure across Asia, Australia, and New Zealand.
Vertiv highlighted that the site benefits from strong regional connectivity and proximity to key technology and customer hubs across the region, as it is situated in one of Southeast Asia’s fastest-growing industrial markets. It emphasized that the facility enhances its ability to support customers with regional manufacturing, engineering, logistics, and deployment capabilities.
Last month, Oppenheimer identified Vertiv as one of the top data center stocks to benefit from the power infrastructure challenges posed by artificial intelligence data centers, according to a report by Investing.com. The analyst assigned an Outperform rating to Vertiv with a $353 price target, citing the company’s evolutionary, multi-path approach to DC power architecture.
Vertiv Holdings Co. (NYSE:VRT) is engaged in the design, manufacturing, and servicing of critical digital infrastructure for data centers, communication networks, and commercial and industrial environments. The company specializes in thermal management, power distribution, and backup power systems, ensuring high efficiency and reliability in mission-critical operations.
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Market Capitalization: $841.57 billion
Number of Hedge Fund Holders: 134
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 Best Data Center Stocks to Buy in July. On July 6, TheFly reported that Goldman increased its price target on AMD to $640 from $450 while maintaining a Buy rating on the stock.
On the same day, Investing.com reported that Citi placed AMD on its upside catalyst watch list, highlighting the durable AI demand strength. Additionally, Japanese autonomous driving startup Turing announced that AMD Ventures had joined its investor group and that it has adopted AMD accelerators into its systems.
In other news, AMD reported earlier on June 24 that it was identified by research and advisory firm Gartner as “The Company to Beat for Enterprise AI Server CPUs,” highlighting its I/O bandwidth, server consolidation capabilities, and alignment with agentic AI orchestration.
According to 59 stock ratings compiled by CNN, 83% assigned a Buy rating to AMD, while 17% assigned a Hold rating. The stock has an average price target of $520, a 0.75% upside from the current price of $516.11.
Advanced Micro Devices, Inc. (NASDAQ:AMD) offers full-stack AI solutions that provide the performance and scalability needed for a new era of intelligent computing with its portfolio of AI-optimized CPUs, GPUs, networking, and software.
3. Micron Technology Inc. (NASDAQ:MU)
Market Capitalization: $1.06 trillion
Number of Hedge Fund Holders: 154
Micron Technology Inc. (NASDAQ:MU) is one of the 10 Best Data Center Stocks to Buy in July. On July 6, TipRanks reported that Bernstein analyst Mark Li reiterated a Buy rating on Micron while setting a price target of $1300.00.
On the same day, TipRanks also reported that Bank of America analyst Vivek Arya described Micron as a major winner in the AI investment boom, reiterating a Buy rating on the stock while assigning a price target of $1,550. Bank of America forecasts cloud and AI infrastructure spending to continue its fast-paced growth, potentially reaching $1.5 trillion by 2027.
Micron continues to see strong Buy ratings from analysts: 94% of the 53 analyst ratings compiled by CNN are Buys, while 6% are Holds. The stock has a median price target of $1,600, a 70.51% upside from the current price of $938.38.
Last month, Micron announced a strategic partnership with Anthropic aimed at scaling up the next-generation AI infrastructure. According to the company, the agreement spans memory and storage AI architecture design, supply and demand, and enterprise adoption of Claude across the company. It also includes a strategic investment in Anthropic’s Series H funding round.
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.
2. Broadcom Inc. (NASDAQ:AVGO)
Market Capitalization: $1.76 trillion
Number of Hedge Fund Holders: 173
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Best Data Center Stocks to Buy in July. On July 8, Apple announced a multi-year chip deal with Broadcom expected to exceed $30 billion, the largest U.S. manufacturing commitment to date, CNBC reported.
The agreement covers the production of more than 15 billion U.S.-made chips as well as a $1.5 billion expansion of Broadcom’s facility in Fort Collins, Colorado.
Reuters reported on July 6 that Broadcom will expand its partnership with Apple through 2031 for the development and supply of custom chips.
In other news, TipRanks reported on July 7 that Erste Group analyst Hans Engel downgraded its rating on Broadcom to Hold from Buy, highlighting valuation concerns.
Based on 54 analyst ratings compiled by CNN, 93% marked Broadcom Buy while 7% assigned a Hold rating. The stock has an average price target of $525, a 41.59% upside from the current price of $370.78.
Broadcom Inc. (NASDAQ:AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs.
1. NVIDIA Corp. (NASDAQ:NVDA)
Market Capitalization: $4.76 trillion
Number of Hedge Fund Holders: 275
NVIDIA Corp. (NASDAQ:NVDA) is one of the 10 Best Data Center Stocks to Buy in July. On July 8, TipRanks reported that Bank of America Securities analyst Vivek Arya reiterated a Buy rating on Nvidia while setting a $350 price target.
Nvidia continues to see strong Buy ratings from analysts, with 94% of 66 analysts compiled by CNN marking the stock Buy. The stock currently has a median price target of $300, a 52.34% upside from the current price of $196.93.
Earlier on July 6, Bloomberg reported that Nvidia emphasized that its roadmap remains intact amid claims that its next-gen AI rack system is delayed. An earlier report by SemiAnalysis alleged that the company’s Kyber NVL144 has been delayed and pushed to 2028 due to difficulties in manufacturing a key circuit board.
In other news, Certara recently announced that it is partnering with Nvidia to advance its open integrated AI platform. The collaboration is aimed at unifying its scientific software, regulatory expertise, and proprietary datasets with AI-first, agentic frameworks.
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.
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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