In this article, we will list the 5 Best Data Center Stocks to Buy Right Now. Please visit 12 Best Data Center Stocks to Buy Right Now if you would like to see the extended list and the methodology behind it.

5. Credo Technology Group Holding Ltd (NASDAQ:CRDO)

Stock Upside Potential: 59.20%

Number of Hedge Fund Holders: 69

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the best data center stocks to buy right now. On April 13, Credo Technology Group Holding Ltd (NASDAQ:CRDO) announced a definitive agreement to acquire DustPhotonics, a developer of Silicon Photonics Photonic Integrated Circuit (PIC) technology for optical transceivers. The deal is valued at $750 million in cash and 0.92 million shares of Credo stock, with additional contingent consideration of up to 3.21 million shares tied to financial milestones.

Founded in 2017 and based in Israel, DustPhotonics specializes in Silicon Photonics PICs spanning 400G, 800G, and 1.6T, with a roadmap to 3.2T. The company employs about 70 people and operates a fabless model, making it a strategic fit for Credo’s connectivity solutions in AI, cloud, and hyperscale networks.

The acquisition will bring DustPhotonics’ technology in‑house, enhancing Credo’s portfolio of optical transceivers, DSPs, and photonics products. Credo expects the combined portfolio to generate over $500 million in optical revenue by fiscal 2027 and be accretive to non‑GAAP EPS.

The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and customary conditions, marking a significant expansion of Credo’s role in next‑generation optical networking.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a semiconductor company that provides high-speed connectivity solutions for data center, AI, and enterprise networking markets. They develop chipsets, specialized cables, and IP that increase bandwidth, reduce power consumption, and improve data transfer speeds for AI infrastructure, hyperscalers, and optical networking.

4. Applied Digital Corp (NASDAQ:APLD)

Stock Upside Potential: 75.17%

Number of Hedge Fund Holders: 40

Applied Digital Corp (NASDAQ:APLD) is one of the best data center stocks to buy right now. On April 10, H.C. Wainwright reiterated its Buy rating on Applied Digital (NASDAQ:APLD), maintaining a $40 price target following the release of the company’s fiscal third‑quarter results.

According to management, the company operates one of the few 100 MW direct-to-chip liquid-cooled data centers online. The company is also starting to see the earnings power of its platform with revenue from the first building. The data center hosting business, which operates 286 MW of Bitcoin mining capacity, also continues to deliver strong results, with an operating profit of $14 million.

Total revenue for the fiscal third quarter of 2026 came in at $126.6 million, representing a 139% from the prior year. The company’s net loss also dropped to $100.9 million. In addition, Applied Digital posted an adjusted net income of $33.2 million and adjusted net income per diluted share of $0.09.

During the quarter, the company completed a $2.15 billion private offering for use in the development and construction of a 200MW critical IT load at the Polaris Forge AI factory.

Applied Digital Corp (NASDAQ:APLD) designs, builds, and operates next-generation data centers and high-performance computing (HPC) infrastructure tailored for artificial intelligence (AI) and cloud applications. They provide GPU-driven cloud services and infrastructure for AI, machine learning, and blockchain, targeting hyperscalers and enterprises.

3. Oracle Corporation (NYSE:ORCL)

Stock Upside Potential: 77.50%

Number of Hedge Fund Holders: 111

Oracle Corporation (NYSE:ORCL) is one of the best data center stocks to buy right now. On April 13, Oracle Corporation (NYSE:ORCL) expanded its strategic partnership with Bloom Energy. In return, the company will gain access to 2.8 gigawatts of fuel cell systems to support its build-out of artificial intelligence and cloud computing infrastructure.

Under a master service agreement, Oracle is contracted for an initial capacity of 1.2 GW. The deployment is already underway across the company’s projects in the US. The fuel cell is to support the company’s cloud infrastructure demand.

Bloom has carved out a niche by offering fuel systems designed for higher-density AI workloads. It has emerged as a beneficiary of the AI boom, as data center developers like Oracle seek alternative energy sources to meet surging demand.

On the other hand, KeyBanc has reiterated an Overweight rating on Oracle with a $300 price target. The positive stance is in response to the company’s approach spanning multiple areas, including infrastructure for running AI workloads and deploying agents to automate work, as well as core enterprise data.

Oracle Corporation (NYSE:ORCL) is a major player in data center technology, focusing on providing high-performance infrastructure, cloud services, and specialized database hardware. Their activities span from building their own global public cloud network to deploying specialized hardware directly inside customer data centers.

2. WhiteFiber Inc. (NASDAQ:WYFI)

Stock Upside Potential: 84.48%

Number of Hedge Fund Holders: 9

WhiteFiber Inc. (NASDAQ:WYFI) is one of the best data center stocks to buy right now. On April 10, BTIG initiated coverage of WhiteFiber Inc. (NASDAQ:WYFI) with a Buy rating and a $20 price target. The positive stance comes as the company increasingly provides data center infrastructure through its colocation and cloud services business.

According to BTIG, White Fiber’s power infrastructure is well-positioned to benefit from tightening market conditions. The remarks coincide with the company’s impressive 65% revenue growth over the past year, backed by a solid 88.6% gross profit margin . The impressive financial performance stems from the company boasting about 40 megawatts of contracted colocation capacity at its North Carolina site with Nscale.

WhiteFiber is on course to bring an additional 59 megawatts of uncontracted capacity at the North Carolina site online in the second half of 2027. The company already boasts of 108 megawatts of contracted colocation capacity and 6 megawatts of Cloud Services capacity.

WhiteFiber Inc. (NASDAQ:WYFI) operates specialized, high-density data centers designed for AI/ML and High-Performance Computing (HPC) workloads. They offer colocation, tailored racks, and infrastructure supporting up to 150 kW per cabinet, featuring direct liquid cooling, 2N power redundancy, and high-speed network connectivity to meet the most demanding AI power needs.

1. VNET Group Inc (NASDAQ:VNET)

Stock Upside Potential: 91.21%

Number of Hedge Fund Holders: 30

VNET Group Inc (NASDAQ:VNET) is one of the best data center stocks to buy right now. On March 16, Jefferies reiterated a Buy rating and raised its price target for VNET Group Inc (NASDAQ:VNET) to $23.55 from $22.12. The price target hike followed senior vice president Pete Zhihua Zhang’s reiteration that the company continues to achieve high-quality growth amid strong AI-driven demand.

The remarks follow a strong 2025, during which the company achieved its 2025 delivery plan, delivering a record 404MW. Fourth quarter revenue was up 19.6% to $384.2 million, driven by a 23.7% increase in IDC revenues to $288.3 million. Full-year revenue was up 20.5% to $1.42 billion. Fourth quarter adjusted EBITDA was up 11.6% to $115.1 million, as full year adjusted EBITDA increased 22.6% to $425.9 million.

For the full year 2026, VNET Group estimates revenue growth of between 15.6% and 18.6%, to between RMB11.5 billion and RMB11.8 billion. The company also expects 450 to 500 megawatts of growth in 2026 compared to 404 megawatts last year.

“As a leading player, we remain focused on reinforcing our core strengths and developing our scalable and high-performance data centers to capture the accelerating AI-driven demand. Moving forward, we will further advance our Hyperscale 2.0 framework to achieve sustainable, high-quality growth and create long-term value for all stakeholders,” said Josh Sheng Chen, Founder, Executive Chairperson

VNET Group Inc (NASDAQ:VNET) is a leading carrier-neutral data center provider in China, operating more than 50 centers in over 30 cities. It offers wholesale and retail colocation, managed hosting, and cloud services, including Microsoft Azure/365 in China, to enterprises, internet companies, and cloud providers.

READ NEXT: Top 10 Growth Stocks in Billionaire Philippe Laffont’s Portfolio and Top 10 Consumer Defensive Stocks to Buy Now.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.