In this article, we will list the 5 Best Data Center Stocks with Huge Upside Potential. Please visit 10 Best Data Center Stocks with Huge Upside Potential if you would like to see the extended list and the methodology behind it.
5. Hewlett Packard Enterprise Company (NYSE:HPE)
On May 21, 2026, Morgan Stanley analyst Erik Woodring raised the firm’s price target on Hewlett Packard Enterprise Company (NYSE:HPE) to $33 from $25 and maintained an Equal Weight rating on the shares. Woodring said IT hardware has outperformed over the past two and a half months due to short covering, resilient near-term spending, and demand pull-forward. Morgan Stanley said its April and July quarter forecasts reflect stronger-than-expected spending, but warned that pull-forward, memory inflation, supply shortages, and macro pressure could create margin and earnings risk in the second half.
On May 15, 2026, JPMorgan raised the firm’s price target on Hewlett Packard Enterprise Company (NYSE:HPE) to $37 from $27 and maintained an Overweight rating on the shares. JPMorgan cited the reversal of memory-related concerns for the recent rally in the IT hardware group. The firm said it is most positive on Dell Technologies and HPE heading into earnings, and expects estimate increases to reinforce the companies’ medium-term earnings growth outlooks.
Earlier in May, Hewlett Packard Enterprise Company (NYSE:HPE) announced new self-driving network capabilities, calling itself the first provider of fully autonomous, agentic AIOps networking. The company said new self-driving actions across HPE Mist and HPE Aruba Central enable networks to detect, diagnose, and resolve issues in real time without human intervention. HPE said the architecture is powered by microservices, autonomous agents, and an advanced agentic mesh.
Hewlett Packard Enterprise Company (NYSE:HPE) develops intelligent technology solutions across the United States, the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and international markets.
4. Seagate Technology Holdings plc (NASDAQ:STX)
On May 27, 2026, Barclays analyst Tom O’Malley raised the firm’s price target on Seagate Technology Holdings plc (NASDAQ:STX) to $1,000 from $750 and maintained an Overweight rating on the shares. O’Malley said memory and storage remain the “most attractive vertical below accelerators” in the semiconductor group. Barclays expects continued pricing upside as the supply-demand imbalance persists through 2027, with the biggest hard disk drive pricing opportunity expected toward the end of the year as new contract pricing and products come into play and mix shifts toward 40TB drives.
Also on May 27, Seagate Technology Holdings plc (NASDAQ:STX) and Seagate HDD Cayman announced the closing of previously announced privately negotiated exchanges of $185.908M principal amount of Seagate HDD’s 3.50% Exchangeable Senior Notes due 2028. The exchange consideration included $185.908M in cash and approximately 2.02M ordinary shares of Seagate stock. The exchanged notes have been retired, while approximately $185.8M in aggregate principal amount of notes remain outstanding with unchanged terms.
A day earlier, BofA raised the firm’s price target on Seagate Technology Holdings plc (NASDAQ:STX) to $900 from $840 and maintained a Buy rating on the shares. After hosting a client call with CEO Dave Mosley, BofA used a higher multiple, citing more confidence in the sustainability of demand and pricing.
Seagate Technology Holdings plc (NASDAQ:STX) provides data storage technology and infrastructure solutions in Singapore, the United States, the Netherlands, and internationally.
3. EMCOR Group, Inc. (NYSE:EME)
On May 28, 2026, Oppenheimer analyst Brent Thielman initiated coverage of EMCOR Group, Inc. (NYSE:EME) with an Outperform rating and a $1,100 price target. Thielman viewed EMCOR as one of the “higher quality” public infrastructure services companies, citing its exposure to the reacceleration of high-tech manufacturing projects and data center development. Oppenheimer also sees EMCOR as a long-term compounder with acquisition optionality.
Baird also raised the firm’s price target on EMCOR Group, Inc. (NYSE:EME) to $900 from $808 and maintained an Outperform rating on the shares. Baird updated its model following Q1 results and said guidance still looks fairly conservative.
Last month, EMCOR Group, Inc. (NYSE:EME) reported Q1 EPS of $6.84, ahead of the consensus estimate of $5.90. Revenue totaled $4.63B, above the consensus estimate of $4.2B. Chairman, President, and CEO Tony Guzzi said EMCOR started the year well, with record quarterly revenue and strong operating performance across key market sectors and geographies. Guzzi also said Remaining Performance Obligations reached record levels again, supported by the quality and diversity of bookings during the quarter.
EMCOR Group, Inc. (NYSE:EME) provides electrical and mechanical construction, facilities, building, and industrial services in the United States and the United Kingdom.
2. Comfort Systems USA, Inc. (NYSE:FIX)
On May 28, 2026, Oppenheimer initiated coverage of Comfort Systems USA, Inc. (NYSE:FIX) with an Outperform rating and a $2,200 price target. Oppenheimer said the company is “uniquely positioned” to address demand for complex facilities and believes Comfort Systems USA has a high potential to sustain or exceed its recent earnings growth rates.
UBS also raised the firm’s price target on Comfort Systems USA, Inc. (NYSE:FIX) to $1,992 from $1,680 and maintained a Buy rating on the shares. UBS said Comfort Systems USA posted another strong quarter.
Last month, Comfort Systems USA, Inc. (NYSE:FIX) reported Q1 EPS of $10.51, ahead of the consensus estimate of $6.81. Revenue totaled $2.87B, above the consensus estimate of $2.39B. CEO Brian Lane said the company delivered “unprecedented results,” including 51% organic revenue growth compared to the same quarter last year, per-share earnings that more than doubled, and more than $375 million of quarterly cash flow.
Comfort Systems USA, Inc. (NYSE:FIX) provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services in the United States.
1. Amazon.com, Inc. (NASDAQ:AMZN)
On May 27, 2026, Amazon.com, Inc. (NASDAQ:AMZN) shared a leadership update saying Neil Lindsay will step back from his Amazon role after more than 15 years at the company and five years helping establish its healthcare business. Amazon said Dr. Roy Schoenberg will become the new leader of Amazon Health Services, effective July 1. Schoenberg was described as a physician, entrepreneur, and digital healthcare pioneer who co-founded and led Amwell. Lindsay will help transition responsibilities over the summer and remain available in an advisory role through the end of 2026.
Amazon.com, Inc. (NASDAQ:AMZN) also said in a post to its AWS blog that Anthropic’s Claude Opus 4.8 is now available on Amazon Bedrock and the Claude Platform on AWS. Amazon said Claude Opus 4.8 brings improvements across production workflows, including agentic coding, deep knowledge work, and multi-stage autonomous tasks. The company added that Claude Opus 4.8 on Amazon Bedrock lets customers build within their existing AWS environment while maintaining enterprise security and regional data residency.
On May 20, 2026, Wells Fargo lowered the firm’s price target on Amazon.com, Inc. (NASDAQ:AMZN) to $312 from $313 and maintained an Overweight rating on the shares. Wells Fargo said market confidence is improving in companies that monetize compute investments directly through cloud businesses, supported by accelerating cloud revenue, stable-to-improving margins, and rising backlogs.
Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally.
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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