In this article, we will list the 5 Best Performing Data Center Stocks So Far in 2026. Please visit 10 Best Performing Data Center Stocks So Far in 2026 if you would like to see the extended list and the methodology behind it.
5. Cummins Inc. (NYSE:CMI)
On May 11, 2026, Evercore ISI raised the firm’s price target on Cummins Inc. (NYSE:CMI) to $845 from $694 and maintained an Outperform rating on the shares.
Truist also raised the firm’s price target on Cummins Inc. (NYSE:CMI) to $815 from $730 while reiterating a Buy rating. The firm pointed to the company’s Q1 earnings beat and noted that sales increased 3% year over year, supported by stronger demand in global power generation markets, particularly from data center-related activity.
Earlier in May, Cummins Inc. (NYSE:CMI) reported Q1 EPS of $4.71. Revenue totaled $8.4B, versus the consensus estimate of $8.37B. The quarter included charges tied to the sale of the company’s low-pressure fuel cell business totaling $199M, or $1.44 per diluted share. Chair and CEO Jennifer Rumsey said Cummins delivered strong operational performance during the quarter, led by record results in its Power Systems segment. Management highlighted continued strong demand tied to data center backup power infrastructure, while North American truck markets also began recovering from cyclical lows. Rumsey added that the company’s decision to divest its low-pressure fuel cell business reflects lower expectations for hydrogen adoption and an effort to focus investment spending and reduce losses within the Accelera segment.
Cummins Inc. (NYSE:CMI) provides power solutions globally through its Engine, Distribution, Components, Power Systems, and Accelera segments.
4. Power Integrations, Inc. (NASDAQ:POWI)
On May 8, 2026, Susquehanna raised the firm’s price target on Power Integrations, Inc. (NASDAQ:POWI) to $85 from $70 and maintained a Positive rating on the shares. The firm updated its model following the company’s Q1 results and said it expects Power Integrations to continue executing on growing opportunities tied to AI data center infrastructure.
Deutsche Bank analyst Ross Seymore also raised the firm’s price target on Power Integrations, Inc. (NASDAQ:POWI) to $65 from $45 while maintaining a Hold rating on the shares.
On May 7, 2026, Power Integrations, Inc. (NASDAQ:POWI) reported Q1 EPS of 25c, versus the consensus estimate of 23c. Revenue totaled $108.3M, versus the consensus estimate of $106.7M. CEO Jen Lloyd said the company benefited from improving market demand during the quarter while continuing to focus on high-voltage power solutions across industrial and infrastructure applications. Management highlighted 23% year-over-year growth in industrial revenue, driven by demand across renewable energy, battery storage, home automation, and automotive applications. Lloyd added that the company continues to see growing demand tied to electric vehicles and AI data centers, both directly through its PowiGaN technology and indirectly through rising pressure on power grids that support investment in renewables, battery storage, and DC transmission infrastructure.
Power Integrations, Inc. (NASDAQ:POWI) designs and manufactures analog and mixed-signal integrated circuits used in high-voltage power conversion applications.
3. Dell Technologies Inc. (NYSE:DELL)
On May 19, 2026, Dell Technologies Inc. (NYSE:DELL) unveiled a new suite of storage, compute, cyber resilience, and automation offerings aimed at modern data center infrastructure. The company introduced Dell PowerStore Elite, an AI-enabled storage platform combining updated hardware, software, and modular upgrade capabilities. Dell said the platform delivers three times the performance and density of prior generations, supports up to 5.8 petabytes of effective capacity within a single 3U appliance, and includes a 6:1 data reduction guarantee. The system is built on industry-standard E3 flash architecture and is designed to allow infrastructure upgrades without downtime or data migration. Dell also announced its 18th generation PowerEdge servers, which the company said can deliver up to 70% higher performance and support 13-to-1 consolidation through advanced air and liquid cooling systems. Dell PowerStore Elite is expected to become available in July, while the Dell PowerEdge M9825, R9825, and R9815 servers are scheduled for release in the second half of 2026.
On May 18, 2026, Dell Technologies Inc. (NYSE:DELL) also introduced Dell Deskside Agentic AI as part of the Dell AI Factory with NVIDIA. The offering is designed to help workgroups deploy and scale agentic AI workflows locally while reducing reliance on cloud-only infrastructure. Dell added that NVIDIA OpenShell runtime support has now been extended across the Dell AI Factory platform, spanning deskside workstations and Dell PowerEdge XE servers under a unified security and policy layer.
Dell Technologies Inc. (NYSE:DELL) develops and sells enterprise infrastructure, computing, storage, and IT solutions globally.
2. Marvell Technology, Inc. (NASDAQ:MRVL)
On May 20, 2026, Oppenheimer analyst Rick Schafer raised the firm’s price target on Marvell Technology, Inc. (NASDAQ:MRVL) to $200 from $170 and maintained an Outperform rating on the shares ahead of quarterly results. The firm said it expects upside to both Q1 results and Q2 guidance, driven by continued strength in AI networking and custom ASIC demand as cloud service providers keep expanding data center infrastructure builds.
Wells Fargo also raised the firm’s price target on Marvell Technology, Inc. (NASDAQ:MRVL) to $195 from $135 while reiterating an Overweight rating. The firm acknowledged that Marvell’s valuation at more than 30-times projected 2027 earnings creates a more demanding setup ahead of results, though it still sees enough upside from the ramp of AWS Trainium deployments, growing XPU attach opportunities, and sustained interconnect demand to support a bullish stance on the stock.
Earlier, Melius Research analyst Ben Reitzes raised the firm’s price target on Marvell Technology, Inc. (NASDAQ:MRVL) to $220 from $140 and maintained a Buy rating on the shares. The firm said it has become incrementally more constructive on AI and memory semiconductor companies, raising long-term estimates across several AI infrastructure and semiconductor names it describes as “bottleneck stocks,” including Micron Technology, Advanced Micro Devices, Intel, and Marvell. Melius added that it continues to believe semiconductor companies will capture a larger share of long-term market value growth relative to traditional software firms and other mega-cap technology companies.
Marvell Technology, Inc. (NASDAQ:MRVL) develops semiconductor solutions focused on data infrastructure spanning cloud data centers, networking, and edge computing markets.
1. Western Digital Corporation (NASDAQ:WDC)
On May 18, 2026, Western Digital Corporation (NASDAQ:WDC) announced the integration of post-quantum cryptography into its latest high-capacity Ultrastar UltraSMR hard disk drives, marking a new step in storage security for next-generation AI infrastructure. The company said the move comes as AI systems increasingly shift from compute-focused architectures toward persistent data storage environments supporting training, inference, and broader AI interactions. Western Digital added that the new drives are currently undergoing qualification with multiple hyperscale customers, reflecting early interest in quantum-resilient storage technologies.
Earlier in May, Baird raised the firm’s price target on Western Digital Corporation (NASDAQ:WDC) to $450 from $310 and maintained an Outperform rating on the shares. The firm said its updated model, following the company’s Q1 results, points to another wave of accelerating demand for storage infrastructure.
Last month, Western Digital Corporation (NASDAQ:WDC) reported Q3 adjusted EPS of $2.72, versus the consensus estimate of $2.39. Revenue totaled $3.34B, versus the consensus estimate of $3.25B. CEO Irving Tan said the company delivered strong execution during the quarter, with revenue growth across all end markets alongside expanding gross and operating margins. Gross margin exceeded 50% during the period. Management also announced a 20% increase in the quarterly cash dividend to $0.15 per share, citing confidence in the durability of the business. Tan added that AI workloads ranging from training and inference to agentic and physical AI continue driving persistent storage demand, benefiting HDD deployments.
Western Digital Corporation (NASDAQ:WDC) develops and manufactures hard disk drive-based storage devices and data infrastructure solutions globally.
While we acknowledge the potential of WDC 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 WDC and that has 100x upside potential, check out our report about the cheapest AI stock.
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