In this article, we will list the 5 Best Stocks to Buy for Next-Gen Data Centers. Please visit 10 Best Stocks to Buy for Next-Gen Data Centers if you’d like to see an extended list.
For this article, we reviewed financial media coverage of companies tied to next-generation data center infrastructure, including AI accelerators, custom chips, networking, high-bandwidth memory, servers, power systems, and cooling solutions. We shortlisted stocks that appeared repeatedly across these sources and ranked them based on frequency of mention, relevance to the data center buildout theme, and recent business momentum.
5. Marvell Technology, Inc. (NASDAQ:MRVL)
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the best stocks to buy for next-gen data centers. On April 22, the company announced the acquisition of Polariton Technologies, a developer of high-speed, low-power plasmonics-based silicon photonics devices. Marvell said the deal strengthens its optical technology portfolio by adding advanced modulation capabilities for next-generation coherent and optical interconnect platforms. The company also said AI workloads are driving exponential growth in bandwidth demand, while data center architectures are moving toward 3.2T connectivity and beyond.
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The acquisition fits Marvell’s broader push into optical connectivity for AI infrastructure. In February, Marvell completed its acquisition of Celestial AI, whose Photonic Fabric technology is designed to support high-bandwidth, low-latency connectivity across large-scale AI deployments. Marvell said Celestial AI expands its optical connectivity capabilities for next-generation AI and cloud data center architectures, with initial revenue expected in the second half of fiscal 2028. The combination gives Marvell a clearer role in the shift from copper-heavy designs toward optical interconnects as AI clusters scale across racks and data centers.
Marvell Technology, Inc. (NASDAQ:MRVL) provides data infrastructure semiconductor solutions, including custom silicon, optical interconnect products, networking chips, storage controllers, security processors, and connectivity technologies for cloud, AI, enterprise, carrier, automotive, and industrial markets.
4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best stocks to buy for next-gen data centers. On April 16, Reuters reported that TSMC raised its annual revenue forecast and said it would increase capital spending this year to meet demand for advanced AI chips. The company expects 2026 revenue to grow more than 30% in U.S. dollar terms, above its prior forecast of close to 30%, while capital expenditure is expected to come in at the high end of its earlier $52 billion to $56 billion range.
The update supports TSMC’s role as the manufacturing layer behind AI data centers, where demand for GPUs, custom accelerators, and advanced packaging depends on leading-edge wafer capacity. Reuters said TSMC is expanding 3-nanometer wafer capacity across Taiwan, the U.S., and Japan, with greater mass-production capacity expected over 2027 and 2028. TSMC also forecast second-quarter revenue of $39 billion to $40.2 billion, compared with $30.1 billion a year earlier and $35.9 billion in the first quarter.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a semiconductor foundry that manufactures advanced chips for customers across AI, high-performance computing, smartphones, automotive, IoT, and other end markets.
3. Advanced Micro Devices Inc. (NASDAQ:AMD)
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best stocks to buy for next-gen data centers. On May 7, the company introduced its AMD Instinct MI350P PCIe GPUs to enable enterprises to deploy generative and agentic AI within existing data center infrastructure. AMD said the MI350P cards are dual-slot accelerators for standard air-cooled servers and are designed to run inference within current rack, power, and cooling environments rather than requiring a full infrastructure redesign.
The launch fits AMD’s broader push to compete in AI data center compute beyond traditional CPUs. Dell Technologies said its PowerEdge XE7745 and R7725 servers will support AMD Instinct MI350P PCIe GPUs starting in July 2026, expanding the Dell AI Platform with AMD for enterprises running AI workloads on premises. AMD’s latest results also showed momentum in the segment: on May 5, the company reported Q1 2026 Data Center revenue of $5.8 billion, up 57% year over year, driven by strong EPYC processor demand and the continued ramp of AMD Instinct GPU shipments.
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops CPUs, GPUs, adaptive computing products, AI accelerators, embedded processors, and related software for data centers, PCs, gaming, industrial, automotive, and communications markets.
2. Broadcom Inc. (NASDAQ:AVGO)
Broadcom Inc. (NASDAQ:AVGO) is one of the best stocks to buy for next-gen data centers. On May 5, the company announced VMware Cloud Foundation 9.1, describing it as a secure and cost-effective infrastructure platform for production AI workloads. Broadcom said the platform supports inference and agentic AI applications through an AI- and Kubernetes-native private cloud architecture, with integrated security and mixed compute support across AMD, Intel, and NVIDIA hardware.
The update fits the next-generation data center theme because AI infrastructure is moving beyond raw accelerator purchases into operational platforms that can manage cost, security, utilization, and scale. Broadcom said VCF 9.1 can reduce server costs by up to 40% through intelligent memory tiering, lower storage TCO by up to 39%, cut Kubernetes operational costs by up to 46%, and support 4x faster cluster upgrades with 2x higher fleet capacity. The platform also includes support for multi-tenant AI isolation, Arista Universal Cloud Network interoperability, and NVIDIA ConnectX-7 and BlueField-3 networking for high-speed AI workloads.
Broadcom Inc. (NASDAQ:AVGO) provides semiconductor and infrastructure software solutions, including custom AI accelerators, Ethernet switching, optical connectivity, storage, broadband, wireless, security, and enterprise infrastructure software products.
1. NVIDIA Corporation (NASDAQ:NVDA)
NVIDIA Corporation (NASDAQ:NVDA) is one of the best stocks to buy for next-gen data centers. On May 18, the company said its first Vera CPU systems had been delivered to Anthropic, OpenAI, SpaceXAI, and Oracle Cloud Infrastructure. NVIDIA described Vera as its first custom CPU, purpose-built for agentic AI workloads, including tool-calling, orchestration, reinforcement learning, data analytics, agent sandboxing, and long-context state management.
The launch fits NVIDIA’s effort to shape a full AI data center architecture, not just sell GPUs into it. Vera has 88 custom Olympus cores, 1.2 TB/s of memory bandwidth, and 50% faster per-core performance under full load, according to NVIDIA. The company said Oracle Cloud Infrastructure plans to deploy hundreds of thousands of Vera CPUs beginning in 2026, making OCI the first cloud provider to deploy Vera at hyperscale. NVIDIA also said Vera is part of its broader co-design stack alongside Rubin GPUs, BlueField 4 DPUs, Spectrum-X, and MGX rack architecture, with Vera serving as the host processor for Vera Rubin NVL72 systems.
NVIDIA Corporation (NASDAQ:NVDA) develops GPUs, CPUs, AI accelerators, networking products, software, and full-stack computing platforms for data centers, gaming, professional visualization, automotive, robotics, and other markets.
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some other 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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