In this article, we will list the 5 Most Oversold Data Center Stocks to Invest In. Please visit 7 Most Oversold Data Center Stocks to Invest In if you’d like to see an extended list and the methodology behind it.
5. Hut 8 Corp. (NASDAQ:HUT)
Hut 8 Corp. (NASDAQ:HUT) is one of the most oversold data center stocks to invest in.
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Hut 8 Corp. (NASDAQ:HUT) remains a “Buy” by all covering analysts as of April 1, 2026. Meanwhile, the $70 consensus price target translates into over 45% upside potential.
Arete began coverage on March 23, 2026, with a CA$186.6 price target and a “Buy” rating. The analyst emphasized Hut 8 Corp. (NASDAQ:HUT)’s 15-year River Bend lease, which guarantees steady revenue and is fully supported by Google’s rent payments. The majority of operational expenses are passed through, resulting in extremely high margins and an average annual operating income of $454 million while maintaining a low cost of debt for its data center.
Following a conversation with CFO Sean Glennan, Benchmark reaffirmed its $85 price target and “Buy” rating on March 24. According to Glennan, Hut 8 Corp. (NASDAQ:HUT) would focus on completing the River Bend AI data center, converting pipeline capacity into contracts, and securing power in 2026.
Glennan also emphasized that Hut 8 Corp. (NASDAQ:HUT) intends to differentiate itself by completing projects quickly and effectively, in contrast to many rivals who are often perceived as comparable, positioning it as a more dependable player in large-scale AI and computational infrastructure.
Hut 8 Corp. (NASDAQ:HUT), together with its subsidiaries, operates as an energy infrastructure platform that integrates power, digital infrastructure, and compute at scale to fuel energy-intensive use cases in the US and Canada. It operates through Power, Digital Infrastructure, Compute, and Other segments.
4. Broadcom Inc. (NASDAQ:AVGO)
Broadcom Inc. (NASDAQ:AVGO) is included in our list of the most oversold data center stocks to invest in.
More than 90% of covering analysts remain bullish on Broadcom Inc. (NASDAQ:AVGO) as of April 1, 2026, while the consensus price target of $472.50 implies over 50% upside.
That analyst confidence remains strong as Broadcom Inc. (NASDAQ:AVGO) continues to expand its software and cybersecurity footprint.
On March 24, 2026, Broadcom Inc. (NASDAQ:AVGO) signed a $970 million, five-year contract with the Defense Information Systems Agency and Carahsoft Technology Corp. The agreement comes as the DISA aims to simplify and consolidate software procurement across multiple agencies, which include DISA, the U.S. Air Force, the U.S. Space Force, and Combatant Commands.
Broadcom Inc. (NASDAQ:AVGO)’s private cloud platform, VMware Cloud Foundation, will be leveraged to streamline acquisition, improve pricing transparency, reduce costs, and support private cloud infrastructure, tactical edge operations, Zero Trust security, modern application development, and AI deployment.
On the previous day, Broadcom Inc. (NASDAQ:AVGO) announced the introduction of Symantec CBX, a cloud-based XDR platform that integrates Symantec and Carbon Black technologies into a single security offering. The solution helps under-resourced organizations tackle advanced cyber threats by integrating threat prevention, detection, data security, and AI-powered response tools.
Broadcom Inc. (NASDAQ:AVGO) operates as a developer, designer, and supplier of a range of semiconductor devices and infrastructure software solutions globally. It operates through the Infrastructure Software and Semiconductor Solutions segments. The company was incorporated in 1961 and is based in Palo Alto, California.
3. Super Micro Computer, Inc. (NASDAQ:SMCI)
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the most oversold data center stocks to invest in.
Only around 30% of covering analysts continue to rate Super Micro Computer, Inc. (NASDAQ:SMCI) as a “Buy,” as of April 1, 2026. However, the consensus price target of $35 implies over 50% upside.
A recent discussion of the company’s outlook took place at Citi.
The investment firm reduced its price target for Super Micro Computer, Inc. (NASDAQ:SMCI), on March 24, 2026, from $39 to $25 while keeping a “Neutral” rating, citing reputational risk related to export-control accusations implicating the company’s associates, including its co-founder. Citi is waiting for greater visibility into the company’s outlook.
The firm’s analyst stated the following:
“While the allegations target individuals, we expect elevated customer diligence and tighter supplier guardrails, which may lead to some suppliers restricting components and competitive losses. We believe this warrants a lower valuation until there is more visibility on the path forward and indications of unaffected customer/supplier confidence in the company.”
Northland lowered Super Micro Computer, Inc. (NASDAQ:SMCI) from “Outperform” to “Market Perform” with a $22 price target on March 23. The investment firm acknowledged that the separation of the Chief Compliance Officer and CFO roles was a positive step, but it saw the move as reactive and raised concerns about the governance structure. It also added that revenue and earnings growth may not occur until additional leadership changes, such as the separation of the Chairman and CEO roles, are addressed.
Super Micro Computer, Inc. (NASDAQ:SMCI) is a global technology company that designs and manufactures high‑performance server, storage, and networking solutions optimized for data centers, cloud, AI, and enterprise computing.
2. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is included in our list of the most oversold data center stocks to invest in.
Over 90% of analysts continue to rate Credo Technology Group Holding Ltd (NASDAQ:CRDO) as a “Buy,” as of April 1, 2026, while the consensus price target of $200 implies upside potential of almost 100%.
Citing a strong quarter fueled by AEC customer ramps and strength in optical DSPs, Susquehanna reduced its price target on Credo Technology Group Holding Ltd (NASDAQ:CRDO) to $170 from $230 on March 3, 2026, while keeping a “Positive” rating. The investment firm also noted that ZF Optics could make a significant contribution by FY27 following the acquisition of two new clients.
On the same day, BofA maintained a “Buy” rating but lowered its price target from $200 to $160. After fiscal Q3 results matched the strong pre-announcement, the investment firm increased its pro-forma EPS estimates for FY27 and FY28 by 5% and 6%, respectively. It attributed the price target drop to industry multiple compression rather than company-specific weakness.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is involved in high-speed connectivity solutions for optical and electrical Ethernet and PCIe applications. Its portfolio includes active electrical cables, optical digital signal processors, and SerDes IP and chiplets. The company supports hyperscalers and the HPC market through predictive link optimization, PCIe retimers, and integrated circuit solutions.
1. IREN Ltd (NASDAQ:IREN)
IREN Limited (NASDAQ:IREN) is one of the most oversold data center stocks to invest in.
Over 70% of covering analysts, as of April 1, 2026, remain bullish on IREN Ltd. (NASDAQ:IREN). At the same time, the consensus price target of $80 implies an upside of about 130% amid growing demand for AI-linked compute infrastructure.
Following IREN Limited’s (NASDAQ:IREN) most recent GPU purchases, H.C. Wainwright reaffirmed its “Buy” rating and $80 price target on March 5, 2026.
The investment firm stated that construction at its Childress and Mackenzie data center remains on schedule. It added that IREN Ltd. (NASDAQ:IREN)’s $3.5 billion hardware acquisition, completed before obtaining compute contracts, indicates robust underlying demand.
As IREN Limited (NASDAQ:IREN) remains focused on obtaining favorable financing for currently uncontracted hardware, the investment firm identified higher near-term dilution risk amid the company’s plans to potentially sell up to $6 billion in new shares. In the short term, this adds pressure, especially as capital intensity rises throughout the data center industry.
According to H.C. Wainwright, IREN Limited (NASDAQ:IREN)’s 2026 outlook turns less risky as a result of these developments, with management’s increased guidance bolstering confidence in expanding its AI Cloud division beyond its previous projections.
IREN Ltd (NASDAQ:IREN) is a technology company that operates high-performance, renewable energy-powered data centers specializing in Bitcoin mining and, increasingly, artificial intelligence (AI) cloud services. It provides infrastructure, including GPU-based computing, to support AI, machine learning, and high-performance computing (HPC) for large-scale clients.
While we acknowledge the potential of IREN 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 IREN and that has 100x upside potential, check out our report about the cheapest AI stock.
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