5 Underperforming Data Center Stocks to Buy According to Short Sellers

In this article, we will list the 5 Underperforming Data Center Stocks to Buy According to Short Sellers. Please visit the 7 Underperforming Data Center Stocks to Buy According to Short Sellers if you’d like to see an extended list and how we came up with the list.

5. Akamai Technologies Inc (NASDAQ:AKAM)

One-month Performance: -29.4%

On June 30, research firm Oppenheimer released an update on the Akamai Technologies Inc (NASDAQ:AKAM) stock, reiterating its Outperform rating and assigning a $180 price target. The price target reflects a 59% upside from here on.

One reason for such a high upside is the stock’s poor one-month performance of -28.8%. Oppenheimer believes the market is undervaluing the company’s cloud computing opportunity as AI inference starts to dominate AI workloads. By the end of 2028, the firm sees AKAM data center capacity as high as 100MW from 17MW at the end of 2025:

Our multi-stage DCF depicts our view that the market undervalues Akamai’s growth opportunity within cloud/AI inferencing.

Oppenheimer agrees with the Wall Street consensus of a healthy upside, as suggested by a 45% median upside according to 29 different analysts on Wall Street. However, it believes analysts are being too conservative and once the broader market realizes that, the stock could skyrocket.

While the Street leans on the positive side, we think its view is too conservative and undervalues the growth opportunity more than warranted,” Singh added. “As the growth opportunity is better understood, the stock should rally higher.”

This also makes the stock one of the most attractive underperforming plays out there and hence one of our top 7 underperforming stocks according to short sellers.

Akamai Technologies Inc (NASDAQ:AKAM) is a global cloud computing and cybersecurity company that has successfully pivoted to decentralized cloud computing solutions amid increasing AI-induced demand. The firm’s business can be divided into three distinct offerings of security solutions, compute solutions, and delivery solutions. It is headquartered in Cambridge, Massachusetts.