The rise of agentic AI has further increased the demand for GPUs, so much so that companies have decided to set up data centers for the sole purpose of renting out the compute capacity, also known as GPU-as-a-Service (GPUaaS). Some GPUaaS stocks have seen a meteoric rise in share price, mainly because AI inference requires continuous reasoning, along with interaction with other systems and the use of multiple tools.
This has also led to a rise in GPU spot pricing, making it more expensive to set up such operations. However, since the output is measured in cost per token, the most expensive equipment usually offers the best performance and therefore the lowest cost per token, which helps GPUaaS companies improve their margins.
Moreover, the demand is expected to stay high not just because AI agents need resources to work, but also because they need to constantly communicate. This communication is human-to-agent, agent-to-human, and, most importantly, agent-to-agent. Speaking to CNBC on May 9, CoreWeave CEO Mike Intrator touched on this topic:
You are going to see, as we get towards the back of 2026, an enormous acceleration of that leverage that everybody’s waiting for… you’re going to see an inflection as you move through Q3 and Q4 of this year.
This component of the AI trade is expected to continue in the coming months. There are a number of companies that will benefit from this, but the direct beneficiaries will be the ones renting out GPUs to other businesses deploying agentic AI. Our article “7 Best Data Center GPU-as-a-Service Stocks to Buy” tries to identify exactly these stocks.
Our Methodology
To identify the 7 best data center GPU-as-a-Service stocks to buy, we reviewed various data center ETFs and financial media to shortlist companies operating in the data center niche. From these, we selected only those companies that derive a major chunk of their revenue from GPUaaS and can therefore be considered pure-plays. These stocks have also reported recent investor-worthy news and are listed in ascending order of the number of hedge funds holding them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Note: All share price data in the article is as per market close on May 12.
7. Duos Technologies Group, Inc. (NASDAQ:DUOT)
Number of Hedge Fund Holders: 13
On April 17, Ascendiant Capital Markets maintained a Buy rating on Duos Technologies Group, Inc. (NASDAQ:DUOT) while raising the firm’s price target. The firm increased its price target on the stock from $14 to $17. The price target revision came after DUOT reported an outstanding 2025 result earlier on March 31, with revenue surging to 271% to about $27 million for the full year. After the Asset Management Agreement with New APR Energy, results for the fourth quarter were up by 548% to $9.46 million.
Additionally, Duos Technologies Group, Inc. shifted away from its old rail business towards data center and AI. The company built more Edge Data Center platforms, launched GPU-as-a-Service, and a high-density EDC configuration. With the creation of a new Technology Solutions unit, the company expects to increase profits. Approximately $1 million in revenue from technology solutions was recorded in 2025, with the company expecting revenue for 2026 to exceed $50 million.
Duos Technologies Group, Inc. develops and provides intelligent technology solutions across North America. It also develops and deploys edge data center infrastructure and related hosting services, and delivers technology systems, integrated solutions, consulting, and energy-related services.
6. Applied Digital Corp (NASDAQ:APLD)
Number of Hedge Fund Holders: 40
On April 28, John Todaro, an analyst at Needham, assigned a target price of $48 to Applied Digital Corp (NASDAQ:APLD) and maintained a Buy rating on the stock. Owing to the incredible stock performance over the last month, the stock is closing in on Needham’s price target. The firm’s price target still offers 16% upside from the current levels.
On May 4, Applied Digital Corp announced the closing of a $300 million loan from Goldman Sachs, which can be repaid at any time without fees or penalties. This loan will be used to develop and construct the company’s third AI data center at its Polaris Forge 1 campus in Ellendale, North Dakota. The company expects to need additional financing to complete the project. The financing loan acts as a bridge facility with a 364-day maturity and bears interest at the Secured Overnight Financing Rate plus 275 basis points. Saidal Mohmand, Chief Executive Officer of Applied Digital, remarked,
This financing supports the continued development of our third AI data center at Polaris Forge 1 and reflects our disciplined approach to funding projects in line with construction timelines.
Applied Digital Corp builds and operates digital infrastructure for AI and computing companies in North America. The company provides data centers and GPU computing solutions for businesses working in AI. It is headquartered in Dallas, Texas, and was founded in 2021 by Wes Cummins and Jason Zhang.
5. IREN Ltd (NASDAQ:IREN)
Number of Hedge Fund Holders: 46
On May 5, IREN Ltd (NASDAQ:IREN) agreed to acquire Mirantis, a cloud infrastructure and Kubernetes-based orchestration services provider with enterprise support services. The deal was valued at about $625 million. With this acquisition, the company has expanded its portfolio in the AI market, strengthening its capabilities to deploy AI workloads. IREN can now track how well their systems are working to ensure high performance. Moreover, this will help the company in managing customer environments, add technical support, and expand its reach across enterprise and AI native clients.
Photo from IREN website
As AI competition intensifies, IREN Ltd is shifting its focus to become a major AI cloud provider, delivering large-scale data centers and high-performance GPUs necessary for training and running AI models. Moreover, the company said its plan to expand to 480 megawatts is on track. Meanwhile, Q3 revenue missed the Wall Street consensus as the price of bitcoin declined.
IREN Ltd operates in the data center business. The company owns and runs computing hardware, power systems, and data centers. It also mines Bitcoin by operating a peer-to-peer network of computers running Bitcoin software. The company was incorporated in 2018 and is based in Sydney, Australia.
4. Nebius Group NV (NASDAQ:NBIS)
Number of Hedge Fund Holders: 54
On May 12, Nebius Group NV (NASDAQ:NBIS) announced that it had begun construction on its flagship AI factory in Independence, Missouri. This marks the firm’s first infrastructure project at the gigawatt scale. It is a 400-acre facility designed to support large-scale AI workloads. This project is an extension of the company’s ambitions to become a leading service provider to companies looking for AI compute capacity.
Prior to the announcement, Tal Liani of Bank of America Securities had reiterated his Buy rating on the stock with a price target of $205. This reflects a 10% upside from the current stock price. The stock is expected to remain volatile, as analyst sentiment for NBIS often operates at the extremes of the spectrum. Notably, Morgan Stanley assigned a $126 price target to the stock on May 5, while Cantor Fitzgerald has a price target of $129, assigned on April 8.
Nebius Group NV is a technology company that provides infrastructure and services to AI builders worldwide. It offers Nebius AI, an AI-centric cloud platform that provides full-stack infrastructure, including large-scale GPU clusters, cloud services, and developer tools.
3. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 58
On May 8, Deutsche Bank raised the price target on CoreWeave, Inc. (NASDAQ:CRWV) to $135 from $125 and maintained a Buy rating on the stock. This reflects an upside of 18% from here on. The upward revision to the price target came after the company announced its Q1 2026 earnings.
The quarterly report came out on May 8. The firm reported revenue of $2.08 billion, which comfortably beat the Wall Street consensus of $1.97 billion. The Earnings per share came in at -$1.12, above the anticipated consensus of -$0.90.
Going forward, CoreWeave, Inc. expects revenue in the range of $2.45 billion to $2.6 billion in Q2, returning to low double digits by Q4. Operating income is likely to increase from $30 million to $90 million. Even though the company is generating healthy revenue, the profitability remains a question mark. The company’s finances are expected to stay under pressure in the short-term due to the massive spending on AI data centers. This was evident in the quarter in question, with technology and infrastructure costs increasing 127% to $1.27 billion.
CoreWeave Inc. is a cloud infrastructure technology company in the US. It offers its product, the CoreWeave Cloud platform, which helps businesses manage large-scale AI systems more efficiently. The company also provides services like GPU and CPU computing, data storage, networking, and AI development tools. It was founded in 2017 and is based in Livingston, New Jersey.
2. Core Scientific, Inc. (NASDAQ:CORZ)
Number of Hedge Fund Holders: 76
Core Scientific, Inc. (NASDAQ:CORZ) released its Q1 2026 earnings report on May 8. It reported revenue of $115.2 million, up from $79.5 million year over year. The Bitcoin miner company reported a loss of $347.2 million in Q1, a big drop from $576.3 million in Q1 2025. Following this news, the company’s stock price fell 7% in after-hours trading.
Despite the fall in self-mining revenue to $30.1 million from $67.2 million, the company’s revenue grew due to its colocation services, which generated roughly $77.5 million in Q1 2026, up from $8.6 million in the same period last year. Moreover, Core Scientific, Inc. is building data centers for AI ahead of schedule to meet high demand, spending more on development across multiple sites to achieve high targets. This ability to invest early and build quickly makes them stand out in the current market.
Core Scientific, Inc. provides infrastructure and services for AI-related computing workloads. The company offers hosting services to customers involved in cryptocurrency mining and machine learning projects. It was founded in 2017 and is headquartered in Dover, Delaware.
1. Vertiv Holdings Co. (NYSE:VRT)
Number of Hedge Fund Holders: 112
On April 28, Amit Daryanani of Evercore ISI reaffirmed a Buy rating and set a target price of $350 on Vertiv Holdings Co. (NYSE:VRT). This reflects an upside of 5% from here on.
This followed the company’s announcement of its Q1 2026 earnings report on April 22. It reported revenue of $2.649 billion, slightly missing the Wall Street consensus of $2.653 billion. The earnings per share came in at $1.17, which comfortably beat estimates of $1.01.
Going forward, Vertiv Holdings Co. expects an EPS of $6.35 at the midpoint on net sales of $13.75 billion for the full year. The free cash flow is expected to be $2.2 billion, exactly as the company previously guided. By region, VRT expects organic growth rates of the high 30s in the Americas, mid-20s in APAC, and flat in EMEA. Management reiterated the company’s critical role in data centers, noting its involvement in battery energy storage systems and microgrids.
Vertiv Holdings Co. is an electrical equipment & parts company that specializes in critical digital infrastructure technologies & life cycle services for data centers and communication networks
READ NEXT: 10 Best Stocks to Buy Before SpaceX IPO and 8 Best Cloud Computing Stocks To Buy In 2026.
