In this article, we cover the 7 Most Oversold Data Center Stocks to Invest In.
A number of data center stocks remain oversold as of the start of April amid increased execution and operational risks, despite massive expansion plans.
To meet the growing demand, technology companies continue to invest in cloud infrastructure and artificial intelligence despite fear-driven sentiment.
For instance, Meta has increased its commitment to $10 billion (up from $1.5 billion earlier) for its AI data center in El Paso, Texas. By 2028, the plant is expected to reduce local water consumption, add more than 5,000 megawatts of clean power to the grid, generate 300 permanent jobs, hire over 4,000 construction workers at peak, and put 1 gigawatt of capacity online.
Crossing the Atlantic, Mistral, the top AI provider in Europe, raised $830 million to purchase 13,800 Nvidia chips for a large data center near Paris. This was the company’s first debt raise, Reuters reported on March 30, 2026. The move demonstrates growing investor confidence as AI companies strive to compete with U.S. tech titans in cloud and AI services.
Meanwhile, environmental activists in the United Kingdom organized protests against new data center developments in February 2026, citing their extensive community impact and high electricity and water requirements. Oliver Hayes, Head of Campaigns at Global Action Plan, issued a statement:
“Big Tech’s unchecked construction of hyperscale AI data centers is putting the UK’s climate targets at risk.”
At the same time, broader tech companies, which continue to drive U.S. equity indices, are currently under pressure amid macro volatility, including the worsening Iran crisis, as of the end of March.
Rapid AI infrastructure buildouts, execution risks, and macroeconomic uncertainty have gradually pushed several data center stocks into oversold territory. However, that backdrop may present new opportunities for investors who are looking to gain access to cloud infrastructure, high-performance computing, and artificial intelligence.
With this background in mind, we will now jump to our list of the 7 most oversold data center stocks to invest in.
Our Methodology
To compile the list of the most oversold data center stocks, we used the Finviz screener to identify stocks with an RSI below 40. Additionally, while these stocks have declined over 15% year-to-date, they hold upside potential of at least 15%. We also limited our selection to companies that have recently reported noteworthy developments likely to affect investor sentiment. Finally, we ranked the stocks by their upside potential.
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).
7. QUALCOMM Incorporated (NASDAQ:QCOM)
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the most oversold data center stocks to invest in.
Analysts’ views on Qualcomm Incorporated remain divided as of April 1, 2026, with roughly 60% of covering analysts holding mixed ratings. Yet the $150 consensus price target implies roughly 20% upside.
Recently, analysts at Goldman Sachs discussed QUALCOMM Incorporated’s outlook.
Goldman Sachs initiated coverage on Qualcomm Incorporated on March 30, 2026, with a “Neutral” rating and a $135 price target. According to analyst James Schneider, Qualcomm Incorporated is leveraging its intellectual property in related industries, including data centers, PCs, and automobiles, to diversify its revenue sources. At the same time, the firm anticipates that the company’s short-term fundamentals would be impacted by share losses at key smartphone customers, especially Apple.
Previously, on March 26, Bernstein reduced its price target from $175 to $140 and downgraded Qualcomm Incorporated from “Outperform” to “Market Perform.” The investment firm said consensus estimates now appear excessively optimistic and mentioned that memory cost concerns could have a negative impact on smartphone shipments. Additionally, Bernstein pointed out that the risks associated with smartphone weaknesses and the impending expiration of the Apple license deal are unlikely to be completely outweighed by potential narrative tailwinds from buybacks and data center initiatives.
Qualcomm Incorporated develops and commercializes foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives.
6. Everpure, Inc. (NYSE:PSTG)
Everpure, Inc. (NYSE:PSTG) is included in our list of the most oversold data center stocks to invest in.
As of April 1, 2026, more than 70% of covering analysts remain bullish on Everpure, Inc., while the consensus price target of $90 indicates about 45% upside.
Northland raised its price target to $81 from $77 on March 9, 2026, upgrading Everpure, Inc. from Market Perform to Outperform. Large deal win rates helped short-term bookings increase from 21% year-over-year to 39% year-over-year in the January quarter, demonstrating the company’s rapid bookings growth and bolstering guidance for the April quarter. Given the market opportunity, Northland considers the moderate enterprise storage growth projections in the FY27 guidance to be conservative.
Piper Sandler reaffirmed its “Overweight” rating with a $92 price target on March 16, highlighting the shift in cloud storage demand from hard-disk drives to flash and solid-state storage driven by AI applications. According to the firm, Everpure, Inc. has six or seven proofs-of-concept with leading cloud providers, and its solutions offer a better total cost of ownership, as they are faster, more power-efficient, and operationally better. This put the company in a strong position to take advantage of the growing AI storage industry.
Everpure Inc. is a data storage and management hardware and software company. It provides enterprise-class solutions, including all-flash storage arrays, cloud-native Kubernetes data management, and AI-driven infrastructure platforms. Its technology enables organizations to modernize hybrid cloud environments, protect critical data, and optimize performance for traditional and high-performance computing workloads.
5. Hut 8 Corp. (NASDAQ:HUT)
Hut 8 Corp. (NASDAQ:HUT) is one of the most oversold data center stocks to invest in.
Copyright: ralwel / 123RF Stock Photo
Hut 8 Corp. 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.’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. 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. 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., 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. 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. continues to expand its software and cybersecurity footprint.
On March 24, 2026, Broadcom Inc. 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.’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. 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. 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. 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., 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. 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. 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 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 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 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.. 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.’s $3.5 billion hardware acquisition, completed before obtaining compute contracts, indicates robust underlying demand.
As IREN Limited 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’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 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.
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