In this article, we discuss 5 of the top data center companies in the US. If you want to check out some more of the top data center companies in the USA, go directly to Top 12 Data Center Companies in the USA.
5. Oracle Corporation (NASDAQ:ORCL)
Number of Hedge Fund Holders: 69
2021 Revenue: $40.479 billion
While it is known more for its databases and enterprise software services, Oracle Corporation (NASDAQ:ORCL) also has its own cloud business, and with it, the company has globally distributed data enters that provide secure and high performance environments. According to the company, Oracle Corporation (NASDAQ:ORCL)’s global cloud data center infrastructure includes data centers in 22 countries and serves customers from 40 different regions.
Oracle Corporation (NASDAQ:ORCL)’s data center business could also benefit from TikTok’s growth as the company has decided to use Oracle Corporation (NASDAQ:ORCL) as a cloud infrastructure partner to handle traffic for US user data.
69 hedge funds in our database owned shares of Oracle Corporation (NASDAQ:ORCL) at the end of the second quarter with First Eagle Investment Management being the top holder with a long position of over 25.9 million shares.
4. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 40
2021 Revenue: $57.35 billion
International Business Machines Corporation (NYSE:IBM) is a leading tech company that also has a cloud business. With IBM cloud, the company has more than 46 data centers across 9 regions and 27 availability zones.
Like many other tech companies this year, International Business Machines Corporation (NYSE:IBM) has faced headwinds.
On September 28, David Vogt of UBS cut his price target on International Business Machines Corporation (NYSE:IBM) to $112 from $118 and set a ‘Sell’ rating on shares. Vogt thinks International Business Machines Corporation (NYSE:IBM) faces incremental foreign exchange headwinds relative to mid July and International Business Machines Corporation (NYSE:IBM)’s consulting revenue growth is likely to slow faster thane expectations.
40 hedge funds in our database owned shares of International Business Machines Corporation (NYSE:IBM) at the end of Q2 2022. Arrowstreet Capital was among the top holders with a long position of more than 2.6 million shares.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 84
2021 Revenue: $16.675 billion
NVIDIA Corporation (NASDAQ:NVDA) is a leading semiconductor producer that also sells GPUs to data centers. Given that GPUs are in some ways superior to CPUs for certain applications used in data centers, NVIDIA Corporation (NASDAQ:NVDA) is a company that could benefit from the growth in data centers.
Given the large rally in NVIDIA Corporation (NASDAQ:NVDA)’s stock over the last ten years, however, a lot of the growth may have already been priced in but there could still be long term upside if the growth continues. On September 21, Ambrish Srivastava of BMO Capital cut his price target to $210 from $230 and kept an ‘Outperform’ rating. 84 hedge funds in our database owned shares in NVIDIA Corporation (NASDAQ:NVDA) at the end of the second quarter with Fisher Asset Management owning almost 7.6 million shares.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
2021 Revenue: $168.088 billion
Although it is better known for producing Windows, Microsoft Corporation (NASDAQ:MSFT) also has a huge cloud business in Azure which includes over 200 physical data centers around the world. Due to its competitiveness, Microsoft Corporation (NASDAQ:MSFT) is the second largest IaaS cloud services provider in the world. If it continues to grow, Microsoft Corporation (NASDAQ:MSFT) could have a very profitable data center business in the future given the economies of scale.
On September 29, Andrew Marok of Raymond James set an ‘Outperform’ rating and $300 price target on the stock, citing among other things, the company’s strong position in the public cloud.
258 hedge funds in our database owned shares of Microsoft Corporation (NASDAQ:MSFT) at the end of the second quarter with TCI Fund Management among the top holders with more than 19.6 million shares.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
2021 Revenue: $469.822 billion
In addition to its huge e-commerce business, Amazon.com, Inc. (NASDAQ:AMZN) also has the leading cloud business in the world in Amazon Web Services, which has many data centers worldwide. In terms of its financials, Amazon.com, Inc. (NASDAQ:AMZN)’s cloud business is growing quickly and profitable. For Q2 2022, Amazon Web Services grew 33% year over year to $19.74 billion in sales and generated $5.72 billion in operating income.
In the long term, Amazon.com, Inc. (NASDAQ:AMZN)’s earnings could increase if its cloud business continues its fast growth.
On September 29, Ronald Josey of Citi reitered a ‘Buy’ rating and a $185 price target on the stock, citing among other things steady Amazon Web Services growth.
252 hedge funds in our database owned shares of Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q2 2022. Fisher Asset Management owned 48.6 million shares in the second quarter.
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