10 Best Performing Data Center Stocks So Far in 2025

3. Super Micro Computer Inc. (NASDAQ:SMCI)

YTD Returns: 84.0%

Number of Hedge Fund Holders: 45

Super Micro Computer Inc. (NASDAQ:SMCI) specializes in the design, development, and manufacturing of high-performance and energy-efficient servers, storage systems, and networking solutions. Its products are widely deployed in data centers, cloud computing, AI, 5G, IoT, and edge computing. Given the high power consumption associated with high-performance computing, Supermicro’s liquid cooling solutions can lower operating expenses by up to 40% and enhance data center efficiency by improving Power Usage Effectiveness (PUE), a key metric comparing total facility power usage to IT equipment power consumption.

While Super Micro Computer Inc. (NASDAQ:SMCI) remains a significant player in the data center industry, its stock faced intense pressure in 2024 following allegations of financial and accounting irregularities by the now-defunct short-seller Hindenburg Research. From its peak in March 2024 to mid-November, the stock plummeted nearly 85% and ended the year with a modest 7.2% gain, underperforming the SOX Index by 12%.

In 2025, Super Micro Computer Inc. (NASDAQ:SMCI) has staged a remarkable recovery, surging 84% year-to-date. The rally began in early February when the company announced the date for its preliminary Q2 2025 results, signaling progress on its quarterly and annual filings. With such a sharp price movement in a short period, Super Micro Computer Inc. (NASDAQ:SMCI) currently has a consensus downside potential of 30%. Notably, on February 21, Goldman Sachs raised its price target from $32 to $36 while maintaining a Neutral rating.