15 Best Data Center Stocks To Buy According to Jefferies, Citi and Wall Street Analysts

13. NVIDIA Corporation (NASDAQ:NVDA)

Average Analyst Share Price Target Upside: 25%

Average Analyst Share Price Target: $125.43

Number of Hedge Fund Investors  in Q1 2024: 186

NVIDIA Corporation (NASDAQ:NVDA) is the hottest stock in the AI sector right now. However, the fact that its shares are up by 135% over the past twelve months means that further upside is limited. NVIDIA Corporation (NASDAQ:NVDA) dominates the data center industry due to its plethora of GPUs and bundles. Not only does it sell standalone GPUs, but it also sells them in clusters that are tailor made for AI use. The GPUs’ tight integration with their CUDA software means that NVIDIA Corporation (NASDAQ:NVDA) customers enjoy a significant advantage when it comes to squeezing the most performance from the products. However, the very fact that it sits at the top of the AI supply chain leaves NVIDIA vulnerable to competitors and customers designing their own chips and regulators deciding that it has abused its competitive power. However, analysts are certain of robust demand for NVIDIA Corporation (NASDAQ:NVDA)’s products until at least 2025 end.

Aristotle Atlantic Partners mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter. Here is what the firm said:

“Nvidia contributed to portfolio performance in the second quarter as investors continued to view positively the new product roadmap for the rest of the year. The company sees accelerating demand for its GPU semiconductors from hyperscalers and enterprises. Nvidia’s GPU semiconductors continue to be the industry-leading building blocks of the accelerated computing data center architecture to drive AI compute and applications.”