20 Best Data Center Stocks to Buy According to Billionaires

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11. Cisco Systems Inc. (NASDAQ:CSCO)

Number of Billionaire Investors: 15

Billionaire Holdings: $2.1 billion

Number of Hedge Fund Holders: 84

Cisco Systems Inc. (NASDAQ:CSCO) designs, manufactures, and sells networking hardware, software, telecommunications equipment, and other high-technology services and products. The company’s offerings include routers, switches, cybersecurity solutions, and collaboration tools, serving a wide range of industries and customers globally.

On February 25, in a positive move, Cisco Systems Inc. (NASDAQ:CSCO) and NVIDIA Corp. (NASDAQ:NVDA) announced an expanded partnership to accelerate AI adoption in enterprises by developing a unified architecture that simplifies the creation of AI-ready data center networks. Notably, Cisco had already reported strong order flow in its Q2 2025 earnings call.

On February 27, Citi analyst Atif Malik raised his price target on Cisco Systems Inc. (NASDAQ:CSCO) to $73 from $71, maintaining a Buy rating. His optimism stemmed in part from Nvidia’s strong earnings, which showed enterprise data center sales doubling year-over-year, driven by demand for AI model fine-tuning and agentic AI workflows. The analyst sees Nvidia’s outlook as reinforcing Cisco’s AI partnership and supporting its $1 billion AI order forecast from its recent earnings call. Citi continues to rank Cisco Systems Inc. (NASDAQ:CSCO) as its top communications equipment pick for 2025, citing its AI growth potential and attractive valuation.

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