Data centers have become the foundation of the digital economy, facilitating the storage, processing, and distribution of vast amounts of data that drive industries worldwide. According to McKinsey & Company, the global data center market is set for significant expansion through 2030, fueled by enterprise digital transformation and hyperscale cloud growth. Their analysis projects that global demand for data center capacity could grow annually by 19% to 22% between 2023 and 2030, ultimately reaching between 171 and 219 gigawatts (GW) of annual capacity (compared to 60 GW currently). As per McKinsey, at least double the data center capacity built since 2000 would have to be built in less than one-fourth of the time, to avoid a capacity shortfall.
At the start of the year, investor sentiment toward data centers soared following the high-profile announcement of Project Stargate, a landmark $500 billion initiative aimed at revolutionizing data center infrastructure. However, enthusiasm has tempered later in the first quarter as discussions have emerged over potential repealing of the CHIPS Act. This legislation was originally designed to strengthen U.S. semiconductor manufacturing and reduce reliance on foreign suppliers, and it has played a key role in reshaping domestic production capabilities. The ongoing debate over its future has introduced uncertainty into the market, influencing investor outlooks.
Amid these discussions, a February 2025 PwC report underscores the strategic importance of expanding data center infrastructure—not only for technological advancement but also for geopolitical stability. Nations are increasingly wary of relying on critical infrastructure in high-risk regions. Geopolitical tensions and trade restrictions continue to expose vulnerabilities in global supply chains, prompting companies to implement contingency strategies. PwC further adds that expanding into new markets introduces additional challenges, including strict security and data privacy regulations, particularly in non-U.S. jurisdictions with stringent compliance frameworks. As a result, data center operators must carefully balance regulatory requirements, infrastructure investments, and market demand while navigating an evolving global landscape.
In a March 10 interview with CNBC, Charlie Sanchez, President of Infrastructure Advisory at Black & Veatch, discussed the ongoing surge in AI-driven infrastructure investment, particularly within data centers. He emphasized that despite trade tariffs, the commitment to data center development remains robust, both in the U.S. and globally. Companies recognize AI’s potential to optimize supply chains, enhance energy efficiency, and unlock new value streams. Sanchez also highlighted that AI not only drives demand for infrastructure but also serves as a key enabler for future efficiencies. Moreover, advancements in AI and processing power are already being incorporated into the design of next-generation data centers, reinforcing the necessity for continued development and investment in the sector.
In summary, data centers play a crucial role in the modern digital economy, supporting innovation and global connectivity. Their sustained growth trajectory, driven by AI, cloud computing, and enterprise digitalization, presents a strong investment opportunity. With backing from both corporate and government stakeholders, data centers will remain at the core of economic transformation, serving as vital infrastructure for the data-driven future.
With this in mind, let’s take a closer look at the 20 best data center stocks to buy according to billionaires.
A computer network engineering team setting up a server array in a data center.
Our Methodology
To determine the 20 best data center stocks to buy according to billionaires, we conducted extensive research to identify key players in the data center sector. Our approach involved analyzing exchange-traded funds (ETFs), industry research reports, and proprietary databases to compile a comprehensive list of companies operating in the data center industry. We then refined our focus to the top 20 data center stocks most favored by billionaire investors, leveraging Insider Monkey’s Q4 2024 database to extract data on billionaire holdings. We have arranged them in ascending order based on the number of billionaire investors holding stakes in each company as of Q4 2024. Additionally, we provided insights into hedge fund sentiment surrounding these stocks, using data from Insider Monkey’s Q4 2024 database of over 1,000 elite hedge funds.
Note: All pricing data is as of market close on March 12.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
20 Best Data Center Stocks to Buy According to Billionaires
20. Equinix Inc. (NASDAQ:EQIX)
Number of Billionaire Investors: 11
Billionaire Holdings: $1.2 billion
Number of Hedge Fund Holders: 56
Equinix Inc. (NASDAQ:EQIX) is the world’s largest third-party data center provider and a dominant player in the industry, holding a substantial market share. As a pure-play data center operator, the company specializes in colocation, interconnection, and internet connectivity, offering a neutral platform where networks seamlessly exchange data traffic. Equinix manages a vast footprint of 268 data centers, covering 33.7 million gross square feet across 34 countries on all major continents.
On February 12, Equinix Inc. (NASDAQ:EQIX) reported $8.7 billion in revenue for 2024, reflecting an 8% year-over-year increase and extending its remarkable streak to 22 consecutive years of quarterly growth. Adjusted EBITDA rose 9% to $4.0 billion, maintaining a robust 46.8% margin. For 2025, the company projected 7%-8% revenue growth (constant currency basis), a 190-basis-point expansion in adjusted EBITDA margin, and 7%-9% growth in adjusted funds from operations (AFFO) per share. The company also plans to allocate $3.2-$3.5 billion in capital expenditures to enhance data center capacity.
The xScale business saw exceptional growth, leasing 150 megawatts, while Equinix nearly tripled its investment capital in this area. The company also achieved its best-ever gross bookings in 2024, finalizing 16,200+ deals with 6,000+ customers, demonstrating strong demand and execution.
Following the earnings release, analysts remained bullish on Equinix Inc. (NASDAQ:EQIX). In the first week of March, Scotiabank analyst Maher Yaghi raised his price target to $1,040 from $1,033, reiterating an Outperform rating. Meanwhile, an analyst from Truist Financial maintained a Buy rating but adjusted his price target downward to $990, from the previous $1,028.
19. Dell Technologies Inc. (NYSE:DELL)
Number of Billionaire Investors: 11
Billionaire Holdings: $259 million
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) is a key player in IT infrastructure modernization, with expertise in artificial intelligence (AI), software-defined solutions, and cloud-native infrastructure. The company’s extensive product portfolio includes personal computers, servers, storage solutions, networking, software, and cybersecurity. Within the data center segment, Dell delivers advanced solutions such as servers, storage systems, hyperconverged infrastructure (HCI), cloud computing platforms, modular data centers, and networking equipment, positioning itself at the forefront of next-generation AI-driven data center infrastructure.
On February 27, Dell Technologies Inc. (NYSE:DELL) reported steady Q4 2025 earnings (FY ending January), though its Q1 2026 guidance fell short of expectations. Revenue for the quarter reached $23.9 billion, marking a 7% year-over-year increase, while EPS climbed 18% to $2.68, benefiting from improved cost discipline. The company highlighted strong AI-driven demand, reporting $1.7 billion in AI orders for the quarter, with $2.1 billion in shipments and a $4.1 billion backlog as customers adapt to evolving technology needs. However, Q1 2026 EPS guidance came in weaker than anticipated.
Following the earnings release, a Morgan Stanley analyst described the results as better-than-feared overall, acknowledging the mixed nature of Q4 performance but highlighting strong FY 2026 EPS guidance of $9.30, which exceeded forecasts. The analyst suggested that Dell could potentially surpass $10 EPS this year, given management’s tendency to issue conservative guidance. He maintained his FY 2026 EPS estimate of approximately $9.50, reaffirmed an Overweight rating, and kept his $128 price target unchanged.
18. Semtech Corp. (NASDAQ:SMTC)
Number of Billionaire Investors: 11
Billionaire Holdings: $248 million
Number of Hedge Fund Holders: 57
Semtech Corporation (NASDAQ:SMTC) is a semiconductor company specializing in high-performance analog and mixed-signal chips for data centers, IoT, and communications infrastructure. Its diverse product lineup includes optical networking chips, signal integrity solutions, and power management ICs, all designed to improve data center efficiency and high-speed connectivity.
On February 10, Semtech Corporation (NASDAQ:SMTC) saw a significant stock correction after it lowered its guidance for CopperEdge products. The company had initially projected at least $50 million in net sales from its CopperEdge solutions, which are used in active copper cables, but revised this forecast downward due to changes in rack architecture by a major customer. Investors are now looking ahead to the March 13 earnings report, where management’s insights on this adjustment and future guidance will be closely watched.
Despite this setback, on March 10, Stifel analyst Tore Svanberg reaffirmed a Buy rating on Semtech Corporation (NASDAQ:SMTC) but lowered his price target from $70 to $60. He expects the January quarter results to be in line with expectations, while April quarter revenue guidance may slightly lag behind his firm’s estimates but should remain aligned with market consensus. Although the price target was adjusted, Svanberg believes the recent selloff may have been an overreaction and continues to hold a positive long-term outlook on the stock, reaffirming confidence in Semtech’s investment thesis.
17. Uniti Group Inc. (NASDAQ:UNIT)
Number of Billionaire Investors: 11
Billionaire Holdings: $108 million
Number of Hedge Fund Holders: 30
Uniti Group Inc. (NASDAQ:UNIT) is a real estate investment trust (REIT) primarily focused on owning and leasing fiber-optic networks, which are critical for data transmission in data centers, cloud computing, and 5G networks. Its fiber infrastructure serves as a crucial backbone for numerous data center operations, delivering high-performance, secure connectivity essential for large-scale data processing and storage needs.
On February 24, Raymond James analyst Frank Louthan upgraded Uniti Group Inc. (NASDAQ:UNIT) to Strong Buy from Outperform, raising the price target to $8 from $6 earlier. He believes the company is poised to emerge as a hidden gem in the fiber-to-the-home market, especially as its merger with Windstream nears completion in mid-2025. Louthan highlights the long-term value of the company’s fiber-to-the-home segment, commercial fiber operations, and leasing business, asserting that these factors will create significant shareholder value for those willing to look past short-term uncertainties.
16. Microchip Technology Inc. (NASDAQ:MCHP)
Number of Billionaire Investors: 11
Billionaire Holdings: $687 million
Number of Hedge Fund Holders: 44
Microchip Technology Inc. (NASDAQ:MCHP) manufactures embedded control solutions, including microcontrollers, mixed-signal, analog, and Flash-IP integrated circuits. The company earns approximately 18%-20% of its revenue from the Data Center & Computing end market and offers a comprehensive portfolio of data center solutions that improve server storage performance, reliability, and security while also reducing overall power consumption.
Microchip Technology Inc. (NASDAQ:MCHP) is currently grappling with a revenue slowdown and rising inventory levels. In response, the company announced additional restructuring measures on March 3, 2025, aimed at cutting costs and optimizing manufacturing operations. This follows its earlier decision to shut down wafer fabrication operations in Tempe, Arizona. As part of the restructuring, Microchip is reducing its workforce by approximately 2,000 employees across various business units and support functions.
Despite these challenges, JP Morgan remains optimistic, with an analyst reiterating an Overweight rating and maintaining a $70 price target. The analyst views Microchip Technology Inc. (NASDAQ:MCHP)’s restructuring efforts as a credible strategy to enhance growth, profitability, and competitiveness, potentially supporting at least $3.0 in through-cycle earnings per share. Additionally, near-term fundamentals remain in line with expectations, and cyclical indicators suggest the company may be approaching a bottom, as per the analyst.
15. A10 Networks Inc. (NYSE:ATEN)
Number of Billionaire Investors: 11
Billionaire Holdings: $65 million
Number of Hedge Fund Holders: 30
A10 Networks Inc. (NYSE:ATEN) specializes in security and infrastructure solutions tailored for on-premises, hybrid cloud, and edge-cloud environments. The company serves a diverse customer base, including global enterprises, communication providers, cloud services, and web service providers. Its product portfolio features load balancing, threat protection, and secure cloud networking solutions, all designed to enhance the reliability, security, and performance of data centers.
In Q4 2024, A10 Networks reported $74.2 million in revenue, reflecting a 5% year-over-year increase, driven by both enterprise and service provider segments. The company also saw a notable improvement in profitability, with adjusted EPS rising 24% to $0.31. The CEO emphasized that 2025 will mark a year of innovation, as the company plans to expand its security offerings. With several years of R&D investments coming to fruition, A10 Networks aims to strengthen its competitive positioning among both service provider and enterprise customers.
Following the strong quarterly performance, BWS Financial analyst Hamed Khorsand reaffirmed a Buy rating on A10 Networks, maintaining a $24 price target. He highlighted the company’s better-than-expected Q4 results, with revenue surpassing the $70.7 million estimate, largely driven by stronger purchases from North American service providers, a market that had previously been inconsistent. The analyst believes that this revenue rebound has provided a boost to A10’s stock, and its ability to sustain earnings growth and positive free cash flow positions it well for continued valuation growth throughout 2025.
14. Super Micro Computer Inc. (NASDAQ:SMCI)
Number of Billionaire Investors: 13
Billionaire Holdings: $507 million
Number of Hedge Fund Holders: 45
Super Micro Computer Inc. (NASDAQ:SMCI) provides application-optimized high performance and high-efficiency server and storage systems for a variety of markets including the cloud service provider market, the enterprise market, the OEM appliance and large data center market, and the emerging 5G/Telco/Edge/IOT market.
Super Micro Computer Inc. (NASDAQ:SMCI)’s share price has been quite volatile in 2024 and 2025 as it faced risks of delisting. The company has finally filed its 10-K report and other financial with the NASDAQ and has received confirmation that it is now in compliance with the listing rules. However, some investors are still on the sidelines as risk over internal controls still overshadows the strength of the overall business.
On March 10, Rosenblatt analyst Kevin Cassidy resumed coverage of Super Micro Computer Inc. (NASDAQ:SMCI) with a Buy rating and a price target of $60. The analyst highlighted the company’s leadership in AI-driven server systems across the cloud, enterprise, and telecom sectors, noting that AI-related sales now make up nearly 70% of total revenue and continue to grow rapidly. Cassidy sees Super Micro’s expertise in large-scale liquid cooling as a key differentiator, as traditional deployments face cost, complexity, and reliability challenges. The analyst emphasized that Super Micro Computer Inc. (NASDAQ:SMCI)’s liquid cooling solutions double rack compute power, making them a game-changer for power-constrained data centers.
13. Seagate Technology Holdings Plc (NASDAQ:STX)
Number of Billionaire Investors: 14
Billionaire Holdings: $676 million
Number of Hedge Fund Holders: 52
Seagate Technology Holdings Plc (NASDAQ:STX) is a prominent provider of data storage solutions, specializing in the design, manufacturing, and distribution of hard disk drives (HDDs) and solid-state drives (SSDs). Their products serve a wide array of applications, ranging from personal storage and computing to enterprise data centers and cloud storage infrastructures.
In its Q2 2025 earnings call, Seagate Technology Holdings Plc (NASDAQ:STX) highlighted the growing role of HDDs in mass data storage, driven by the expansion of GenAI-generated imagery and video, which is expected to surge 170x from 2024 to 2028. Management emphasized that data centers will continue integrating both HDD storage and NAND flash memory to support diverse workloads. Seagate saw strong demand across most sectors, with cloud leading growth, driving a 50% YoY revenue increase and EPS rising to $2.00 from $0.12. The company resolved prior supply constraints and expects its Intevac acquisition to strengthen its HAMR technology business.
On March 12, a Bank of America analyst reaffirmed a Buy rating on Seagate Technology (NASDAQ:STX) but lowered the price target from $130 to $112. The analyst highlighted the strong cyclical upswing in the HDD industry, driven by growing demand from cloud, AI, and video storage. Seagate is well-positioned to boost revenue and expand margins as exabyte shipments rise. However, the analyst adjusted the price target to account for higher tax expenses, despite maintaining a positive long-term outlook on the company’s growth potential.
12. Juniper Networks Inc. (NYSE:JNPR)
Number of Billionaire Investors: 14
Billionaire Holdings: $361 million
Number of Hedge Fund Holders: 56
Juniper Networks Inc. (NYSE:JNPR) develops and markets networking products, including routers, switches, network management software, network security products, and software-defined networking technology.
On January 30, 2025, the U.S. Department of Justice filed a complaint seeking to block the closing of the $14 billion ($40 per share) acquisition of Juniper Networks Inc. (NYSE:JNPR) by Hewlett Packard Enterprise Company (HPE) which was announced last year. Both companies have planned to vigorously defend the transaction and remain fully committed to completing it. That said, Juniper Networks Inc. (NYSE:JNPR) continued to report healthy financial performance. In its preliminary Q4 2024, the company reported net revenues of $1.4 billion, an increase of 3% year-over-year. With a higher adjusted operating margin of 19.2%, net income stood at around $217 million, an increase of 10% year-over-year. The company hasn’t provided any future guidance due to the proposed acquisition.
Following the results, a Barclays analyst raised his price target on the shares to $39 from $37 and maintained his Equal Weight rating citing better-than-expected Q4 earnings due to Cloud and Enterprise growth and higher gross margin.
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.
10. Intel Corp. (NASDAQ:INTC)
Number of Billionaire Investors: 15
Billionaire Holdings: $953 million
Number of Hedge Fund Holders: 83
Intel Corp. (NASDAQ:INTC) is a global leader in the design and production of microprocessors and semiconductor components, powering everything from personal computers to data centers and Internet of Things (IoT) applications. The company is widely recognized for its advancements in CPU architecture and process technology, maintaining a strong presence in the semiconductor industry.
On March 12, Intel Corp. (NASDAQ:INTC) announced the appointment of Lip-Bu Tan as its new permanent CEO, effective March 18. The news was met with enthusiasm, sending the stock up 10% in after-hours trading. Tan, who previously served as CEO of Cadence Design Systems from 2009 to 2021, is regarded as a highly accomplished technology leader with extensive experience in the semiconductor industry. His appointment comes after years of speculation about potential strategic moves for Intel, including asset sales, spin-offs, or even a possible acquisition by another semiconductor giant or private equity investors. Many view this leadership change as a step in the right direction for the company.
Following the announcement, Wells Fargo analyst Aaron Rakers reaffirmed his Equal Weight rating on Intel Corp. (NASDAQ:INTC) with a $25 price target. While he acknowledged the appointment as a positive development, he believes the market reaction is largely driven by expectations of broader strategic changes, such as an accelerated Foundry strategy, potential spin-offs, or other corporate restructuring efforts. The move signals a potentially more dynamic approach to Intel’s future direction, as per the analyst.
9. Western Digital Corp. (NASDAQ:WDC)
Number of Billionaire Investors: 15
Billionaire Holdings: $710 million
Number of Hedge Fund Holders: 85
Western Digital Corp. (NASDAQ:WDC) is a prominent developer and manufacturer of data storage devices and solutions. The company’s product range includes hard disk drives (HDDs), solid-state drives (SSDs), and external storage systems tailored for both consumer and enterprise markets. Western Digital’s storage solutions find applications in personal computing, data centers, and cloud storage services, meeting the increasing global demand for reliable and high-capacity data storage.
In its Q2 2025 earnings, Western Digital (NASDAQ:WDC) showcased impressive results in the HDD segment, with data center revenue hitting record highs, thanks to its cutting-edge Ultra SMR technology. The company’s long-standing relationships with major cloud providers and enterprises position the company well to capitalize on the ongoing AI-driven data surge. Looking ahead, although demand from data centers and mobile markets is expected to remain robust in Q3, the company expects that overall bit shipments may decline due to weaker demand in PC OEM and consumer markets. The first half of 2025 is anticipated to experience inventory adjustments, but a recovery is expected in the second half, fueled by AI-driven PC adoption during the Windows refresh cycle.
On March 7, a Cantor Fitzgerald analyst lowered its price target on Western Digital (NASDAQ:WDC) to $65 from $95 while maintaining an Overweight rating. The analyst sees substantial upside potential after the completion of the spin-off of the NAND business. He remains optimistic about industry tailwinds and company-specific growth drivers but acknowledges risks such as potential oversupply, pricing pressure affecting profitability, and ongoing industry cyclicality.
8. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Billionaire Investors: 16
Billionaire Holdings: $659 million
Number of Hedge Fund Holders: 66
Hewlett Packard Enterprise Company (NYSE:HPE) is a leading global provider of enterprise IT solutions, specializing in hybrid cloud, high-performance computing (HPC), edge computing, and AI-driven data analytics. Its diverse product portfolio includes HPE GreenLake, a cloud services platform offering flexible, consumption-based IT solutions, alongside networking, storage, and compute solutions designed for enterprise needs.
As the company experiences steady growth, there is increasing industry emphasis on cost efficiency and profitability. On March 6, 2025, Hewlett Packard Enterprise (NYSE:HPE) approved a cost reduction initiative aimed at lowering structural operating expenses while maintaining its commitment to profitable expansion. This program, expected to be implemented through fiscal year 2026, aims to achieve gross savings of approximately $350 million by fiscal year 2027, primarily through workforce reductions.
On a fundamental level, Hewlett Packard Enterprise (NYSE:HPE) maintains a strong foothold in data center infrastructure, delivering servers, storage solutions, and networking products tailored for enterprise and hyperscale cloud environments. The company is also expanding its AI and HPC segments, focusing on AI-driven enterprise solutions and edge-to-cloud innovation. Additionally, HPE’s modular data centers and high-performance networking solutions reinforce its position as a key player in the evolving data center ecosystem.
7. Vertiv Holdings Co. (NYSE:VRT)
Number of Billionaire Investors: 17
Billionaire Holdings: $1.8 billion
Number of Hedge Fund Holders: 92
Vertiv Holdings Co. (NYSE:VRT) is engaged in the design, manufacturing, and servicing of critical digital infrastructure for data centers, communication networks, and commercial and industrial environments. The company specializes in thermal management, power distribution, and backup power systems, ensuring high efficiency and reliability in mission-critical operations.
With the rapid expansion of AI workloads, cloud computing, and 5G networks, Vertiv Holdings Co. (NYSE:VRT) is well-positioned to benefit from growing demand for power and cooling solutions in high-density data centers.
On March 7, RBC Capital analyst Deane Dray initiated coverage on Vertiv Holdings Co. (NYSE:VRT) with an Outperform rating and a $121 price target. The analyst noted that with 80% of its revenue derived from data centers, the company stands out as a leading provider of power and thermal management solutions, offering significant scarcity value in the industry. The company holds dominant market positions, ranking among the top three in multiple segments, including a top-two position in liquid cooling solutions. Additionally, its inclusion on hyperscale data center “approved vendor lists” serves as a substantial barrier to entry for competitors. The analyst views the recent DeepSeek-driven pullback as an attractive buying opportunity for investors.
6. Arista Networks Inc (NYSE:ANET)
Number of Billionaire Investors: 17
Billionaire Holdings: $1.6 billion
Number of Hedge Fund Holders: 78
Arista Networks Inc. (NYSE:ANET) specializes in data-driven, client-to-cloud networking solutions for large-scale AI, data center, campus, and routing environments. The company’s core offerings include its Extensible Operating System (EOS), ultra-low latency Ethernet switches, routers, and software-defined networking solutions, which are widely utilized by hyperscale cloud providers, financial institutions, and telecommunications companies.
On March 5, UBS analyst David Vogt upgraded Arista Networks Inc. (NYSE:ANET) from Neutral to Buy, raising the price target to $115 from $112. The upgrade was driven by expectations of strong data center capital expenditures, projected to grow at 25% annually through 2027. The analyst also highlighted the acceleration in key Arista metrics, such as purchase commitments, deferred revenue, and finished goods inventory, which he believes reinforced revenue recognition and suggested that the company’s 2025 revenue growth forecast of 17% may be overly conservative. The analyst also viewed the current share price as offering an attractive risk/reward opportunity.
5. Advanced Micro Devices Inc. (NASDAQ:AMD)
Number of Billionaire Investors: 18
Billionaire Holdings: $5.1 billion
Number of Hedge Fund Holders: 96
Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems. Over the years, AMD has gained notable market share in both the CPU and GPU markets, competing directly with Intel Corp. (NASDAQ:INTC) and NVIDIA Corp. (NASDAQ:NVDA).
However, investor sentiment around Advanced Micro Devices Inc. (NASDAQ:AMD) has been mixed, as the company’s AI sector growth has trailed behind expectations. Adoption of its advanced GPU products has been slower compared to competitors, leading to the perception that AMD is lagging behind NVIDIA despite its strong CPU market share gains. As a result, the stock has underperformed relative to other semiconductor peers.
Reflecting this cautious sentiment, JP Morgan analyst Harlan Sur reiterated a Neutral rating on Advanced Micro Devices Inc. (NASDAQ:AMD) with a $130 price target, in his March 12 report. However, he remained bullish on the company’s growth potential in 2025. Following discussions with company CEO Lisa Su, he highlighted AMD’s strong and diversified presence across data centers, enterprise, and client computing, which he believes could drive double-digit revenue growth exceeding 20%. AMD continues to expand its server CPU market share, particularly among cloud providers and hyperscalers, while improving server demand trends further bolster its outlook. Additionally, Sur expects desktop, notebook, gaming, and embedded markets to grow, with AI GPU revenues projected to rise over 60%, reinforcing AMD’s position in next-generation AI computing.
4. Marvell Technology Inc. (NASDAQ:MRVL)
Number of Billionaire Investors: 18
Billionaire Holdings: $2.1 billion
Number of Hedge Fund Holders: 105
Marvell Technology Inc. (NASDAQ:MRVL) is a leading semiconductor provider specializing in data infrastructure solutions across a range of industries, including data centers, enterprise networking, carrier infrastructure, consumer applications, and automotive and industrial markets. The company’s product portfolio includes custom Application-Specific Integrated Circuits (ASICs), electro-optics, Ethernet solutions, Fibre Channel adapters, processors, and storage controllers.
Marvell Technology (NASDAQ:MRVL) has been experiencing robust growth, fuelled by AI, machine learning, and cloud expansion. In Q3 2025, data center revenue surged 98% year-over-year and 25% sequentially, with Q4 revenue expected to grow more than 20% sequentially. CEO Matt Murphy attributed this strong performance to custom AI silicon production and rising cloud demand. The company also projects that the accelerated computing market will expand to $202 billion by 2028, growing at a 24% compound annual growth rate (CAGR) from 2023, reinforcing Marvell’s long-term potential in data infrastructure.
Recognizing Marvell’s strong outlook, DBS analyst Fang Boon Foo reaffirmed a Buy rating on the stock with a $130 price target in his March 13 report. He highlighted the company’s strategic positioning and solid growth prospects, emphasizing Marvell’s leadership in data infrastructure, cloud computing, and 5G. The analyst noted that the company’s expertise in communications and connectivity, along with its revamped product portfolio, which includes advanced 5G and AI-driven chips, aligns well with the growing demand for data-centric solutions. Furthermore, the company’s shift from consumer to enterprise markets, supported by strategic acquisitions and continuous innovation, enhances its competitive edge. With resilient enterprise spending and ongoing operational and capital structure improvements, the analyst sees multiple catalysts for future performance, reinforcing his bullish stance on the stock.
3. Micron Technology Inc. (NASDAQ:MU)
Number of Billionaire Investors: 18
Billionaire Holdings: $997 million
Number of Hedge Fund Holders: 94
Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally. The company is well-positioned to capitalize on technological advancements in AI, 5G, autonomous vehicles, and data centers.
Wells Fargo analyst Aaron Rakers reaffirmed a Buy rating on Micron Technology on March 12, citing a strong growth outlook. The company is poised to benefit from continued high-bandwidth memory (HBM) and data center demand, expected to drive momentum in mid-to-late 2025. While Q3 gross margins may decline due to a higher consumer mix and weak NAND conditions, stabilizing consumer markets and rising bit shipments should support revenue growth. Micron’s increasing HBM market share and upcoming HBM4 advancements further strengthen its long-term potential, creating an attractive risk/reward profile.
2. Broadcom Inc. (NASDAQ:AVGO)
Number of Billionaire Investors: 25
Billionaire Holdings: $14.5 billion
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is a semiconductor company that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Its products are used in end products such as enterprise and data center networking, including AI networking and connectivity, home connectivity, broadband access, smartphones and base stations, data center servers and storage systems, and factory automation.
Broadcom Inc. (NASDAQ:AVGO) witnessed strong year-over-year growth in its Q1 2025 (FY ending in November) revenue of $14.9 billion (+25% YoY). Among the segments, AI revenue in the quarter rose 77% year-over-year to $4.1 billion and infrastructure software revenue grew 47% to $6.7 billion. As evidence of strong profitability, adjusted EBITDA increased 41% YoY to around $10 billion and free cash flow rose 28% to $6 billion. Interestingly, the company reaffirmed that they are in discussion with three hyperscale customers who will generate a Serviceable Addressable Market (SAM) in the range of $60 billion to $90 billion in fiscal 2027.
After the earnings release, a Truist Financial analyst increased the price target for Broadcom’s shares from $260 to $267, while reaffirming a Buy rating. The analyst noted that although Q1 results exceeded expectations, Q2 guidance was largely driven by AI-related growth, which helped counteract weakness in Broadcom’s legacy semiconductor markets. Additionally, the analyst highlighted management’s mention of four “pre-customers” that have the potential to significantly boost annual sales growth beyond 30%, a pace described as “stunning.”
1. NVIDIA Corp. (NASDAQ:NVDA)
Number of Billionaire Investors: 29
Billionaire Holdings: $33.2 billion
Number of Hedge Fund Holders: 223
NVIDIA Corp. (NASDAQ:NVDA) stands as a leading innovator in the design and production of graphics processing units (GPUs), system-on-a-chip (SoC) solutions, and AI-driven hardware and software. The company’s GPUs are essential to high-performance computing, AI training, and inference, serving as the backbone of data center infrastructure worldwide. Its cutting-edge technology continues to drive advancements in artificial intelligence, deep learning, and data analytics, reinforcing the company’s pivotal role in shaping next-generation computing.
NVIDIA Corp. (NASDAQ:NVDA) posted robust Q4 2025 earnings on February 26, exceeding already high expectations. Revenue surged 78% year-over-year to $39.3 billion, while data center sales climbed 16% sequentially to $35.6 billion. Adjusted EPS grew 10% quarter-over-quarter to $0.89, and the company’s Q1 2026 revenue guidance of $43 billion surpassed forecasts, though its gross margin outlook was slightly weaker. The company has also swiftly ramped up Blackwell AI supercomputer production, generating billions in sales in its first quarter.
On March 12, investor sentiment turned highly optimistic after BofA analyst Vivek Arya described NVIDIA Corp. (NASDAQ:NVDA) as trading at an attractive valuation ahead of its much-anticipated GPU Technology Conference starting March 17. The event is expected to unveil major advancements in NVIDIA’s technology pipeline, including updates on Blackwell Ultra, Rubin, and next-generation networking aimed at improving scale-up capabilities. Additionally, key insights are expected into NVIDIA’s long-term opportunities in autonomous vehicles, physical AI, robotics, and quantum computing, reinforcing its strong growth trajectory. Arya reiterated his Buy rating on the stock and maintained a $200 price target.
Notably, we also featured NVIDIA Corp. (NASDAQ:NVDA) as one of our top picks in the ‘Growth at a Reasonable Price (GARP)’ stocks to buy now. The full article, published on March 10, can be accessed here.
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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