30 Best and Worst Data Center Stocks

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15. American Tower Corporation (NYSE:AMT)

Upside Potential: 25%

Number of hedge funds: 73

American Tower Corporation (NYSE:AMT) owns, operates, and develops multitenant communications real estate, including towers, distributed antenna systems, and data centers. The company became a significant player in digital infrastructure following its 2021 acquisition of CoreSite Realty Corporation in the U.S. CoreSite is a leading data center REIT, providing colocation and interconnection services with 28 network-dense, cloud-enabled data centers across 11 major markets, totaling approximately 4.6 million square feet. This acquisition has given American Tower Corporation (NYSE:AMT) a substantial competitive advantage, enabling the company to offer more integrated, end-to-end solutions for businesses requiring both wireless infrastructure (through towers and fiber networks it already owned) and data center services.

Data centers constitute around 10% of American Tower Corporation’s (NYSE:AMT) revenue. However, this business grew 10% year-on-year in Q3 2024. In comparison, the revenue from all other business segments combined declined by 1%, highlighting that data centers are bolstering the company’s top-line growth. JMP Securities recently initiated coverage on American Tower Corporation (NYSE:AMT) with a price target of $225, suggesting a robust 17% potential upside.

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