30 Best and Worst Data Center Stocks

9. Nutanix, Inc. (NASDAQ:NTNX)

Upside Potential: 32%

Number of hedge funds: 50

Nutanix, Inc. (NASDAQ:NTNX) is a provider of software-defined hyperconverged infrastructure (HCI) platforms that combine computing, storage, networking, and virtualization into a single solution. This platform reduces cloud complexity, enabling businesses to operate applications and manage data seamlessly across public and private clouds, data centers, on-premises, and edge locations.

Nutanix, Inc. (NASDAQ:NTNX) bases its investment case on the secular trends of hybrid multicloud adoption and generative AI. The company has secured a leadership position in the HCI market and estimates a $76 billion total addressable market by FY 2027, providing a substantial runway for business growth. In mid-December 2024, UBS initiated coverage on Nutanix with a Buy rating and a price target of $81, indicating a 29% upside. Around the same time, a Morgan Stanley analyst also named it as a Top Pick with an unchanged Overweight rating but raised the price target to $85 from $78. The positive outlook is based on the view that Nutanix, Inc. (NASDAQ:NTNX) and similar stocks are entering 2025 with healthier budgets, better inventory positions, and improved valuations, following a softer IT spending environment in 2024.