30 Best and Worst Data Center Stocks

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7. CommScope Holding Company, Inc. (NASDAQ:COMM)

Upside Potential: 35%

Number of hedge funds: 38

CommScope Holding Company, Inc. (NASDAQ:COMM) provides infrastructure solutions for communication, data centers, and entertainment networks. The company supports a wide range of data center requirements and offers a variety of solutions, including optical fiber and twisted pair structured cabling, intelligent infrastructure management hardware/software, and network rack and cabinet enclosures. Its Connectivity and Cable Solutions (CCS) division accounts for approximately 50% of total revenue. In the third quarter of 2024, this segment reported revenue of $737 million, a 17% year-on-year growth, with EBITDA increasing by 115%, driven by cloud and hyperscale data center growth, including GenAI projects.

During the third quarter 2024 conference call, management emphasized that their capacity investments have significantly contributed to EBITDA growth, and they plan to continue investing to further expand capacity in response to the strong demand from the hyperscale and cloud data center sectors. As part of the CommScope NEXT program, CommScope Holding Company, Inc. (NASDAQ:COMM) sold its Outdoor Wireless Networks (OWN) segment and Distributed Antenna Systems (DAS) in June 2024 for $2.1 billion, with the deal expected to close in the first quarter of 2025. Additionally, the company has raised $3.15 billion through debt to repay upcoming maturities and provide ample capital for future growth investments.

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