30 Best and Worst Data Center Stocks

25. A10 Networks, Inc. (NYSE:ATEN)

Upside Potential: 8%

Number of hedge funds: 20

A10 Networks, Inc. (NYSE:ATEN) offers high-security application solutions designed for on-premises, multi-cloud, and edge-cloud environments, delivering performance at hyperscale levels. The company emphasizes a unified product architecture to achieve lower latency, higher throughput, and greater scalability. Its products are based on its proprietary Advanced Core Operating System (ACOS), which helps it manufacture differentiated products compared to its peers. Additionally, it supports next-generation AI data centers with an AI-ready platform, systems, and solutions.

On January 16, 2025, A10 Networks, Inc. (NYSE:ATEN)’s management presented at the Needham Virtual Growth Conference. Management provided an upbeat outlook, highlighting strong financial performance with a FY 2019 to 2023 revenue CAGR of 3% (versus 2% for comparable peers) and an EPS CAGR of a robust 18%. They expect to drive business value by selling more products to the installed base, prioritizing the creation of a more addressable market over the expansion of existing markets, and driving growth through hybrid solutions. The stock currently trades near its all-time high of $19.63, up around 35% over the past year. In November 2024, the stock was downgraded by Craig-Hallum, and since then, it hasn’t seen much analyst activity.