We recently published a list of 20 Best Data Center Stocks to Buy According to Billionaires. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other best data center stocks to buy according to billionaires.
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.
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).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Number of Billionaire Investors: 29
Billionaire Holdings: $33.2 billion
Number of Hedge Fund Holders: 223
NVIDIA Corporation (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.
Overall, NVDA ranks 1st on our list of best data center stocks to buy according to billionaires. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
