We recently published a list of Why These 15 Data Center Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Insight Enterprises Inc (NASDAQ:NSIT) stands against other data center stocks that are skyrocketing so far in 2025.
There have been murmurs of a data center and cloud computing slowdown for the past two years, but none of that has materialized and the data center industry has instead accelerated as companies double down on AI. Even after DeepSeek, investors are pretty bullish on data center stocks as AI companies are learning from DeepSeek’s efficiency to create even more powerful AI models.
The data center sector is projected to grow at a 9.29% CAGR from 2025 to 2033, potentially reaching $494.5 billion by 2033. As such, there are plenty of opportunities if you dig deeper into the market and many of them have just started to rally this year. It’s a good idea to look into the ones spearheading the gains.
Methodology
For this article, I screened the top-performing data center stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
A professional at a computerscreen, working on a complex hardware solution.
Insight Enterprises Inc (NASDAQ:NSIT)
Number of Hedge Fund Holders In Q4 2024: 26
Insight Enterprises Inc (NASDAQ:NSIT) is a Fortune 500 Solutions Integrator that is active in the data center sector.
The stock is up significantly so far in 2025 as it posted solid Q4 2024 earnings. Net revenue was $2.1 billion in Q4 2024, down 7% year-over-year, and gross margin expanded to 21.2%, up 170 basis points from Q4 2023.
It also beat earnings expectations with $2.66 earnings per share versus $2.53 expected. Cloud services and Insight Core services showed double-digit growth in 2024. Moreover, it spent $200 million on share repurchases in 2024, with $300 million remaining in the program.
The consensus price target of $212.5 implies 27.56% upside.
NSIT stock is up 9.29% year-to-date.
Overall, NSIT ranks 15th on our list of data center stocks that are skyrocketing so far in 2025. While we acknowledge the potential of NSIT as an investment, our conviction lies in the belief that some 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 NSIT but that trades at less than 5 times its earnings, check out our report about thecheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
