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 Nutanix Inc (NASDAQ:NTNX) 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 close-up of a laptop screen displaying cloud platform application software.
Nutanix Inc (NASDAQ:NTNX)
Number of Hedge Fund Holders In Q4 2024: 51
Nutanix Inc (NASDAQ:NTNX) is a cloud platform that lets organizations modernize their IT operations with web-scale engineering and consumer-grade design.
The stock is up significantly so far in 2025 as it announced a partnership with a major cloud service provider on top of an earlier November 2024 financial report that came in strong.
Its Q1 FY2025 results came in with sales growing 16% to $591 million and annual recurring revenue growing 18% year-over-year to $1.97 billion. FCF came in at $151.9 million, with a non-GAAP operating margin of 20%.
Nutanix also expanded its partnership with AWS and received recognition as a Leader in Gartner’s Magic Quadrant for both Distributed Hybrid Infrastructure and File and Object Storage Platforms. Plus, it is benefiting from potential market share gains following VMware’s acquisition by Broadcom.
Full-year FY2025 revenue is projected between $2.435 billion and $2.465 billion. Non-GAAP Operating Margin expected between 16% to 17%.
The consensus price target of $79.5 implies 10.99% upside.
NTNX stock is up 16.19% year-to-date.
Overall, NTNX ranks 12th on our list of data center stocks that are skyrocketing so far in 2025. While we acknowledge the potential of NTNX 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 NTNX but that trades at less than 5 times its earnings, check out our report about thecheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
