Data center stocks were flying high at the start of the year, but Wall Street turned sour on them quickly. They were among the biggest losers of the recent selloff. Most of the stocks that fell in the past few weeks weren’t just data center pure plays. Investors invested in pick-and-shovel plays during the rally, and these are mostly the stocks that fell significantly as the pendulum swung the other way.
DeepSeek caused a brief crash in data center stocks. These stocks then recovered early on as hyperscalers doubled down. But after Microsoft canceled two of its data center contracts, the bear market quickly returned to the sector. Recent tariff fears and a negative GDP outlook have also weighed in on this previously-hot sector.
The following data center stocks have plunged the most year-to-date in 2025.
An overhead view of a large-scale data center with rows of servers and blinking lights.
Methodology
For this article, I screened the worst-performing data center stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. 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).
15. Advanced Micro Devices Inc (NASDAQ:AMD)
Number of Hedge Fund Holders In Q4 2024: 96
Advanced Micro Devices Inc (NASDAQ:AMD) is a semiconductor company whose chips are widely used in data centers.
The stock is down significantly so far in 2025, primarily due to the broad-based decline in AI and semiconductor companies, though there are some internal factors as well.
For example, AMD’s AI revenue outlook for early 2025 disappointed investors despite management projecting strong double-digit growth for the full year. The slower-than-expected ramp-up in AI chip sales led to significant investor concerns.
AMD’s data center revenue grew by 69% year-over-year to $3.86 billion in Q4 2024, and it fell short of the $4.14 billion expected by analysts. It also reported a sharp decline in gaming revenue (down 59% year-over-year) and a 13% drop in embedded segment revenue during Q4.
Following disappointing earnings and guidance, several analysts reduced their price targets for AMD stock.
The consensus price target of $155.14 implies 53.65% upside.
AMD stock is down 16.41% year-to-date.
14. Dell Technologies Inc (NYSE:DELL)
Number of Hedge Fund Holders In Q4 2024: 63
Dell Technologies Inc (NYSE:DELL) was previously seen as a laptop company, but these days, it is increasingly becoming involved in cloud computing and data centers.
The stock is down significantly so far in 2025 as Dell’s fiscal year 2026 revenue forecast of $101 billion to $105 billion fell short of analysts’ consensus expectations of $103.81 billion.
Its Q1 revenue projection of $22.5 billion to $23.5 billion was below the average analyst estimate of $23.59 billion as well.
Plus, Dell experienced headwinds in its core PC market due to unfavorable macroeconomic conditions and slowing demand for consumer electronics.
The consensus price target of $141.24 implies 47.49% upside.
DELL stock is down 16.65% year-to-date.