We recently published a list of Why These 15 Data Center Stocks Are Plunging In 2025. In this article, we are going to take a look at where ZJK Industrial Co Ltd (NASDAQ:ZJK) stands against other data center stocks that are plunging in 2025.
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.
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).
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ZJK Industrial Co Ltd (NASDAQ:ZJK)
Number of Hedge Fund Holders In Q4 2024: 1
ZJK Industrial Co Ltd (NASDAQ:ZJK) makes precision fasteners, structural parts, and other components that are used in data centers.
The stock is down significantly so far in 2025 due to the company trading at expensive levels as the broader market turned bearish on data center stocks.
The company reported solid revenue growth in 2024, but it still faces supply chain ships. ZJK is also reliant on major clients like Nvidia for revenue growth.
On top of that, Jim Cramer said that the stock had flat revenue growth on CNBC’s Mad Money. The company later corrected this claim made by Cramer, but Cramer’s reach is far more than that of ZJK’s investor relations team, and many still have the wrong idea about the company’s growth metrics.
ZJK stock is down 48.34% year-to-date.
Overall, ZJK ranks 1st on our list of data center stocks that are plunging in 2025. While we acknowledge the potential of ZJK 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 ZJK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
