Wall Street investors seem unnerved by Big Tech’s determination to keep pouring huge sums into AI infrastructure, as the one-month performance of the Magnificent Seven stocks indicates. Yet, several data center stocks continue to carry Buy ratings and offer significant upside, as the TipRanks Compare Top Data Center Stocks tool shows.
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This article highlights three such stocks: Microsoft (MSFT), American Tower (AMT), and Applied Materials (AMAT).
Microsoft (MSFT)
Microsoft is an American tech giant active across software development, cloud and artificial intelligence, hardware, and services. The company is known for the Windows operating system, Microsoft 365 productivity suite, and Azure cloud services. There is also the Copilot AI assistant, Xbox gaming consoles, the Bing search engine, and the professional networking platform LinkedIn.
While Microsoft’s shares are currently down about 23% year-to-date due to AI worries, more analysts have continued to emphasize the company’s AI leadership.
MSFT remains a Strong Buy based on analysts’ consensus and offers about 57% upside based on the average price target of $582.17. This breaks down into 34 Buys and 3 Holds issued over the past three months.
American Tower (AMT)
American Tower operates as a real estate investment trust that develops, operates, and owns multitenant communications real estate. It leases out space on wireless towers and in data centers.
Analysts currently consider AMT a Moderate Buy based on 10 Buys and five Holds recommended over the past three months. The stock offers about 24% upside based on its average price target of $213.14.
Applied Materials (AMAT)
Applied Materials is a U.S. materials engineering business that manufactures chipmaking equipment. The California-based company also produces tools for screens in smartphones and TVs and offers software and maintenance services for factories.
Applied Materials’ shares currently boast a Strong Buy consensus rating and offer about 20% upside. This is based on an average price target of $430.15.
