Members of the Magnificent Seven posted a brief rally earlier this week, but the sell-off pressure over the past month remains for most of these elite stocks. This retreat offers investors the opportunity to check out other data center stocks that have Buy ratings from analysts and carry impressive upside.
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New trading tool for APLD bulls/bearsThis article uses the TipRanks Compare Top Data Center Stocks tool to highlight three such names. They are:
Credo Technology (CRDO)
Credo is a California-based communication equipment company that operates on a fabless business model and designs and provides high-speed connectivity solutions that play a key role in infrastructural linkage in data centers. The company’s product lineup includes integrated circuits, electrical cables, and SerDes chipsets.
Analysts currently consider CRDO a Strong Buy based on 12 Buys and one Hold assigned over the past three months. The stock offers about 58% upside based on an average price target of $191.92.
Dycom Industries (DY)
Dycom is a Florida-based engineering and construction company that plans and designs aerial, underground, and buried fiber optic, copper, and coaxial cable systems. This equipment set is critical for connecting data centers and ensuring the rapid flow of massive data for AI workloads.
Dycom currently enjoys a Strong Buy consensus rating from analysts based on eight Buy ratings issued over the past three months. The stock offers an upside of roughly 18% based on an average price target of $462.88.
Applied Digital Corporation (APLD)
Applied Digital is an information technology services company that designs and operates large-scale data centers, offering high-performance computing capacity needed by hyperscalers for their massive AI workloads. The Texas-based firm also manufactures the specialized hardware critical to crypto-mining operations.
APLD is also currently considered a Strong Buy on Wall Street based on analysts’ consensus rating. The stock offers about 73% upside based on an average price target of $46.
