This article uses the TipRanks Compare Top Data Center Stocks tool to spotlight three data center-related names that hold significant upside and carry a Strong Buy rating from Wall Street: Arista Networks (ANET), Eaton Corporation (ETN), and Datadog (DDOG).
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These firms are lesser-known businesses that support Big Tech’s AI buildout through their services, including the management of physical infrastructure.
Arista Networks (ANET)
Arista is a California-based company that builds software-driven cloud networks for data centers and other digital infrastructure. Its core product is the Arista EOS, a Linux-based operating system that is fully programmable. The company also manufactures ultra-fast Ethernet switches and high-speed data center copper cables and optical transceivers used for converting electrical data into light signals for fiber optic cables.
Arista’s shares are up more than 10% year-to-date. Its Strong Buy consensus rating from analysts is based on an average price target of $187.38, suggesting approximately 30% upside.
Eaton Corporation (ETN)
Eaton is an Irish power management company that makes products designed for achieving energy efficiency in electrical, hydraulic, and mechanical applications. Its lineup includes a wide range of items such as circuit breakers and fuses, control panels, and transformers. The Dublin-based company also manufactures power distribution units, surge protection devices, hydraulics, and aerospace systems.
Eaton’s shares are up roughly 26% since the start of the year. Its Strong Buy consensus rating from analysts is based on an average price target of $451.67, implying about 14% upside.
Datadog (DDOG)
Datadog is a New York-based cloud-scale monitoring and security platform that provides developers and IT operations teams with the software to observe the performance and security state of their cloud applications.
The company’s shares have climbed by approximately 52% year-to-date. Its Strong Buy consensus rating from analysts is based on an average price target of $218, indicating about 6% upside.
