Worries over Big Tech’s massive capital expenditure have weighed on the shares of Magnificent Seven stocks, which have all plunged year-to-date. Yet, several data center stocks continue to carry Strong Buy ratings with impressive upsides.
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Forget margin or options. Here's how the pros trade AMZNThis article uses the TipRanks Compare Data Center Stocks tool to highlight three such names. They are:
Applied Digital Corporation (APLD)
Applied Digital focuses on designing, building, and operating data centers that provide servers and cloud infrastructure services to customers scattered across North America.
Analysts have a Strong Buy consensus rating on APLD based on 10 Buys assigned over the past three months. The average APLD price target of $52.22 implies about 113% upside from current trading levels.
Snowflake (SNOW)
Snowflake is a Montana-based cloud-based data platform provider. Its platform enables businesses across the world to build data-driven applications and share data.
The company has expanded its offering with AI and is considered a critical player in the AI race, offering fully managed services for data storage and computing on public cloud platforms such as the Amazon Web Services (AMZN), Microsoft Azure (MSFT), and Google Cloud Platform (GOOGL).
Snowflake’s shares have declined about 31% year-to-date but still remain a Strong Buy based on analysts’ consensus rating and offer about 56% upside. This is based on an average price target of $237.03.
Arista Networks (ANET)
Arista is a California-based computer hardware company that makes and markets software-controlled cloud networking products such as ultra-fast Ethernet switches used by hyperscalers. Apart from switches, the company also manufactures extensible operating systems and plug-and-play networking cables.
The company also uses AI to automate tasks such as threat analysis and network troubleshooting. ANET enjoys a Strong Buy consensus rating from analysts and offers about 41% upside based on an average price target of $179.13.
