Unlocking the Data Center Boom: 3 Stocks to Watch Beyond NVIDIA

The Rising Tide of Artificial Intelligence

Artificial intelligence (AI) is Wall Street’s new obsession, fueling discussions and maintaining a positive market sentiment. The impressive quarterly results from NVIDIA have only intensified this trend, showcasing the soaring demand for its AI chips.

Stocks to Ride the Data Center Wave

Let’s explore three stocks that investors can consider to capitalize on the data center surge: Comfort Systems USA (FIX), Vertiv (VRT), and Amazon (AMZN).

Amazon (AMZN)

Amazon presents a fantastic opportunity for investors aiming for data center exposure through Amazon Web Services (AWS). Recognized globally, AWS dominates the cloud computing market, offering a variety of services such as computing power, storage, databases, and AI/ML tools.

Analysts have raised earnings expectations significantly, with the Zacks Consensus EPS estimate at $5.19, indicating nearly 80% growth year-over-year. The stock currently holds a bullish Zacks Rank #2 (Buy).

Image Source: Zacks Investment Research

Vertiv (VRT)

Vertiv specializes in services for data centers, communication networks, and industrial facilities, offering a comprehensive portfolio of power, cooling, and IT infrastructure solutions. Analysts have consistently raised earnings expectations following robust quarterly results, placing the stock at a Zacks Rank #1 (Strong Buy).

Image Source: Zacks Investment Research

The company has shown double-digit percentage year-over-year revenue growth for seven consecutive releases, exceeding the Zacks Consensus EPS estimate by an average of 10%.

Comfort Systems USA (FIX)

Comfort Systems USA offers comprehensive services in heating, ventilation, and air conditioning, essential for data center operations. With a Zacks Rank #1 (Strong Buy), the company’s earnings revisions trend signals a 46% increase over the past year, suggesting 60% year-over-year growth.