Investing in AI Data Centers: Four Stocks with High Upside Potential

With the increasing presence of artificial intelligence (AI) in the technology sector, the demand for data center services is becoming crucial, especially to support the complexity of generative AI. As tech shares have recently faced a downturn, certain data center stocks are currently available at prices below their fair value. This scenario presents attractive opportunities for long-term investors looking to tap into the AI infrastructure growth.

For investors anticipating further expansion of AI across various sectors, enhancing exposure to data center providers seems timely. Here are four stocks that could potentially deliver returns of at least 30% and have garnered a Moderate Buy rating from analysts, indicating a strong belief in their capacity to meet the upcoming surge in AI-driven demand.

Vertiv: A Data Infrastructure Leader with Strong Fundamentals

Current Stock Forecast

12-Month Price Target:
$135.33
77.05% Upside

Rating: Moderate Buy
Based on 15 Analyst Ratings

Current Price	$76.44
High Forecast	$155.00
Average Forecast	$135.33
Low Forecast	$100.00

Vertiv Holdings NYSE: VRT, recognized for its data infrastructure technology, experienced a decline in stock price recently due to market fears, particularly regarding potential technology restrictions. However, its focus on essential services such as thermal management and power distribution positions it well for future growth, especially as AI adoption grows.

Despite recent volatility, analysts remain optimistic about Vertiv’s future. The consensus price target indicates an upside potential of over 65%. Additionally, Vertiv offers a modest dividend yield of 0.68%, adding to its appeal for growth-focused investors.

Nebius Group: Tapping into AI with Promising Prospects

Current Stock Forecast

12-Month Price Target:
$55.00
116.45% Upside

Rating: Buy
Based on 2 Analyst Ratings

Current Price	$25.41
High Forecast	$60.00
Average Forecast	$55.00
Low Forecast	$50.00

Nebius Group NASDAQ: NBIS is another company affected by the AI sell-off but has potential that analysts are keen to highlight. With over half of its revenue coming from its AI infrastructure segment and a partnership with major chipmaker NVIDIA, Nebius is well-positioned for the future.

Anticipated infrastructure developments, including the launch of the first NVIDIA GPU cluster, could further enhance its attractiveness as an investment. Analysts see an upside potential of about 122.58%, reflecting strong confidence in Nebius's future performance.

Dell Technologies: Partnering with Apple for Mobile AI Solutions

Current Stock Forecast

12-Month Price Target:
$141.24
45.31% Upside

Rating: Moderate Buy
Based on 19 Analyst Ratings

Current Price	$97.20
High Forecast	$160.00
Average Forecast	$141.24
Low Forecast	$116.00

Dell Technologies NYSE: DELL recently aligned with Apple NASDAQ: AAPL to enhance its mobile AI services. Apple aims to invest significantly in NVIDIA systems, with Dell serving as a vital partner in this strategic venture.

While Dell's stock hasn’t fluctuated as dramatically as some others, it remains below previous highs, suggesting potential for value-oriented investors. Analysts estimate an upside of nearly 46.82%, making Dell an attractive addition to investment portfolios.

Vistra: Powering AI’s Future through Energy Solutions

Current Stock Forecast

12-Month Price Target:
$162.83
36.44% Upside

Rating: Moderate Buy
Based on 13 Analyst Ratings

Current Price	$119.35
High Forecast	$231.00
Average Forecast	$162.83
Low Forecast	$82.00

Vistra NYSE: VST, an integrated power company, is emerging as a promising option linked to AI growth due to increasing power demands from the AI sector. By investing in low- and no-emission power production, Vistra aims to tackle sustainability concerns surrounding AI's environmental impact.

Presently facing stock price pressures, Vistra shares are trading near their 50-day low, attracting interest from analysts who maintain a Moderate Buy rating with a projected upside of over 31% from current levels.

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