Not many bright spots are there in tech at present, but few data-center stocks have continued holding up to become winners. Data centers are actually the hybrid amongst REITs and tech stocks, which are paying a huge amount of their earnings in the form of dividends for the purpose of favorable and viable tax treatment. The firms are property developers which own huge and climate-controlled buildings that incorporate networking gear and data servers. This is making sense that these data centers will fare well in circumstances prevalent today. As opposed to the owners of lodging, malls, and senior-living centers, these data centers are not impacted directly by the outbreak of coronavirus. In fact, the use of the internet has grown to a great extent as people are staying and working from home, socializing, and consuming content available online. There are no direct benefits for data centers through these trends, but their particular tenants do have. That would be helpful to insulate these data centers along with revenue streams from the latest slowdown of the economy.
There has been experienced constant development of digital infrastructure as we are moving towards economic growth in the future. Recently, a $1.4 trillion package has been announced by China as a stimulus for shifting to new infrastructure from traditional one; whereby, they will concentrate more on 5G, data centers, and alike. Now, let’s move to the list of data center stocks to buy now which is shared by Insider Monkey.
At the top of the list is Nvidia Corporation which is the best data center stock at present to buy. This is a US-based multinational organization that is engaged in the manufacturing of GPUs for professional and gaming markets. The company is also manufacturing SoCs for the automotive and mobile computing market. The total Number of Hedge Funds of Nvidia Corporation is 82 and the value of Hedge Funds holdings is around $7.6 billion. The second best data center stocks company on the list is Micron Technology Inc which is also an American-based company involved in the production of computer data storage and computer memory comprising USB flash drives flash memory and dynamic random access memory. The revenues of the company in the 3rd quarter of 2020 were $5.44 billion and $4.80 billion during the 2nd quarter. The total number of Hedge Funds of the company is 79 and the value of Hedge Funds holdings of the company is $4.5 billion. For more details, you can read 10 Best Data Center Stocks To Buy Now by Insider Monkey.