Wall Street has soured on most AI and data center stocks in the past week. The latter category has been hit especially hard after Microsoft (NASDAQ:MSFT) canceled some of its data center leases.
It’s not that surprising, considering data center stocks managed to hold most of their gains despite DeepSeek mainly because Microsoft (and most other Big Tech companies) appeared to double down on AI and continue building out data center infrastructure. If Microsoft is getting cold feet about AI, the market has little reason to be optimistic.
All that said, you still shouldn’t dump data center stocks across the board. Not all data center companies are bad bets. Some are trading at very cheap prices and have room to deliver a lot more upside after they’ve been knocked down. If the AI rally picks back up, I believe the three stocks listed below stand to be among the top beneficiaries.
This post originally appeared at Money Morning.