As much as the artificial intelligence (AI) industry has grown just since the late-2022 launch of ChatGPT, it's still only a fraction of what it's likely to become.
Analysts with Cathie Wood's Ark Invest family of exchange-traded funds (ETFs) predict spending on AI infrastructure -- data centers, mostly -- is set to soar from last year's $500 billion to $1.4 trillion in 2030, jibing with an outlook from JPMorgan. That's annualized growth of more than 20%, offering investors an opportunity that's just too good to pass up.
But which stocks are best positioned to benefit from the industry's expansion? Probably not AI chipmaker Nvidia or its hardware peers; their very highest-growth days are arguably behind them. From here, it's the names building these AI data centers with the most to gain.
With that as the backdrop, here are three to consider adding to your portfolio this year.
Image source: Getty Images.
1. Vertiv
Vertiv (VRT 1.07%) isn't a data center stock per se. But data centers of the future will look considerably different -- for the better -- than they do now because of this company.
In short, Vertiv helps AI data centers handle the massive amount of heat their equipment creates.
It's always been a problem for any computer equipment, initially solved with simple fans and adequate air conditioning. As computing processors and racks of tethered motherboards have become more powerful and densely packed, their heat output increasingly risks permanent damage to this equipment. That's why Global Market Insights predicts the worldwide data center cooling market is set to grow at an average pace of more than 10% per year through 2034, led by the liquid-cooling solutions of the business, according to an outlook from Precedence Research.
This projection plays right into the heart of Vertiv's portfolio of offerings. Although it offers a range of conventional HVAC-style solutions, its flagship profit center is liquid cooling. Indeed, just earlier this month it unveiled a new modular liquid-cooling solution (called the MegaMod HDX) that combines direct-to-chip liquid cooling with air-cooled architectures, providing the flexibility that more and more data center operators want.
NYSE: VRT
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Cooling isn't all Vertiv does, for the record. The company also offers a range of power-management solutions like battery storage and distribution solutions that are also incredibly efficient, putting the company squarely in a business that Precedence expects to swell from less than $9 billion per year now to more than $16 billion in 2035.
In other words, Vertiv is very much in the right place at the right time. That's why its top line is up nearly 30% through the first three quarters of 2025, with profits more than doubling during this stretch. Look for more of the same going forward.
2. Digital Realty Trust
Digital Realty Trust (DLR 0.19%) isn't growing nearly as quickly as Vertiv is. But that's OK. Owning Digital Realty Trust provides you with a stake in a company that's not only smack-dab in the middle of the AI infrastructure industry but also gives you a holding that serves a considerably different purpose for its shareholders.
See, Digital Realty Trust is a real estate investment trust, or REIT for short. That just means it owns revenue-bearing real estate like hotels, office buildings, apartment complexes, or in this case, data centers. These recurring rent payments are ultimately turned into dividends.
NYSE: DLR
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As of the latest count, Digital Realty Trust owns and operates more than 300 different facilities in more than 50 different cities, and serves more than 250 Fortune 500 companies. That's enough to generate nearly $1.6 billion in revenue during the three-month stretch ending in September, up about 10% year over year, extending a long-established growth trend. This company boasts 20 consecutive years of top-line growth, in fact.
This growth isn't the crux of the reason you might want to own a piece of this AI infrastructure name, however. It helps, to be sure. But the chief feature of this REIT is its aforementioned dividend, which has grown steadily (even if modestly) for decades, offering an income component to an investment in an industry that isn't exactly known for paying dividends. Newcomers would be plugging into it while Digital Realty Trust's forward-looking yield stands at a solid 3.1%.
3. Nebius Group
Finally, add Nebius Group (NBIS 3.53%) to your list of AI infrastructure stocks to buy if you want to cash in on the industry's brewing growth.
Of the three names in focus here, it's the most straightforward. This company owns several data centers built specifically for AI developers. It's also the riskiest of the three tickers in question, however. Despite its third-quarter, year-over-year top-line growth of 355% to $146 million, its loss grew from nearly $44 million in Q3 2024 to a loss of nearly $120 million for the three-month stretch ending in September of last year. Nebius' bottom line seems to be moving in the wrong direction -- because it is.
These are mostly just growing pains. Business and profits are waiting for this data center specialist even if it's not perfectly clear when the company will get over its profit hump.
NASDAQ: NBIS
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This assurance lies in one of its more recent (and biggest-so-far) deals made in September with none other than Microsoft. While the specifics of the agreement weren't disclosed, the company was able to confirm a multibillion-dollar, multiyear deal to provide the software giant with AI infrastructure services from Nebius' facility in Vineland, New Jersey.
It's noteworthy simply because Microsoft could have easily built such a facility for itself or chosen any other number of AI infrastructure service providers. It still selected Nebius. There's a reason even if it's not entirely clear what that reason is.
Shares of course soared following the news. But in the absence of anything quite as exciting to continue fanning those bullish flames, those shares have withered since then.
The few analysts covering this name aren't deterred, though. Most of this small crowd still considers NBIS a strong buy, with a consensus target of $158.50 that's nearly 70% above the ticker's present price. Just bear in mind that while there's a bullish tailwind here, Nebius is also likely to dish out more volatility than most of the other names in the AI data center space.
