5 Cheapest AI Data Center Stocks to Buy According to Billionaires Fatima Gulzar Wed, November 4, 2026 at 3:32 PM EST 9 min read CBRE +3.98% NVDA -2.74% MU -6.93% AVGO -2.04% SNDK -8.11% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
AI data center investment keeps expanding, but the companies supplying that capacity face different paths to profit. The International Energy Agency's October 2026 report estimates that hyperscalers will spend more than $700 billion on capital investment this year, mostly on new data centers. The report also points out constrained electricity networks, connection queues, and slow permitting as obstacles. For investors, spending commitments establish an opportunity. On the other hand, access to power and the ability to deliver working infrastructure determine when that opportunity becomes revenue. Our earlier 7 Cheapest AI Data Center Stocks to Buy Now explores the industry's broader investment universe.
Leasing figures show why developers keep building. CBRE's first-half 2026 report found that supply across primary North American markets rose 33.7% year over year to 10,903 megawatts, while vacancy fell to 1.4%. Customers had already committed to 80.4% of capacity under construction. Average asking rents for deployments requiring three to ten megawatts rose 8.3% during the first half. Those figures suggest that demand persists to absorb new supply. But preleasing cannot eliminate construction delays or guarantee a project's eventual profitability.
The next phase could require substantial financing. In its 2026 Global Data Center Market Outlook, JLL projects roughly 100 gigawatts of additional capacity between 2026 and 2030. It estimates approximately $1.2 trillion in real estate investment and another $1 trillion to $2 trillion in tenant equipment spending. These estimates cover different parts of the buildout. So investors should not add them to unrelated spending forecasts. They still show why investors must weigh financing needs alongside projected demand. More capacity can create sales opportunities. It can also raise interest costs, depreciation and competition.
Construction costs add another constraint since JLL forecasts an average shell-and-core construction cost of $11.3 million per megawatt in 2026, up 6% from 2025. That figure excludes the tenant's technology fit-out, which can cost as much as $25 million per megawatt for AI infrastructure. Therefore, the buildout reaches well beyond processors: electrical installation, cooling and site development all influence the cost and timing of new facilities. 7 Best Data Center Engineering and Construction Stocks To Buy examines that part of the supply chain.
Meanwhile, the IEA's April 2026 analysis projects that global data center electricity consumption will roughly double from 485 terawatt-hours in 2025 to 950 terawatt-hours in 2030. It expects AI-focused facilities to grow faster but warns that equipment shortages and grid constraints could limit near-term expansion.
That distinction matters when searching for cheap stocks. A low forward price-to-earnings ratio depends on an earnings forecast that may change. Investors should ask whether growth comes from sustainable customer demand, favorable component pricing, acquisitions or unusually strong margins. Our 8 Most Undervalued AI Stocks to Buy According to Hedge Funds offers another perspective on that valuation question.
So, what are the cheapest AI data center stocks? We provided an expanded list of the 10 Cheapest AI Data Center Stocks to Buy According to Billionaires here. The top 5 stocks are provided below.
We considered US-listed AI data center companies that operate AI computing infrastructure or supply essential chips, memory, storage, servers, networking, electrical systems, and construction services. We screened for a positive forward P/E below 20 and quarterly revenue growth of at least 15% year over year.
Note: All data was sourced on November 2, 2026.
Then we ranked all stocks that met our criteria by Insider Monkey's 2026 Q2 billionaire count and broke ties with the lower forward P/E.
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Number of Billionaire Investors: 31
Western Digital Corporation (NASDAQ:WDC) supplies hard disk drives and storage platforms, which gives investors exposure to the data that cloud and AI workloads create. Its fiscal first-quarter revenue of $4.38 billion, up approximately 55% year over year. Non-GAAP gross margin reached 58.1%, and non-GAAP EPS increased 161% to $4.64. Free cash flow totaled $1.38 billion.
Management also forecast second-quarter revenue growth of 66% to 72%. That guidance supports continued demand, but investors still need to judge how much of the earnings strength can last through the storage cycle.12 Best Data Storage Stocks to Buy Right Now compares the broader opportunity.
Cloud revenue reached $3.87 billion in fiscal first-quarter 2027, up 54% from $2.51 billion a year earlier, and made up 88% of Western Digital's sales. Expanding cloud environments and AI storage needs drove demand for higher-capacity drives. Shipments of cloud exabytes increased more than 20%, while average selling prices per exabyte rose approximately 25%, so both higher volumes and stronger pricing supported growth. The cloud category includes AI and other cloud workloads. Its large contribution gives Western Digital substantial data center exposure, while a reversal in storage pricing could pressure profitability.
Number of Billionaire Investors: 34
Sandisk Corporation (NASDAQ:SNDK)'s latest results show how quickly AI-related storage demand can change its business mix. Its recent earnings release reported fiscal first-quarter revenue of $11.03 billion, versus $2.31 billion a year earlier. Data center revenue reached $4.80 billion, compared with $269 million, and increased 61% sequentially. Data centers therefore contributed approximately 44% of quarterly sales, and the company also served edge and consumer markets.
GAAP gross margin rose to 85.0% from 29.8% a year earlier. Management forecast next-quarter revenue of $12.2 billion to $12.6 billion and announced an eight-for-one stock split, and it expects split-adjusted trading to begin November 20.
Sandisk's Edge business remained its largest end market, generating $5.83 billion, up 320% year over year. Consumer revenue fell 39% to $397 million. The contrast shows how data center and Edge growth offset weaker consumer sales, while NAND pricing remains a risk to profitability. 8 Best Affordable AI Stocks to Buy Right Now explores other companies that benefit from AI investment.
Number of Billionaire Investors: 41
Broadcom Inc. (NASDAQ:AVGO)'s custom accelerators and networking products tie it directly to AI computing demand. 10 Best Semiconductor Stocks to Buy According to Billionaires provides a relevant ownership-based comparison. On October 26, financial partners announced a $63 billion financing structure for AI capacity that uses Broadcom technology for Anthropic. Under the planned transaction, a special-purpose vehicle would buy accelerators and networking equipment and lease them to Anthropic, and the partners expect deliveries to start in 2027. The financing amount does not represent revenue Broadcom has already earned.
The company's latest quarterly results showed revenue of $29.6 billion, up approximately 86% year over year. AI semiconductor revenue increased 221% to $16.7 billion. GAAP EPS reached $2.68, while adjusted EPS totaled $3.32. Free cash flow reached $13.7 billion, or 46% of revenue.
AI semiconductors made up approximately 56% of Broadcom's quarterly revenue. Management forecast $21.7 billion in fourth-quarter AI semiconductor sales, up 236% year over year, and noted demand for custom accelerators and networking.
Number of Billionaire Investors: 41
Micron Technology, Inc. (NASDAQ:MU) supplies the memory and storage that AI computing systems need. Its September 30 results showed fiscal fourth-quarter revenue rising 379.3% to $54.23 billion from $11.32 billion a year earlier, on strong AI-driven demand for memory and storage. GAAP EPS reached $32.87, and operating cash flow climbed to $43.97 billion from $5.73 billion.
The business is also changing how it contracts with customers. In its fiscal third-quarter filing, Micron described multi-year strategic customer agreements with take-or-pay volume commitments. Most included fixed pricing or minimum and maximum price bands. These structures improve visibility, but they do not remove manufacturing costs, investment requirements or exposure to shifts in industry supply.
Micron's Cloud Memory revenue reached $16.28 billion, versus $4.54 billion a year earlier, while Core Data Center revenue rose to $18.00 billion from $1.58 billion. Together, the units generated approximately 63% of quarterly sales. Micron also reported that server LPDDR SOCAMM revenue more than doubled sequentially, which ties its growth to demand for memory in server platforms. These business units cover broader cloud and data center demand, and changes in memory pricing and industry supply remain risks. 11 Best Semiconductor Stocks with Huge Upside Potential explores related suppliers.
Number of Billionaire Investors: 52
NVIDIA Corporation (NASDAQ:NVDA) supplies the computing and networking infrastructure customers use to train and run AI models. Its Data Center business gives the clearest measure of that exposure, spanning large cloud operators, AI infrastructure providers and enterprise customers.
The company's fiscal second-quarter filing reported $96.2 billion in revenue, up approximately 106% year over year. Data Center revenue increased 117% to $89.0 billion, approximately 93% of total sales. That concentration gives NVIDIA substantial direct exposure to AI infrastructure spending, and it ties the company's results closely to how long that spending cycle lasts.
On October 27, NVIDIA and Oracle confirmed general availability of Vera Rubin systems and Vera CPUs on Oracle Cloud Infrastructure and outlined a larger multi-gigawatt expansion. Existing availability and planned future capacity sit at different stages of commercialization.
NVIDIA reported $49 billion in hyperscale revenue, up 13% sequentially, with Blackwell demand driving the growth. That growth shows how large cloud customers' spending feeds its Data Center business. Expanding AI cloud and enterprise deployments add demand, while customer construction delays can disrupt the timing of new hardware installations. 8 Most Undervalued AI Stocks to Buy According to Hedge Funds examines the broader AI investment universe.
While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Click to continue reading and see the expanded list of 10 Cheapest AI Data Center Stocks to Buy According to Billionaires.
This article is originally published at Insider Monkey.
