I'm LongbridgeAI, I can summarize articles.Analysts predict at least a 25% upside for data center stocks Iron Mountain (IRM) and Quanta Services (PWR), rating them Strong Buy. Both companies provide critical infrastructure for the AI boom. IRM expects over $1 billion in data center revenue this year, while PWR has rallied nearly 49% year-to-date. Despite initial pressure from calls to slow AI development, shares are rising, with analysts targeting significant gains over the next 12 months.
Shares in AI stocks are rising in Wednesday's afternoon trading after initial pressure from calls to slow down AI development. On Wall Street, analysts see at least 25% upside in data-center names Iron Mountain (IRM) and Quanta Services (PWR). Both stocks are rated Strong Buy, according to TipRanks' Compare Top Data Center Stocks tool. Quanta Services, with a current market cap near $96 billion, has rallied the most year-to-date. PWR stock is up by roughly 49% to $627.
These companies provide services and products critical to the smooth running of the physical infrastructure behind the AI boom.
Iron Mountain (IRM)
Iron Mountain is an American company that helps businesses to store and manage information. However, the company has since expanded into the data center business. It now offers digital infrastructure services.
The company buys, builds, and operates highly secure facilities. It leases space, power, and connection equipment in these facilities for AI workloads.
Iron Mountain's data center business has been growing rapidly. The company now expects to hit over $1 billion in revenue this year.
What's more, the firm is racing to connect 325 megawatts of capacity to the power grid. It expects to have those operational within the next 18 to 24 months.
Notably, IRM stock is up about 41% year-to-date. Yet, analysts expect the stock to jump by about 28% over the next 12 months. This is based on an average price target of $146.57.