Nvidia Corporation (NASDAQ:NVDA) is highlighted as one of the best data center stocks to buy now, with a 36% year-to-date increase. Analysts at Oppenheimer reaffirmed an Outperform rating with a $200 price target ahead of the August 27 earnings release, expecting fiscal Q2 revenue of $45.8 billion and EPS of $1.00.

Oppenheimer analysts noted the strong adoption of Nvidia’s NVL72 rack-scale system by major cloud providers and increased capex outlook by top hyperscalers to $365 billion by 2025. China’s contribution remains small post H20 ban, with Nvidia having secured an export license for H20 GPUs.

Nvidia’s gross margins are projected to stay in the mid-70% range, supported by ongoing demand and product cycle. The company is seen as the best-positioned in AI infrastructure with accelerating investments in the AI and data center space. Nvidia designs GPUs used in gaming, AI training, and data center infrastructure.

While Nvidia shows potential as an investment, other AI stocks may offer greater upside with less risk. Investors seeking undervalued AI stocks can explore options beyond Nvidia. The company remains strong in AI infrastructure, but alternative investments may offer different opportunities.

Read more at Yahoo Finance: Oppenheimer Maintains Outperform on Nvidia (NVDA) as Hyperscaler Capex Accelerates