Servers remain one of the clearest ways to participate in the artificial-intelligence infrastructure buildout. The opportunity is no longer limited to a temporary GPU shortage: cloud providers and enterprises are expanding the computing, storage, networking, and power capacity needed to train and run increasingly continuous AI workloads. Dell’s February 26, 2026 update, which projected approximately $50 billion in AI-server revenue for its current fiscal year, illustrates how quickly the category has moved from a niche product area to a central data-center investment.
The theme spans several businesses with different economics. AI-server and original-equipment manufacturers provide complete systems and racks; chip companies supply CPUs and accelerators; networking vendors connect increasingly dense clusters; memory and storage companies manage the data; and the broader supply chain addresses cooling, power efficiency, and deployment. That breadth matters because AI inference, enterprise adoption, and rack-density constraints can support demand beyond the initial training cycle.
This countdown moves from #3 to #1, combining direct exposure to the servers theme with the underlying quality of each business. Cisco represents the networking layer, NetApp brings storage and data management, and Super Micro Computer offers the most direct exposure to AI-server systems and rack-level deployments. The ranking favors depth of thematic exposure first, with business fundamentals providing the next layer of separation.
The screen covers US-listed companies with market capitalizations above $500 million that have a meaningful connection to servers, data centers, or the supporting infrastructure. Companies were ranked first by the depth and specificity of their exposure to the theme, then by revenue and earnings growth, profitability, valuation, earnings execution, and the composite quality grade. The list is presented as a countdown, so the best pick is revealed at #1 rather than at the beginning.
What they do. The company sells data-center switching, network security, connectivity, wireless, collaboration, observability, and support products. Its revenue model combines hardware, software, subscription arrangements, technical support, managed services, and professional services sold directly and through partners to businesses, governments, institutions, and service providers. That broad portfolio gives Cisco a diversified position across campus, branch, public-cloud, private-cloud, and data-center networks.
Why it fits. Cisco is a servers stock through the networking layer rather than through server-box sales. Its data-center switching and interconnection products help move data between servers and across public and private infrastructure, while its security and observability tools address the complexity that comes with larger AI and cloud environments. That makes it a broader, less pure-play expression of the theme than a server OEM.
Numbers that matter. Cisco generated $63.3 billion of revenue and reported a 64.5% gross margin, 27.72% operating margin, and 20.95% net margin. Revenue grew 17.6% year over year, while earnings growth reached 52.1%; next-year EPS is estimated at 4.7958. The trailing P/E was 33.0511 and the forward P/E was 20.8768, a valuation that reflects a more mature and profitable profile than many specialized hardware vendors.
Recent momentum. Cisco’s latest reported quarter, dated August 12, 2026, produced EPS of $1.08 versus an estimate of $0.99, a 9.1% surprise. The company has beaten estimates in all eight quarters shown in the earnings history. The analyst snapshot lists 5 buys, 10 holds, and 1 sell, with a 3.9231 consensus score and an average target of $137.625, indicating positive execution but a predominantly cautious stance.
What they do. The company provides enterprise data-management software, storage systems, backup and recovery, ransomware protection, disaster recovery, and hybrid- and public-cloud services. Its portfolio includes ONTAP, AFF and ASA storage systems, StorageGRID, Azure NetApp Files, Amazon FSx for NetApp ONTAP, Google Cloud NetApp Volumes, and related operational and support services. NetApp monetizes infrastructure products alongside subscriptions, cloud services, storage-as-a-service, consulting, implementation, and ongoing support.
Why it fits. Storage is an essential server-adjacent layer because AI systems need high-throughput access to training data, model files, backups, and inference workloads. NetApp’s hybrid-cloud and public-cloud offerings connect on-premises systems with the major cloud environments, while its data protection and management products address the operational demands of larger data estates. It therefore offers more focused storage exposure than Cisco, but less direct server exposure than a system builder.
Numbers that matter. NetApp reported $7.4 billion of revenue, a 70.6% gross margin, 26.67% operating margin, and 19.18% net margin. Revenue increased 29.9% year over year, while earnings growth was 63.5%; next-year EPS is estimated at 8.5324. The trailing P/E was 26.6301 and the forward P/E was 22.0751, placing the company between Cisco’s mature valuation profile and the lower multiple attached to Super Micro Computer.
Recent momentum. NetApp’s September 2, 2026 report showed EPS of $2.09 against an estimate of $1.72, a 21.5% surprise. The earnings record shows seven beats in the eight quarters listed, with the only miss occurring when actual EPS matched the estimate at $1.91. Analysts list 2 buys and 11 holds, no reported sells, a 3.6 consensus score, and an average target of $195.125.
Pick #1Premium members only
Premium members see this pick's full breakdown — investment thesis, key financial metrics, recent earnings execution, and analyst consensus.
Premium members get the complete breakdown — pick rationale, financial metrics, and recent earnings detail.
This monthly screen starts with US-listed companies above $500 million in market capitalization and retains businesses with substantial exposure to servers or the supporting data-center ecosystem. The primary ranking factor is depth of exposure: direct server-system revenue ranks ahead of adjacent storage or networking exposure. Business fundamentals then determine the order among companies with relevant exposure, including revenue and earnings growth, margins, valuation, earnings consistency, analyst consensus, and the composite quality grade. The article is refreshed monthly, while spot prices are excluded from the evergreen comparison line because they can change materially between updates.
▌The Daily Briefing · Free
A new stock idea, every evening.
One stock worth watching each weekday, plus the analysis behind it. Free, in your inbox.
