Investors are eyeing data center stocks as AI boosts demand for computing power. SoftBank is set to acquire DigitalBridge for $4 billion, sparking a surge in shares. Valued at $2.8 billion, DBRG’s stock is up 36% YTD, with a high valuation of 250 times earnings and a modest dividend yield.

SoftBank’s $4 billion buyout of DigitalBridge at $16 per share led to a 10% stock jump. The deal, aimed at AI expansion, caps DBRG’s near-term upside. The acquisition is expected to close in the second half of 2026, keeping shares near $16 until then.

DigitalBridge’s Q3 results showed strong growth and profitability, with fee revenue up 22% YoY. The company raised $1.6 billion in new equity in Q3, boosting future fee income. Free cash flow and liquidity remained robust, with Q4 expected to be the strongest quarter.

Analysts are bullish on DBRG stock, with RBC Capital Markets reiterating an “Outperform” rating and a $23 price target. J.P. Morgan sees a takeover range of $28 to $35 per share based on future earnings. The consensus rating is “Strong Buy,” with an average price target of $17.72, despite SoftBank’s $16 offer acting as a valuation anchor.

Read more at Yahoo Finance: SoftBank Is Spending $4 Billion on DigitalBridge. Is It Too Late to Buy DBRG Stock?