Investing in Equinix (EQIX) and Digital Realty Trust (DLR) for AI data center growth potential.
From Nasdaq: 2024-07-16 18:23:07
The rising demand for artificial intelligence (AI) is driving the growth of data centers, set to double in capacity to 21.0 zettabytes by 2027. Equinix (EQIX) and Digital Realty Trust (DLR) are key players in this expanding market, offering strong growth potential and dividend yield. EQIX has a market cap of $76.4 billion, while DLR commands a market cap of $49.8 billion. EQIX boasts 85 consecutive quarters of positive revenue growth and DLR is up 20.6% on a YTD basis. Both companies are important players in the data center industry, attracting investor attention. Equinix, based in Redwood City, operates over 210 data centers in 55+ major metros across 25+ countries, while Digital Realty Trust, based in San Francisco, owns, acquires, develops, and operates data centers worldwide. Experts have a “Strong Buy” rating on EQIX stock, with a mean target price of $902.09, suggesting an 11% upside potential. Similarly, DLR stock is rated a “Moderate Buy,” with a Street-high target price of $185 indicating a 14% growth potential. Both companies are positioned to capitalize on the growing demand for data centers driven by the AI revolution.
Read more at Nasdaq: 2 Passive Income Picks to Buy for AI Data Center Upside