Key Points
Nvidia (NASDAQ: NVDA) has seen a remarkable 750% increase in stock value over the past three years, driven by the rising demand for its high-performance chips in the artificial intelligence (AI) sector. In contrast, Digital Realty (NYSE: DLR), a real estate investment trust specializing in data centers, has reported a gain of about 55% during the same period. Digital Realty’s focus on housing AI technology positions it as a potential long-term investment opportunity as companies increasingly rely on data centers for AI operations.
Digital Realty is leveraging its infrastructure to support AI development, which includes a 2.7% dividend yield. With many AI industry leaders exploring the option to build or sell data centers, Digital Realty could be a logical acquirer, ensuring continued cash flow growth. While the current enthusiasm surrounds Nvidia, some analysts suggest that a strategic investment in Digital Realty could appeal to conservative investors looking to benefit from the AI boom in a less volatile manner.
