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October 30, 2024

Digital Realty see record-setting demand from AI

Since data center operator Digital Realty Trust (DLR) reported third quarter earnings results just a few days ago, the share price has advanced more than 10%.

The market was caught off-guard by the sheer strength of demand that is now being generated by customers looking to build out AI computing.

New bookings broke a record, while a wide range of key performance indicators are all moving in the right direction.

DLR was in fact our very first stock pick at 76research. When we officially launched earlier this year, our original memo on DLR was made available on our website and the stock became a top position in the Income Builder Model Portfolio.

DLR shares have performed quite well since we first presented the idea to pilot subscribers. At the time, the stock was badly misunderstood by the market. Investors were distracted by a flawed short-seller thesis and failed to recognize the upside opportunity in AI that was on the horizon.

DLR Total Return (6/22/2023 - 10/29/2024)

The market has begun to understand its mistake. DLR shares have delivered a total return of 81% since the publication of that first report, versus 33% for the S&P 500 Index.

But the outlook for DLR shareholders remains bright. The global AI data center buildout will be a multi-year, if not multi-decade, phenomenon—and it is just getting started.

In our latest 76report, we go in-depth on why we selected DLR in the first place, what the recent results really mean, and where we go from here.