The Rise of Artificial Intelligence Stocks
Artificial intelligence (AI) has become a red-hot topic on Wall Street, with enthusiastic conversations around the technology contributing to a buoyant market mood.
Delving under the surface, there are three stocks quietly offering investors a slice of the AI pie: Vertiv VRT, Digital Realty Trust DLR, and Iron Mountain IRM.
Vertiv: Powering Through the AI Frenzy
Vertiv specializes in services for data centers, communication networks, and various facilities. The company’s range of power, cooling, and IT solutions have caught the eye of analysts, resulting in a Zacks Rank #2 (Buy).
Vertiv’s stock has shown remarkable strength this year, fueled by impressive quarterly results. The company is riding high on the AI wave, boasting its highest-ever backlog of $6.3 billion at the close of the last quarter.
Furthermore, Vertiv’s optimistic outlook for the fiscal year, with revised net sales guidance, has investors buzzing.
Digital Realty Trust: Leading the Tech Real Estate Sector
Digital Realty Trust is a key player in the ownership, acquisition, and management of tech-related real estate. Offering solutions for data centers, colocation, and interconnection, the company has seen its stock soar by 48% in the past year.
The market recognizes DLR’s strong position, with a diverse client base that includes major names like Oracle, Nvidia, and IBM. Additionally, its annual dividend yield of 3.3% surpasses the sector average.
Iron Mountain: Navigating the Global Data Landscape
Iron Mountain is a major player in the global data center arena, with facilities spanning the U.S., Europe, and Asia. The company’s colocation services have positioned it as a top contender in the rapidly expanding sector.
Analysts have raised their earnings estimates for the current fiscal year, reflecting a 4% increase from the previous year. Like Digital Realty, Iron Mountain offers a solid dividend yield of 3.0% annually.
The Thriving AI Investment Landscape
The AI craze shows no signs of abating, with many stocks reveling in significant gains this year, buoyed by the optimistic sentiment towards the technology.
For investors seeking exposure to the AI domain, Vertiv VRT, Digital Realty Trust DLR, and Iron Mountain IRM stand out as lucrative options. These stocks have received positive revisions in earnings estimates, reinforcing a bullish future outlook.
