This article uses the TipRanks Compare Top Data Center Stocks tool to highlight three data center stocks that carry significant upside and have a Strong Buy rating from Wall Street: Equinix (EQIX), Digital Realty (DLR), and Dycom Industries (DY).
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Trade AMZN with leverageWhile investors’ focus is on Big Tech stocks following their latest earnings reports, this article spotlights three lesser-known companies that also play a key role in the current build-out of data centers for the AI era.
Equinix (EQIX)
Equinix is the world’s largest digital infrastructure company that operates as a real estate investment trust (REIT). It is headquartered in California and provides colocation services for companies to store and operate their servers and networking gear. It also offers other services, including connecting access to public cloud providers such as Amazon Web Services (AMZN) and Google Cloud (GOOGL) under a single platform.
Analysts’ Strong Buy consensus rating on EQIX is based on an average price target of $1,180.96 that implies about 9% upside.
Digital Realty (DLR)
Digital Realty also operates as a REIT and provides wholesale data center space. In fact, the company describes itself as “the world’s largest data center platform” with more than 300 data centers under its belt. It offers colocation and interconnection solutions to enterprise customers. Its networking offerings enable organizations to connect data, users, and applications with low latency.
Digital Realty’s Strong Buy rating comes with an average price target of $217.72 that suggests about 9% upside.
Dycom Industries (DY)
Dycom is a specialty contracting services company that offers services such as program management, planning, engineering, and design to the telecom infrastructure and utility industries. However, it also provides electrical contract services to data centers, supplying needed labor, tools, and equipment.
Dycom’s Strong Buy rating comes with an upside of over 10% based on an average price target of $465.50.
