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Artificial intelligence (AI) is Wall Street’s new obsession, with companies discussing the technology in a snowballing fashion and helping to keep market sentiment positive.
Interestingly enough, there are several stocks investors can tap into for exposure, including Vertiv (VRT - Free Report) , Digital Realty Trust (DLR - Free Report) , and Iron Mountain (IRM - Free Report) .
For those interested in exposure to the technology, let’s take a closer look at each.
Vertiv
Vertiv provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services. Analysts have taken their earnings expectations higher across nearly all timeframes, landing the stock into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Shares have been remarkably strong year-to-date, with performance boosted by better-than-expected quarterly results. Vertiv has continued to capitalize on the AI frenzy, exiting its latest quarter with its highest backlog in company history totaling $6.3 billion.
The company provided rosy guidance for its current fiscal year, upping its net sales guidance into a band of $7.450 – $7.690 million, with the midpoint reflecting a +$30 million upgrade.
Digital Realty Trust
Digital Realty Trust is engaged in the ownership, acquisition, repositioning, and management of technology-related real estate. Specifically, the company offers data center, colocation, and interconnection solutions for domestic and international tenants through its portfolio of data centers.
The market has fully taken note of DLR’s favorable position, with shares up a staggering 48% over the last year compared to the S&P 500’s 25% gain.
Image Source: Zacks Investment Research
It’s worth noting that Digital Realty has an extensive list of notable customers, including Oracle, Nvidia, and IBM. Shares presently yield a solid 3.3% annually, well above the respective Zacks Finance sector average of 2.2%.
Iron Mountain
Iron Mountain is a global data center leader with colocation facilities in the U.S., Europe, and Asia. With facilities in Asia Pacific, EMEA, and North America, the company is one of the fastest-growing colocation providers in a fast-growing sector.
Analysts have taken their earnings expectations higher for its current fiscal year, with the current $4.42 per share estimate up 4% over the last year. Similar to DLR, shares pay a solid dividend, currently yielding 3.0% annually.
Image Source: Zacks Investment Research
Bottom Line
The artificial intelligence craze has seen little cooling, with many stocks enjoying big-time runs year-to-date thanks to the positive sentiment surrounding the technology.
And when it comes to exposure, all three stocks above - Vertiv (VRT - Free Report) , Digital Realty Trust (DLR - Free Report) , and Iron Mountain (IRM - Free Report) – provide just that.
In addition, many have enjoyed positive earnings estimate revisions, further confirming the bullish outlook.
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3 Under the Radar Stocks for AI Exposure
Artificial intelligence (AI) is Wall Street’s new obsession, with companies discussing the technology in a snowballing fashion and helping to keep market sentiment positive.
Interestingly enough, there are several stocks investors can tap into for exposure, including Vertiv (VRT - Free Report) , Digital Realty Trust (DLR - Free Report) , and Iron Mountain (IRM - Free Report) .
For those interested in exposure to the technology, let’s take a closer look at each.
Vertiv
Vertiv provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services. Analysts have taken their earnings expectations higher across nearly all timeframes, landing the stock into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Shares have been remarkably strong year-to-date, with performance boosted by better-than-expected quarterly results. Vertiv has continued to capitalize on the AI frenzy, exiting its latest quarter with its highest backlog in company history totaling $6.3 billion.
The company provided rosy guidance for its current fiscal year, upping its net sales guidance into a band of $7.450 – $7.690 million, with the midpoint reflecting a +$30 million upgrade.
Digital Realty Trust
Digital Realty Trust is engaged in the ownership, acquisition, repositioning, and management of technology-related real estate. Specifically, the company offers data center, colocation, and interconnection solutions for domestic and international tenants through its portfolio of data centers.
The market has fully taken note of DLR’s favorable position, with shares up a staggering 48% over the last year compared to the S&P 500’s 25% gain.
Image Source: Zacks Investment Research
It’s worth noting that Digital Realty has an extensive list of notable customers, including Oracle, Nvidia, and IBM. Shares presently yield a solid 3.3% annually, well above the respective Zacks Finance sector average of 2.2%.
Iron Mountain
Iron Mountain is a global data center leader with colocation facilities in the U.S., Europe, and Asia. With facilities in Asia Pacific, EMEA, and North America, the company is one of the fastest-growing colocation providers in a fast-growing sector.
Analysts have taken their earnings expectations higher for its current fiscal year, with the current $4.42 per share estimate up 4% over the last year. Similar to DLR, shares pay a solid dividend, currently yielding 3.0% annually.
Image Source: Zacks Investment Research
Bottom Line
The artificial intelligence craze has seen little cooling, with many stocks enjoying big-time runs year-to-date thanks to the positive sentiment surrounding the technology.
And when it comes to exposure, all three stocks above - Vertiv (VRT - Free Report) , Digital Realty Trust (DLR - Free Report) , and Iron Mountain (IRM - Free Report) – provide just that.
In addition, many have enjoyed positive earnings estimate revisions, further confirming the bullish outlook.