10 AI Stocks to Watch Amid the DeepSeek Buzz

7. Digital Realty Trust, Inc. (NYSE:DLR)

Number of Hedge Fund Holders: 52

Digital Realty Trust, Inc. (NYSE:DLR) is a real estate investment trust engaged in the provision of data center, colocation, and interconnection solutions. On January 27, JMP Securities analyst Greg Miller initiated coverage of Digital Realty with an “Outperform” rating and a $220 price target. According to the firm, “We are in the midst of the largest digital infrastructure spend since the creation of the internet”. The firm expects well over $1.0 trillion in digital infrastructure spending over the next five years. This spending is anticipated to become the backbone of artificial intelligence, cloud, and edge compute, as well as other applications.

Despite this bullish outlook from JMP Securities, another firm Mizuho asserted that DeepSeek’s new artificial intelligence model is going to raise several questions for data center stakeholders. In particular, questions surrounding the need for massive spending by hyperscalers and how far are the use cases for AI monetization. The analyst told investors in a research note that there may be a “knee-jerk negative reaction” to data center stocks, particularly for Digital Realty. This is likely going to be in response to the given fears of a likely rethink of big AI spending.