10 Important AI News and Ratings for Today

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

Number of Hedge Fund Holders: 52

Digital Realty Trust, Inc. (NYSE:DLR) provides data center services ensuring secure and optimized worldwide network connectivity.

On January 27, Mizuho highlighted that DeepSeek’s new AI model raises questions for data center stakeholders about the need for large-scale hyperscaler spending and the timeline for monetizable use cases. The firm anticipates potential initial negative reactions for data center stocks, especially Digital Realty (NYSE:DLR), due to concerns about a shift in AI spending strategies. However, Mizuho suggests buying during any stock weakness and noted that many claims need further validation. The firm also pointed out that most REIT development projects are heavily pre-leased and expect strong double-digit pricing growth in fiscal 2025. Mizuho has an Outperform rating on Digital Realty.