We recently compiled a list of the 15 AI News You Should Not Ignore. In this article, we are going to take a look at where Equinix, Inc. (NASDAQ:EQIX) stands against the other AI stocks.
Even as the United States pursues a tougher trade policy towards China, the latest indication being the tightening of export restrictions on advanced AI chips, companies from the Asian country continue to debut on the US stock market with elevated investor interest. For example, Pony AI, a China-based autonomous vehicle technology company, recently held an initial public offering that saw shares jump 15% in the market debut, pushing the valuation of the firm to more than $5.25 billion. News agency Reuters reports that the successful debut also suggested a positive investor approach to China-based firms.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The IPO price of the stock was $13 per share but the depositary shares opened at $15 in their Nasdaq debut, per the report. Even after the stellar debut, the new company faces several challenges, the report added, including public skepticism about autonomous vehicles, data privacy concerns, and competition from companies, including Tesla which has promised to roll out driverless ride-hailing services to the public in California and Texas next year. The company has said that its US operations will remain limited in scope for the foreseeable future.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of IT professionals working on a digital platform, indicating the company’s agile digital services.
Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 55
Equinix, Inc. (NASDAQ:EQIX) is a California-based real estate trust that operates data centers and other technology assets. As AI data center companies come under increased pressure to use sustainable energy sources for their data center power needs, Equinix recently announced that it had issued an additional €1.15B in green bonds, which builds on more than $750 billion offerings in green bonds that Equinix completed in September this year. With these latest issuances, Equinix will have issued a total of $6.9 billion of green bonds, making it a top 5 issuer of green bonds in the US. The firm said it will utilize the green bonds to further its sustainability initiatives and enhance the operational efficiency of its global business.
Overall EQIX ranks 11th on our list of the AI stocks that you should not ignore. While we acknowledge the potential of EQIX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than EQIX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
