Top 12 Trending AI Stocks on Latest News and Ratings

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

Number of Hedge Fund Holders: 52

Digital Realty Trust, Inc. (NYSE:DLR) brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. After gaining 30% in 2024, analysts at UBS upgraded the stock to a Buy on January 7th and raised the price target to $205 from $147.

The upgrade occurs against a backdrop of ongoing demand for enterprise, hyperscale, AI solutions, and anticipated power and space limitations. These elements support a favourable demand and pricing environment for Digital Realty Trust, Inc. (NYSE:DLR). With a record backlog of almost $900 million and over $1 billion in bookings over the past 12 months, the data center REIT provides insight into its future growth trajectory.

Digital Realty Trust, Inc. (NYSE:DLR) is staring at tremendous opportunities as high data center demand should result in a favorable pricing environment. Analysts expect Digital Realty to deliver mid-single-digit growth on its Core Funds From Operations (FFO) per share in 2025 and accelerate in the following years. The growth should bolster the balance sheet, its leverage having reduced to approximately 5x by the end of 2024.