Worried About AI Stock Valuations? This REIT Trades at a Fraction of the Price.

• There are different ways to put successful the artificial quality (AI) gyration too chipmakers and bundle companies.

• Equinix provides the infrastructure that allows the hardware down AI to run reliably.

• The banal trades for a precise tenable valuation comparative to its opportunity.

• 10 stocks we similar amended than Equinix ›

There's nary denying it -- artificial quality (AI) is the astir transformative technological gyration successful caller times. And it's apt that investing successful AI volition beryllium a large creator of wealthiness for galore people.

However, determination are different ways to put successful AI too the chipmakers, bundle developers, and generative AI companies. One that galore investors place is information centers, which supply the infrastructure that makes AI possible. Equinix (NASDAQ: EQIX) is the largest information halfway proprietor successful the market, and its banal is worthy a person look close present -- particularly considering immoderate of the precocious valuations successful different types of AI stocks.

Equinix is simply a existent property concern trust, oregon REIT, a specialized benignant of institution designed to clasp commercialized existent property assets -- successful this case, information centers.

If you aren't familiar, deliberation of information centers arsenic the carnal "homes" of the internet, and for generative AI successful particular. When you inquire ChatGPT oregon different generative AI exertion a question, the hardware that processes the effect needs to physically unrecorded somewhere. That's wherever information centers travel in. They supply a secure, reliable situation for servers, networking equipment, and different indispensable components of unreality computing.

Equinix has 273 information centers successful its portfolio, with abstraction leased by implicit 10,000 customers, including Nvidia, Adobe, and galore others. More than 60% of Fortune 500 companies are Equinix customers to immoderate extent.

The abbreviated mentation is that information halfway request has soared successful caller years, and astir experts judge the AI concern roar volition support request increasing for years to come. In fact, planetary AI information halfway spending was $236 cardinal past year, and respective estimates telephone for the yearly spending to transcend $1 trillion by 2030 -- much than four times the existent level.

In the astir caller quarter, Equinix's results amusement the request growth. Bookings (which bespeak aboriginal revenue) grew 25% to an all-time high. With an fantabulous equilibrium sheet, astir 60 large information halfway projects already underway, and astir $7 cardinal successful liquidity, Equinix is good positioned to capitalize connected opportunities arsenic they arise.