Digital Realty stands as one of the premier beneficiaries of the AI and cloud computing infrastructure boom. As the largest pure-play data center REIT globally, the portfolio of over 300 facilities positions it to capture explosive demand for compute and storage capacity. The stock has gained nearly 11% over the past year and recently hit near its 52-week high, reflecting strong investor sentiment. At a P/E of 36.2 with $5.00 EPS, the valuation is stretched for a REIT but reasonable given secular growth tailwinds. Trading above its 50-day moving average of $160.49 confirms positive momentum. The bull case is compelling: unprecedented data center demand driven by AI workloads, limited new supply due to power constraints, and rising rental rates. The bear case involves high capital intensity, potential energy cost inflation, rising interest rates pressuring REIT valuations broadly, and the risk that hyperscalers increasingly build their own facilities. Digital Realty is a high-conviction play on the digital infrastructure megatrend.

Generated via Claude Code agent (Opus 4.6) - direct generation without API call.
Site: Digital Realty (ID: 2023)