5 Top AI Stocks for Data Center Exposure
Artificial intelligence (AI) is Wall Street’s new obsession, with companies discussing the technology in a snowballing fashion and helping to keep market sentiment positive.
Interestingly enough, there are several stocks investors can tap into for AI exposure, including Vertiv VRT, Digital Realty Trust DLR, Iron Mountain IRM, Modine Manufacturing MOD, and Comfort Systems USA FIX.
For those interested in exposure to the technology, more specifically the data center side of things, let’s take a closer look at each.
Vertiv
Vertiv provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services. Analysts have taken their earnings expectations higher across nearly all timeframes, landing the stock into a Zacks Rank #1 (Strong Buy).
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Comfort Systems USA
Comfort Systems USA provides comprehensive heating, ventilation, and air conditioning installation, maintenance, repair, and replacement services. The company provides chillers, cooling towers, and other critical components needed within data centers.
The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with the revisions trend for its current fiscal year particularly potent, up 40% to $11.42 per share over the last year.
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Digital Realty Trust
Digital Realty Trust is engaged in the ownership, acquisition, repositioning, and management of technology-related real estate. Specifically, the company offers data center, colocation, and interconnection solutions for domestic and international tenants through its portfolio of data centers.
The market has fully taken note of DLR’s favorable position, with shares up a staggering 48% over the last year compared to the S&P 500’s 25% gain.
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Income investors could be interested, with DLR shares currently yielding 3.4% annually.
Iron Mountain
Iron Mountain is a global data center leader with colocation facilities in the U.S., Europe, and Asia. With facilities in Asia Pacific, EMEA, and North America, the company is one of the fastest-growing colocation providers in a fast-growing sector.
Analysts have taken their earnings expectations higher across the board, landing the stock into a Zacks Rank #1 (Strong Buy).
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It is worth noting that shares pay a solid dividend, currently yielding 3.5% annually.
Modine Manufacturing
With over 45 years of experience, Modine provides complete cooling solutions encompassing precision air conditioning, IT cooling systems, chillers, condensers/dry coolers, and air handling units.
The company has enjoyed positive earnings estimate revisions across the board, currently sporting a Zacks Rank #2 (Buy).
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Bottom Line
The artificial intelligence craze has seen little cooling, with many stocks enjoying big-time runs year-to-date thanks to the positive sentiment surrounding the technology.
And when it comes to exposure, particularly on the data center side, all five stocks above - Vertiv VRT, Digital Realty Trust DLR, Iron Mountain IRM, Modine Manufacturing MOD, and Comfort Systems USA FIX – provide just that.
In addition, many have enjoyed positive earnings estimate revisions, further confirming the bullish outlook.
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Iron Mountain Incorporated (IRM) : Free Stock Analysis Report
Digital Realty Trust, Inc. (DLR) : Free Stock Analysis Report
Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report
Modine Manufacturing Company (MOD) : Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
