J P M O R G A N North America Equity Research 12 December 2025 Communications Infrastructure 2026 Outlook: Crucial Year for Hyperscale AI Capacity Delivery as AI Infrastructure Needs Evolve; Towers Poised for Growth, but EchoStar Uncertainty Remains The data center industry went into overdrive in 2025, with incremental capacity builds doubling from last year, and we look for even more supply to be brought online in 2026. This year, AI-focused companies have announced a wave of deals totaling tens of billion ...

Core Viewpoint - Equinix (EQIX) is positioned as a superior investment compared to Digital Realty (DLR) due to its better track record, operations, and valuation [5]. Company Comparison - EQIX and DLR are both large-cap companies with market capitalizations of $71 billion and $55 billion, respectively, and operate globally with similar property maps [2]. - EQIX has demonstrated significantly higher growth in AFFO/share, tripling since Q1 2013, while DLR has only seen a 191% increase [6][7]. Operational Strategy - EQIX focuses on building ecosystems within its data centers, enhancing value through direct connections between tenants, which creates a network effect [11][13]. - DLR has primarily built commodity data centers, which, while profitable, do not offer the same competitive advantages as EQIX's ecosystem approach [12][10]. Financial Performance - EQIX's AFFO/share growth has consistently outpaced DLR, with EQIX achieving a 335% increase compared to DLR's 191% since Q1 2013 [6][7]. - During the period from 2018 to 2022, EQIX maintained positive same-store NOI growth, while DLR experienced negative growth [15][17]. Valuation Insights - EQIX's stock price has decreased by approximately 25%, leading to a drop in its AFFO multiple from the 30s to 18.42X, making it an attractive investment opportunity [21][25]. - In contrast, DLR's valuation has not decreased as significantly, trading at 22X forward AFFO [27]. Future Outlook - EQIX's recent earnings report indicated strong growth, with AFFO of $965 million, an 11% increase year-over-year, and a positive outlook for future growth driven by record bookings and a large development pipeline [33][35]. - The company has a robust pipeline with $1.5 billion in preconstruction and $2.9 billion in construction, indicating a strong growth trajectory [38][40]. Conclusion - Both EQIX and DLR are well-positioned to benefit from the growing demand for data centers, particularly in the context of AI development, but EQIX is expected to outperform due to its superior operational strategy and more attractive valuation [45].

Core Viewpoint - Citigroup maintains a "Buy" rating for Equinix, emphasizing its strong commitment to sustainability and market position as a leading digital infrastructure company [1][5] Company Recognition - Equinix is recognized in the IDC MarketScape report for its strengths in water management innovation, AI sustainability, and customer decarbonization tools [2][5] - The company's comprehensive sustainability strategy includes renewable energy sourcing, water stewardship, circularity, heat export, and green financing [2] Stock Performance - Equinix's stock price recently decreased by $5.92, approximately 0.80%, with a trading range between $732.65 and $747.46 during the day [3] - Over the past year, the stock has experienced a high of $986.50 and a low of $701.41, indicating market volatility [3] Market Capitalization and Investor Interest - Equinix's market capitalization is approximately $71.67 billion, reflecting its significant presence in the industry [4] - The company has a trading volume of 285,916 shares, indicating continued investor interest [4]

Core Viewpoint - Iren's recent $9.7 billion contract with Microsoft marks a significant shift towards AI data centers, but the company's heavy reliance on Bitcoin mining poses serious risks to its existing business model [3][5][10]. Company Overview - Iren has experienced explosive revenue growth of 750% over the past three years, resulting in a stock price increase of 3,360% [2]. - The company primarily operates data centers, selling computing capacity, and has shifted focus from Bitcoin mining to AI data centers [2][3]. Financial Highlights - The new contract with Microsoft is expected to expand Iren's hardware backbone to 140,000 GPUs, potentially increasing the annualized revenue run rate to $3.4 billion, compared to $685 million in total revenue over the past four quarters [3]. - Iren's market capitalization stands at $13 billion, with a current stock price of $44.46 [4]. Business Risks - Bitcoin mining accounted for 97% of Iren's revenue in the most recent quarter, making the company vulnerable to the volatility of cryptocurrency prices [7]. - Historical data shows that Bitcoin's price has declined by over 60% multiple times, and it has fallen nearly 30% from its all-time high since early October [8]. - A prolonged downturn in Bitcoin prices could significantly impact Iren's cash flow and hinder its AI expansion plans [10]. Competitive Landscape - Equinix, a leading data center REIT, is highlighted as a more stable investment alternative, benefiting from AI demand without the need for costly GPU investments [11][12]. - Equinix operates 273 data centers globally and plans to double its capacity by 2029, with annualized gross bookings increasing by 25% year over year [12].

Scott Kaufman, aka Treading Softly, learned about investing firsthand from over a decade of financial sector experience. He is the lead analyst for Dividend Kings providing actionable insight into high quality dividend growing and undervalued opportunities. His focus is to see a bountiful harvest of cash dividends and strong capital gains, providing a robust total return.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate ...

REDWOOD CITY, Calif., Dec. 9, 2025 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company, today announced that it has been positioned in the Leaders category in the first IDC MarketScape: Worldwide Datacenter Services Sustainability 2025-2026 Vendor Assessment (doc #US53000525, December 2025). According to the report, "Equinix is distinguished by its strong commitment to sustainability and environmental stewardship." Equinix recognized for strengths, including water manage ...

USA | Digital Infrastructure Equity Research AI Inference and Enterprise Adoption: Why Tier 1 Data Center Markets Matter We believe the AI infrastructure build-out is approaching an inflection point, with AI demand expanding beyond massive super-compute facilities into Tier 1 markets. We expect massive-scale "AI training" clusters will continue to rise in remote, power-rich locations, but inference and enterprise AI deployments will gravitate toward network-dense metro colocation sites for better connectivi ...

Core Viewpoint - Investors in Equinix, Inc. (EQIX) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Dec 19, 2025 $400.00 Call option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for future price movements, with high levels suggesting potential significant price changes or upcoming events that could lead to a rally or sell-off [2] - The current high implied volatility for Equinix options may signal a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] Group 2: Analyst Sentiment - Equinix holds a Zacks Rank of 3 (Hold) within the REIT and Equity Trust - Retail industry, which is positioned in the top 31% of the Zacks Industry Rank [3] - Over the past 60 days, there has been a mixed sentiment among analysts, with one increasing earnings estimates for the current quarter while five have decreased theirs, resulting in a consensus estimate drop from $9.37 to $9.11 per share [3]

This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Equinix CFO Keith Taylor will retire from his role in 2026 after a 27-year span at the digital infrastructure company, including 20 years as its finance chief, the business announced in a Wednesday press release and securities filing. The average tenure for finance chiefs is approximately 4.7 years, Crist | Kolder Associates’ most recent Volatility Report foun ...

Core Insights - Equinix, Inc. announced the planned retirement of Chief Financial Officer Keith Taylor in 2026 after 27 years with the company, with a transition period where he will serve as a Special Advisor [1] - Taylor has been pivotal in Equinix's growth from a startup to a Fortune 500 leader, overseeing financial strategies that have led to over $9 billion in annualized revenue [1] - The company is actively searching for Taylor's successor, considering both internal and external candidates, with the process expected to conclude in the coming months [1] Company Overview - Equinix is recognized as a global leader in digital infrastructure, providing data center services and interconnected ecosystems that facilitate innovations across various sectors [1] - The company emphasizes its commitment to sustainability, having developed a Green Finance Framework to support the communities it operates in [1] - Equinix connects economies and organizations, enhancing digital experiences and promoting advancements in AI technology [1]