Analyst Says DigitalBridge Group Inc (DBRG) Among the Best Small-Cap AI Stocks to Buy

Core Viewpoint - DigitalBridge Group, Inc. (NYSE:DBRG) is highlighted as a top stock recommendation amid concerns over the growing AI bubble, with a focus on its exposure to AI and infrastructure investments [1]. Group 1: Investment Potential - DigitalBridge is currently raising its third flagship digital infrastructure fund, which, if successful, could make its stock price appear undervalued at current levels [3]. - The company has significant embedded gains from its technology investments and has been actively raising capital from both institutional and individual investors [2]. - There is speculation that DigitalBridge may become an attractive acquisition target for other asset managers due to its expertise in identifying technology investment opportunities [2]. Group 2: Strategic Acquisitions - DigitalBridge's acquisition of Switch, a leading operator of AI data centers, at an approximate valuation of $11 billion, is seen as a strategic move, with potential for Switch to go public at a valuation of $40 billion [3]. - The anticipated IPO of Switch could enhance DigitalBridge's fundraising efforts and overall investment appeal [3]. Group 3: Market Position - DigitalBridge is recognized as one of the best small-cap AI stocks to buy, although some analysts believe other AI stocks may offer higher returns with limited downside risk [3].