The Motley Fool·2026-02-22 07:05Group 1: Nvidia's Market Performance - Nvidia's stock has increased by 750% over the past three years, reflecting strong market enthusiasm for AI opportunities [1] - The stock price surge is attributed to Nvidia's role as a leading manufacturer of high-power computer chips essential for AI [1] Group 2: Digital Realty Overview - Digital Realty is a real estate investment trust (REIT) that specializes in owning and leasing data centers [2] - The company’s business model involves leasing space in its properties to tenants, primarily housing computers and related technology [2] Group 3: Importance of Data Centers for AI - AI relies on algorithms that require significant computing power, which is typically housed in data centers [4] - Digital Realty is positioning itself to cater to the growing demand for AI technology by adopting relevant technologies for its data centers [4] Group 4: Investment Potential in Digital Realty - Digital Realty's stock has increased by approximately 55% over the past three years, indicating a more conservative investment compared to Nvidia [5] - The company has a market capitalization of $60 billion, with a gross margin of 25.35% and a dividend yield of 2.78% [7] Group 5: Future Growth Opportunities - As AI technology continues to evolve, Digital Realty stands to benefit from increased cash flow from new AI-related customers, supporting its dividend growth [7] - There is potential for Digital Realty to acquire data centers built by AI industry leaders when they decide to sell, providing further growth opportunities [8] Group 6: Comparative Performance - Digital Realty's stock has outperformed the average REIT, indicating some level of AI-related hype is already factored into its shares [9] - The risk-versus-reward profile of Digital Realty may appeal to conservative investors looking to gain exposure to the AI sector [9]