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☆ These 5 stocks will power the AI revolution as data centers spread and electricity demand doubles, says Bank of America
▼ + stars: | 2024-04-20 | by ( Pia Singh | ) www.cnbc.com time to read: +4 min

The rise in power demand for data centers — which are booming from the need to support a new world of AI technologies — is also fueling demand for the providers of data center parts. "Expected power usage for U.S. data centers under construction is equivalent to more than 50% of the power currently used by U.S. data centers. Several years out, even after these data centers are constructed, some expect data center power consumption to double again," analyst Thomas Thornton wrote in a Wednesday note. Management is raising its own capital expenditures for the first time in a decade to meet the power demand for data centers, BofA added. To be sure, analysts mentioned that data center demand will likely exceed supply.

Persons: Thomas Thornton, Thornton, BofA, David Barden, Barden, Equinix, Eaton Organizations: Bank of America, Caterpillar, Management, Realty Trust, Digital Realty, Software, Aspen Tech, Constellation Energy, Dominion Energy

☆ Blackstone's data-center bets have climbed 10-fold to $100 billion in just 3 years. And it's just the start, Steve Schwarzman says.
▼ + stars: | 2024-04-18 | by ( Daniel Geiger | ) www.businessinsider.com time to read: +4 min

Schwarzman said QTS was now "the largest data center company in North America" and that data centers were one of Blackstone's "highest conviction investment themes today." Jon Gray, Blackstone's president, suggested Blackstone's data center portfolio would continue to grow. The size of Blackstone's investments in data centers reflect an astonishing rise for a once-obscure industry that's gaining importance in the race to develop and commercialize artificial intelligence. Around the country, there has been a boom of data center construction. Late last year, QTS won local approval to build one of the country's largest new data center projects in Virginia.

Persons: Steve Schwarzman, Schwarzman, Blackstone's, Blackstone, QTS, Jon Gray, Gray, Michael Chae, We've Organizations: Business, Blackstone, Google, Income Trust, Digital Realty Trust Locations: North America, QTS, Virginia, Frankfurt, Paris

☆ Here are Tuesday's biggest analyst calls: Nvidia, Apple, Tesla, Netflix, Cisco, Alphabet, American Eagle & more
▼ + stars: | 2024-04-09 | by ( Michael Bloom | ) www.cnbc.com time to read: +9 min

Barclays downgrades American Express to equal weight from overweight Barclays sees "limited upside" on valuation for the stock. Compass Point downgrades Wells Fargo to neutral from buy Compass sees a more balanced risk/reward for shares of Wells Fargo. Bank of America reiterates Apple as buy Bank of America says its survey checks show App Store growth increasing. Bank of America upgrades Ally Financial to buy from neutral Bank of America said the bank holding company has "credit leverage." Bank of America initiates Frontier a buy Bank of America said the wirelines and cable telecom company has "meaningful potential to outperform."

Persons: Morgan Stanley, Raymond James, Goldman Sachs, Tesla, Goldman, Wells, Wells Fargo, Jefferies, MNDY, Rosenblatt, TeraWulf, TD Cowen, William Blair, Cowen, it's, Wolfe, KBW, DA Davidson, Davidson Organizations: Cisco, Colgate Energy, Resource, Bank of America, Infosys, of America, Barclays downgrades, Express, Barclays, BMO, Realty Trust, Compass, LPL, Nasdaq, Jefferies, RBC, Molson Coors, TAP, Distributors, Google, GE Aerospace, GE, General Electric Company, Apple, Netflix, Frontier Communications, JPMorgan, Eagle Outfitters, Technologies, Steel, Japan's Nippon Steel, Nippon Steel, GOP, Trump, Nvidia Locations: Midland , Texas, Wells Fargo, Freeport, Pittsburgh

☆ This options trade wins if inflation remains sticky, causing the Fed to further delay rate cuts
▼ + stars: | 2024-03-12 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Tuesday's CPI report shows slightly higher-than-expected inflation, suggesting that the Federal Reserve is likely to delay potential rate cuts. This could pressure interest rate-sensitive sectors like real estate and set up a potential profitable options trade. The trade The trade structure I am using here is called a "bear put spread". You may find trading platforms using other names like "put debit spread" or "long put spread" too. NOTE: With DLR trading around $146, I am looking to buy an ATM (at-the-money) put spread.

Persons: I've, Fibonacci, Nishant Pant Organizations: CPI, Federal Reserve, Digital Realty Trust, Realty Trust

☆ Electricity demand from data centers, AI and crypto could double in 2 years. How to play it
▼ + stars: | 2024-02-06 | by ( Pia Singh | ) www.cnbc.com time to read: +5 min

The firm pointed to recent data from the International Energy Agency, which forecasted that electricity consumption from data centers, artificial intelligence and the cryptocurrency sector could double by 2026. "The latest IEA electricity forecasts paint an even more alarming outlook for data center consumption," analyst Hiral Patel wrote in a Monday note. Barclays said it is looking at three investment areas that are a key part of the trend: data center operators, data center suppliers and data center grid infrastructure builders. After successfully using lithium-ion batteries at a Dublin data center , Microsoft wants to expand grid-interactive battery storage in other areas. That includes nine data centers in Ireland, which is a data center hotspot in Europe that's also under increased risk given its soaring electricity consumption, Barclays said.

Persons: Hiral Patel, Morgan Stanley's, Europe that's, Stifel Nicolaus, Eaton Organizations: Barclays, International Energy Agency, CNBC, Microsoft, Electricity, Constellation, Digital Realty Trust, Digital, European Union, Blackstone, Digital Realty, Devices, AMD, Tech Locations: Japan, U.S, Dublin, Ireland, Europe, European, Frankfurt, Paris, Virginia

☆ Jim Chanos says this is a golden age of fraud with plentiful short opportunities as he converts fund
▼ + stars: | 2023-11-20 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Legendary short seller Jim Chanos, who has decided to convert his hedge funds to a family office after nearly four decades, said he remains a firm believer in short-selling in this era of rampant corporate wrongdoings. In his final message to investors, the short seller best known for his bet against Enron before its bankruptcy in 2001, said there are still more than enough short opportunities for investors. Chanos has also bet against Tesla and Coinbase in recent years, but these positions turned out to be volatile and tough at times. The founder of Chanos & Co. said Coinbase runs an unsustainable model as it makes money from increased commission rates for retail investors. "It is no secret that the long/short equity business model has come under pressure and interest in fundamental stock pickers has waned," Chanos wrote in the letter.

Persons: Jim Chanos, Chanos, –, Tesla, Coinbase, — CNBC's Scott Wapner Organizations: Enron, Digital Realty Trust, Big Tech, Chanos, Wall Street Locations: China

☆ Buy these 12 high-quality stocks that are up to 42% below their fair market value as Fed rate hikes begin to hit the economy hard, according to Morningstar's chief strategist and economist
▼ + stars: | 2023-11-01 | by ( Laila Maidan | ) www.businessinsider.com time to read: +5 min

The firm estimates fair value based on its projection of a company's future cash flows and the predictability of those flows. The best opportunities are now in value stocks that are trading at about a 22% discount to fair value, Sekara noted. Currently, the real estate sector is the most undervalued sector, with REITs trading at a 26% discount to fair value, Sekara said. Finally, American Tower (AMT), which owns and operates wireless and broadcast communications infrastructure, trades at a 24% discount to fair value. Two other five-star stocks that remain significantly undervalued are AT&T and Verizon, trading at a 35% discount to fair value.

Persons: Morningstar's Preston Caldwell, Caldwell, Dave Sekara, Sekara, Wells Organizations: Treasury, Morningstar, Simon Property Group, Realty Trust, Communications, Verizon, Citigroup, PNC, US Bank

☆ Defensive stocks for worried investors to buy if upcoming threats rattle the market
▼ + stars: | 2023-09-19 | by ( Pia Singh | ) www.cnbc.com time to read: +2 min

With the market on edge ahead of the Federal Reserve's decision on interest rates, here's a way to play it safe. In anticipation of the Fed's decision, stocks are losing their momentum this week while oil prices surge and consumer sentiment sours. These stocks have a dividend yield of greater than 3% and are still in the green this year, making them a strong hedge against potential near-term volatility. Oil and natural gas producer Coterra Energy has the highest dividend yield of the list and has popped 12% so far this year. The company also offers a dividend yield of 3.83%.

Organizations: Federal, CNBC Pro, Coterra Energy, Digital Realty Trust, Essex Property Trust, Business Machines, Hasbro Locations: Central, Essex, U.S

☆ These are the most expensive stocks today and analysts hate them
▼ + stars: | 2023-09-13 | by ( Pia Singh | ) www.cnbc.com time to read: +3 min

For investors worried over how expensive the entire stock market has gotten, some stocks are more concerning than others. Among those expensive stocks, we filtered for names that are also hated by analysts because of their valuations. Take a look at the list of Wall Street's 10 most expensive stocks and what analysts have to say about them. Seagate Technology Holdings also made the list of stocks trading more expensive to their historic levels. Only 30% of analysts covering Seagate rate it a buy, and analysts believe the stock run has just about topped out, according to FactSet data.

Organizations: CNBC, Intel, Dow Jones, Investment, Seagate Technology Holdings, Seagate, Barclays, Company, Digital Realty Trust, Business Machines

☆ There's a little-known way to invest in the AI revolution: real estate. Bank of America breaks down the opportunity to profit from the under-the-radar stocks powering it.
▼ + stars: | 2023-09-09 | by ( Mark Reeth | ) www.businessinsider.com time to read: +5 min

Data centers are perfectly positioned to take advantage of this trend, according to BofA. David Barden breaks down the opportunity for data center REITs, and which companies will profit. 2 data center giants ready for liftoffWith data centers poised to profit from the AI explosion, the only question remaining is which data center providers make the best investments now. "DLR's business model should, however, position it to develop facilities with the power density required to host large AI model Training," Barden wrote. While Equinix can capitalize on AI sooner rather than later, Digital Realty Trust's larger capacity makes it perfect for "larger, longer-dated AI training model environments," Barden wrote.

Persons: David Barden, Haim Israel, Barden, EQIX Organizations: Semiconductors, Software, Bank of America, Realty Trust, Digital Realty Trust, Digital Realty

☆ AI could be biggest growth opportunity for data center stocks since the cloud, says Bank of America. Two picks to play it
▼ + stars: | 2023-09-07 | by ( Brian Evans | ) www.cnbc.com time to read: +2 min

The rise of artificial intelligence could revolutionize data center stocks, according to Bank of America. Analyst David Barden wrote in a Thursday note that "AI could evolve to be the largest data center growth opportunity since the cloud," and added that growing demand for computing will underpin the expansion. Barden expects that interest will soon spill over to data center firms. To play the growth of AI in the data center segment, Barden pointed toward Digital Realty Trust and Equinix . Shares of Digital Realty and Equinix have soared roughly 50% and 13% since Nvidia's May 24 earnings report.

Persons: David Barden, Barden, " Barden, Equinix, — CNBC's Michael Bloom Organizations: Bank of America, Digital Realty Trust, Digital Realty, Nvidia's, Digital

☆ CVS Health is among the most oversold stocks in the S&P 500. Here are the others
▼ + stars: | 2023-09-02 | by ( Pia Singh | ) www.cnbc.com time to read: +3 min

After losing nearly 30% this year, shares of CVS Health could see a comeback according to one popular metric. Conversely, a reading lower than 30 typically means that a stock is oversold and could be a signal of a possible buying opportunity. CVS Health is another one of the most oversold companies in the S & P 500. Competitor pharmacy chain Walgreens Boots Alliance was also on the oversold list, with just 5.9% of analysts rating the stock a buy. Chipmaker and artificial-intelligence leader Nvidia , Mastercard , and Cisco Systems are also among the most overbought companies in the S & P 500.

Persons: Mills Organizations: CVS, Dow Jones Industrial, Nasdaq, CNBC Pro, Alaska Air Group, CVS Health, Wall Street, Walgreens Boots Alliance, Citi, Digital Realty Trust, Telecommunications, Verizon, Wall, Companies, Jefferies, Nvidia, Mastercard, Cisco Systems

☆ The technical trade: T, BMY & DLR
▼ + stars: | 2023-08-29 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe technical trade: T, BMY & DLRKatie Stockton, Fairlead Strategies founder, joins 'Power Lunch' to discuss the technical support for AT&T, Bristol-Myers Squibb and Digital Realty Trust.

Persons: Katie Stockton Organizations: Myers Squibb, Digital Realty Trust Locations: Bristol

☆ A.I. has created a long runway for data infrastructure growth, says Digital Realty's Andy Power
▼ + stars: | 2023-07-31 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailA.I. has created a long runway for data infrastructure growth, says Digital Realty's Andy PowerAndy Power, CEO of Digital Realty Trust, joins 'The Exchange' to discuss building physical data infrastructures for cloud players, tailwinds from AI growth, and establishing the first data center REIT.

Persons: Andy Power Andy Power Organizations: Digital Realty Trust

☆ Here's an unusual derivative play off the A.I. boom
▼ + stars: | 2023-06-22 | by ( Samantha Subin | ) www.cnbc.com time to read: +1 min

One liquid cooling stock could be an unexpected beneficiary of the artificial intelligence boom as datacenters power stronger workloads, according to RBC Capital Markets. Liquid cooling demand could add one percentage point of annual growth for the company over the next five years, according to RBC. "Rising electricity prices, cost-effectiveness, space optimization through higher densities, AI growth, and ESG considerations are among the key market drivers," Dray said. "As the digital landscape continues to evolve, liquid cooling is poised to play a pivotal role in meeting the escalating cooling demand of modern datacenters." He also highlighted Dover , Eaton and Wesco as names with exposure to liquid cooling.

Persons: Deane Dray, Dray, CNBC's Michael Bloom Organizations: RBC Capital Markets, RBC, datacenters, Digital Realty Trust Locations: Pentair, Dover, Eaton

☆ Oracle says it's seeing 'exploding AI demand' and Deutsche Bank touts one stock as a big beneficiary
▼ + stars: | 2023-06-14 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

A surge in demand for artificial intelligence at Oracle should have a positive effect on Digital Realty Trust , Deutsche Bank said. Analyst Matt Niknam pointed to commentary from Oracle CEO Safra Catz around "exploding AI demand" and "unprecedented" demand for the company's cloud services. Niknam has a $112 price target on Digital Realty, which implies shares could rally about 8% from Tuesday's close. As a real estate investment trust, Digital Realty also pays a dividend yield of about 4.6%. Demand is picking up for AI offerings from Digital Realty despite the company not doing much related leasing activity to date, Niknam said.

Persons: Matt Niknam, Safra, Niknam, — CNBC's Michael Bloom Organizations: Oracle, Digital Realty Trust, Deutsche Bank, Safra Catz, Digital Realty Locations: Tuesday's

The S & P 500 is up 1.8% week to date, on pace for a third consecutive week in the green. Cruise companies Royal Caribbean and Norwegian Cruise Line also had a strong week, gaining 7.8% and 9.3%, respectively. The consensus price target for shares implies just 7.2% additional upside, per FactSet data. Another cruise line on the list is Carnival , which saw shares rise 6.7% week to date. Dish could soar an additional 124.1% based off the average price target on shares.

Organizations: Dow Jones Industrial, Nasdaq, Match, Cruise, Royal, Royal Caribbean, Dish, Bloomberg News, Enphase Energy, Intel, Netflix, Digital Realty Trust Locations: Royal Caribbean

☆ This under-the-radar real estate stock could be a winner of the A.I. boom
▼ + stars: | 2023-05-31 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

The boom in artificial intelligence should create a big winner in one of the economic areas investors are most worried about, according to Jefferies. Analyst Jonathan Petersen said in a Tuesday note to clients that Digital Realty Trust, a real estate company focused on housing data centers, will gain pricing power because of the extra demand for computing power created by AI. Digital Realty is part of the broader commercial real estate sector, which many investors are trying to avoid with higher rates and signs the economy is slowing. "DLR's stock is up +14% since NVDA 's earnings release, but the stock only trades at a 15.6x [adjusted funds from operations] multiple. Jefferies has a buy rating and a price target of $129 per share for Digital Realty, or about 28% above where the stock closed Tuesday.

Persons: Jonathan Petersen, Jefferies, — CNBC's Michael Bloom Organizations: Jefferies, Digital Realty Trust, Digital Realty Locations: Petersen

☆ A leading fund manager warns that regional banks could cause 'financial Armageddon' — unless the government makes 2 crucial moves immediately
▼ + stars: | 2023-03-19 | by ( James Faris | ) www.businessinsider.com time to read: +8 min

Financial stress stemming from Silicon Valley Bank's collapse could spread, a top fund manager said. But that in itself is becoming an under-the-radar issue, he noted, as large banks' strength is now coming at the expense of regional banks — even those without issues. Since most regional banks aren't classified as "systemically important," their clients would be out of luck in the event of a bank failure, Hatfield noted. Unless the FDIC insures all deposits at all banks, Hatfield said that there will be no reason to put money in a non-protected regional bank. So they'll have a negative interest margin, they'll lose money, they'll get downgraded, and they'll go out of business."

☆ Morning Bid: Growth trumps rates
▼ + stars: | 2023-02-16 | by ( ) www.reuters.com time to read: +6 min

While there were some questions about seasonal adjustments in the data, economists were impressed that sales growth was pretty broad based and have scrambled to re-crunch first quarter U.S. output forecasts as a result. There may be a more mixed picture from Thursday's data slate on producer prices, housing starts and weekly jobless claims. Even though rates futures and Treasury yields ticked back a bit today, pricing now has Fed policy rates moving as high as 5.25% and staying above 5% all year. And while full-year earnings growth estimates for S&P500 companies have sunk to zero, consensus forecasts are now pencilling in a rebound of almost 12% next year. Uncertainty about the pace of growth and annual tax receipts in April makes it difficult for government officials to predict the exact "X-date", it said.

With a majority of S & P 500 companies having posted their quarterly results, investors' focus will turn toward inflation and the consumer price index reading in the upcoming week. The three major indexes are on pace to end the week down, with the S & P 500 poised to post its worst performance since December. Sharp declines for Alphabet , which is off by more than 9% this week, dragged the tech-heavy index. January's consumer price index With the latest Powell speech in the books, investors are now looking ahead to the consumer price index for insight into the pace of inflation. "Retail sales and CPI is really driven by the consumer, and a lot of eyes are on how the consumer doing," Bruno said.

☆ 2023 looks good for the market — especially for one 'extremely attractive' asset class: Fund manager
▼ + stars: | 2023-01-03 | by ( Weizhen Tan | ) www.cnbc.com time to read: +3 min

The S & P 500 is currently at around 3,839. Based on the current yield of 3.75%, the S & P 500 is "fairly valued" at 3,800 — implying no upside. 'Conviction themes' in 2023 Hatfield highlighted the "conviction investment themes" he expects to be very attractive in 2023. One asset class he highlighted was preferred stocks, which have the characteristics of both stocks and bonds . "We believe that preferred stocks are extremely attractive now as most are trading at more than a 20% discount to par.

☆ Data Centers Face Higher Costs, Weaker Demand for Debt That Fueled Sector’s Rise
▼ + stars: | 2022-10-20 | by ( Kristin Broughton | ) www.wsj.com time to read: +7 min

The decline in issuance of data-center debt comes as chief financial officers across industries evaluate their funding options amid the Fed’s rate-hike campaign. Within the data-center sector in particular, that calculus for some companies involves assessing whether the timing is right to tap the securitization market despite the higher costs. What’s more, while the data-center sector is much bigger now than it was during the 2007-09 recession, it hasn’t been tested. The securitization market has historically provided Vantage with more money than it has needed to pay down its loans, Mr. Metwalli said. Digital Realty Trust Inc., a publicly traded company in the sector with an investment-grade rating, has avoided the securitization market.

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