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Digital Realty (DLR) Expands Global Footprint, Faces EPS Miss

Digital Realty Trust, Inc. (NYSE:DLR) is one of the best infrastructure stocks to buy right now. On February 6, 2026, TD Cowen raised its price target on Digital Realty (NYSE:DLR) to $185 from $179 while keeping a Hold rating. The firm cited strong Q4 results and the potential for better renewal spreads through 2026, which could lift Core‑FFO/share growth.

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On the same day, February 6, 2026, Citi lowered its price target on Digital Realty to $190 from $212 but maintained a Buy rating. Citi said Q4 results showed progress with bookings and funding, but adjusted the target to reflect lower valuation multiples.

Digital Realty reported its Q4 and full‑year 2025 results on February 5, 2026. EPS came in at $0.24, missing analyst estimates of $0.29 by about 17%, while revenue beat expectations at $1.63 billion versus the forecast of $1.58 billion.

The company booked $400 million in Q4, bringing full‑year bookings to $1.2 billion. Same‑capital cash NOI grew 4.5% year‑over‑year, and liquidity stood at $7 billion at year‑end. Digital Realty now operates over 300 data centers across 55+ metro areas, with 3 gigawatts of IT capacity in place and 769 megawatts under construction.

CEO Andy Power highlighted AI adoption as a major driver, noting power availability as a key constraint. In 2025, Digital Realty expanded into Indonesia and Malaysia, launched its Private AI Exchange (AIPx), and raised $3.2 billion in its first private capital fund. The company also reported over $15 billion of capital available for hyperscale development, with more than 5 gigawatts of future capacity planned.

Digital Realty Trust, Inc. (NYSE:DLR) is an Austin, Texas-based real estate investment trust that owns, operates, and invests in carrier-neutral data centers worldwide. The company provides colocation, interconnection, and cloud infrastructure services to more than 5,000 customers across industries.

While we acknowledge the potential of Digital Realty Trust, Inc. (NYSE:DLR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DLR and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best S&P 500 Stocks With Highest Upside Potential and 10 Best NYSE Stocks to Buy for the Long Term.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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