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TD Cowen Raises Digital Realty Trust (DLR) Target on Strong Q4 Performance

Digital Realty Trust, Inc. (NYSE:DLR) is included among the 14 Best Real Estate Stocks to Buy According to Hedge Funds.

On February 6, TD Cowen raised its price recommendation on Digital Realty Trust, Inc. (NYSE:DLR) to $185 from $179. The analyst kept a Hold rating on the shares. The firm pointed to stronger-than-expected fourth-quarter results and said there could be further upside ahead. In particular, it noted that higher renewal spreads in 2026 could help drive better Core FFO per share growth than the company’s current outlook suggests.

CEO Andy Power described 2025 as a turning point for both Digital Realty and the data center industry overall. He said the company closed the year with record results and beat its own guidance on revenue, EBITDA, and core FFO per share. Leasing activity was especially strong. Power noted that Digital Realty signed more than $1 billion in new leases for the second year in a row, with total bookings reaching $1.2 billion in 2025. That figure was nearly 70% higher than the company’s average annual bookings over the past five years, showing how quickly demand has accelerated.

He also highlighted strong momentum in interconnection and colocation, which have become key growth areas for the company. Power said bookings for its interconnection offerings reached nearly $340 million during the year, marking a new record and rising more than 35% compared with 2024. This growth reflects increasing demand from customers looking for reliable, scalable infrastructure to support cloud computing, AI, and data-heavy workloads.

Digital Realty Trust, Inc. (NYSE:DLR) is a data center REIT that owns, develops, and operates facilities that support digital infrastructure. Its data centers help businesses, cloud providers, and technology companies store data, run applications, and maintain global connectivity.

While we acknowledge the potential of DLR to grow, 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 this cheapest AI stock.

READ NEXT: 13 Best Roth IRA Stocks to Buy Now and 16 Best Dividend Stocks with Rising Payouts

Disclosure: None.

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

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

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

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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