© Reuters Investing in Digital Realty Trust (DLR) one of the best ways to capitalize on Nvidia trend – Jefferies
Jefferies analysts believe investing in Digital Realty Trust (NYSE:) is one of the best ways to capitalize on NVIDIA (NASDAQ:) market share gains.
The analysts, who have a Buy rating and $129 price target on DLR, told investors in a note Tuesday that they should invest where NVDA GPUs go after they are sold.
“NVDA’s earnings took the market by storm, and Jefferies…expects NVDA’s market share in data centers will continue to climb until it hits 80% (from ~50% today),” wrote the analysts.
“We view investing in DLR as one of the best ways to capitalize on this trend, given that high-performance AI computing takes place in data centers.”
The analysts said they believe demand acceleration and limited available DC space give DLR an “unprecedented ability to push higher rents.” In addition, they feel the stock trades at a discount.
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