The Best AI Pick-and-Shovel Stock to Buy

Digital Realty Trust, Inc. (NYSE:DLR) is a prominent player in the data center industry, operating globally to provide infrastructure for various sectors. Recently, the company has garnered attention from analysts and investors alike for its strategic moves and growth potential in the era of artificial intelligence (AI).

On April 8, 2026, Cantor Fitzgerald initiated coverage of Digital Realty Trust, Inc. with an Overweight rating and a price target of $211. The firm highlighted the attractiveness of AI infrastructure as an investment opportunity, citing the increasing demand for AI adoption across industries. Cantor Fitzgerald expects a sustained supply and demand imbalance over the next five years, which is likely to support pricing in the sector.

Truist also showed confidence in Digital Realty Trust, Inc. by assuming coverage with a Buy rating on March 30, 2026. The firm raised its price target to $207 from $202 and emphasized data centers as a preferred sub-sector within communications infrastructure and technology. Truist described data centers as crucial partners for AI, cloud, and digital transformation investments, singling out Digital Realty and Equinix as preferred names.

In a strategic move announced on March 23, 2026, Digital Realty Trust, Inc. revealed plans to enter the Milan market by acquiring two land parcels in Abbiategrasso. The planned campus will be strategically located along a subsea traffic corridor connecting Milan to Genoa and Savona, providing access to regional fiber routes.

While Digital Realty Trust, Inc. presents a compelling investment opportunity, some analysts believe that other AI stocks may offer greater upside potential with less downside risk. Investors looking for undervalued AI stocks that could benefit from current market trends may want to explore alternative options.

In conclusion, Digital Realty Trust, Inc. remains a key player in the data center industry with a focus on expanding its global footprint and catering to the growing demand for AI infrastructure. Investors should carefully consider their investment goals and risk tolerance when evaluating opportunities in this sector.

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