Analyst: Ignore the Panic and Buy These 2 Data Center AI Stocks

The surge in artificial intelligence (AI) is driving immense demand for high-performance infrastructure. As hyperscalers and enterprises pour billions into AI, data center-focused real estate investment trusts (REITs) like Digital Realty Trust (DLR) and Equinix (EQIX) are essential. From faster processing to high-powered cooling, these data center REITs are key players in the AI arms race.

But last week, the market hit the panic button. Data center giants tumbled after Chinese AI firm DeepSeek unveiled a shocker - an open-source model that supposedly outperforms models from OpenAI and Meta Platforms (META), all at a fraction of the cost. Investors feared this could derail the AI spending spree, slamming DLR and EQIX.