Digital Realty Trust (DLR) Soars 3.09% on Buy Rating, AI Demand

Digital Realty Trust (DLR) shares rose 0.44% today, marking the third consecutive day of gains, with a total increase of 3.09% over the past three days. The stock price reached its highest level since February 2025, despite an intraday decline.

The strategy of buying DLR shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.47% gain. This suggests a defensive approach, as the strategy largely avoided the downturns in 2022-2023, although it also missed out on some of the gains in 2024-2025. The consistency of returns, despite market volatility, indicates a strong foundation for this strategy.

Bank of America has reinstated its Buy rating for Digital Realty Trust, setting a price target of $210. This positive analyst coverage has likely contributed to the upward pressure on the stock price, enhancing investor confidence and driving the recent gains.

Digital Realty Trust's strong bookings pipeline and potential for durable AI spending are also significant factors influencing the stock's performance. The company's robust pipeline and the increasing demand for AI-related services suggest a promising outlook for future revenue growth and profitability, which can positively impact the stock price.

In the first quarter of 2025, Digital Realty Trust reported $1.41 billion in revenue, reflecting a year-over-year increase of 5.8%. This revenue growth is a strong indicator of the company's financial health and operational efficiency, further bolstering investor confidence and contributing to the positive stock performance.

The company's strategic expansions and the strong demand for data center capacity are additional factors driving investor interest. Digital Realty Trust's proactive approach to expanding its data center infrastructure positions it well for future growth and improved profitability, making it an attractive investment option for those seeking exposure to the data center sector.