AI data centers were roundly rejected in last Tuesday's midterm elections. Wall Street has responded by dumping stocks associated with the AI data center boom. But we may be looking at the contrarian play of the century. Consider the Global X Data Center & Digital Infrastructure ETF (DTCR), suggests Sean Brodrick, editor at Weiss Ratings Daily.
Among the rubble are companies with strong revenue, cash flow, and earnings. Companies that stand to benefit from the biggest technology buildout in generations. In other words, you may be able to scoop up some of these stocks at bargain-basement prices.
Companies still need computing power. AI models still need training. Businesses are still integrating AI into everything from manufacturing to medicine. The companies providing that computing power will find ways to meet demand.
They'll adjust their plans, negotiate with communities, pay more in infrastructure costs, and move projects to more welcoming locations. I wouldn't be surprised to see Florida become a bigger player in the AI infrastructure boom.
As for DTCR, the fund holds a basket of stocks with exposure to AI infrastructure. They include major data center Real Estate Investment Trusts (REITs) such as Digital Realty Trust Inc. (DLR) and Equinix Inc. (EQIX), along with digital infrastructure businesses such as American Tower Corp. (AMT).
DTCR features an expense ratio of 0.5% annually. You can see DTCR rallied hard into June before correcting to digest those gains. Its next leg should be higher. If you’re a contrarian, DTCR is the way to go.
Recommended Action: Buy DTCR.
