Forget Tech Stocks: This Real Estate Play Is Cashing In on AI
The Motley Fool
by newsfeedback@fool.com (Reuben Gregg Brewer)February 22, 2026
AI-Generated Deep Dive Summary
Forget Tech Stocks: This Real Estate Play Is Cashing In on AI
The artificial intelligence (AI) revolution has sent tech stocks soaring, with Nvidia leading the charge—its stock has surged by an impressive 750% over the past three years. While Wall Street excitement for AI remains strong, history suggests that such enthusiasm may not last forever. For investors seeking a more stable long-term play, Digital Realty (DLR), a real estate investment trust (REIT) specializing in data centers, could be a smarter choice. Unlike tech stocks, DLR’s performance has been more modest—up around 55% over the same period—but its role in the AI ecosystem makes it a key player to watch.
Digital Realty owns and leases space in data centers, which are the backbone of modern computing and AI operations. While the company operates similarly to other REITs, its focus on high-tech infrastructure sets it apart. Data centers house the massive computer systems that power AI applications, making them critical to the tech industry’s growth. As companies increasingly rely on AI, demand for data center space remains strong, positioning DLR as a key beneficiary of the AI boom without the volatility often associated with tech stocks.
For finance-savvy readers, this real estate play offers a unique balance of stability and growth. While Nvidia and other tech stocks may offer higher returns in the short term, they come with greater risk due to market fluctuations. DLR, on the other hand, provides steady cash flow through long-term leases, making it a safer bet for investors looking to diversify their portfolios. As AI continues to transform industries, data centers will remain essential, ensuring that Digital Realty stays relevant—and profitable—for years to come. This blend of necessity and growth makes DLR a compelling option for those seeking both stability and exposure to the AI revolution.
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Originally published on The Motley Fool on 2/22/2026