SoftBank Fuels AI Infrastructure Trade

SoftBank Eyes DigitalBridge: New Fuel For The AI Infrastructure TradeSoftBank circling DigitalBridge is a clear signal that the next leg of the AI trade is shifting toward “picks and shovels” infrastructure: data centers, towers, and fiber. DigitalBridge is a big player in that space, and the stock has exploded higher after reports that SoftBank is in talks to buy the company, with the deal potentially closing by year end. Investors are betting that AI infrastructure will attract trillions in spending over the next decade.WINNERS -Digital infrastructure and data center platformsWhy: A potential SoftBank buyout of DigitalBridge validates data centers and digital infrastructure as prime AI real estate and raises expectations for more M&A and higher valuations across the space. Names:DigitalBridge Group – $DBRGEquinix – $EQIXDigital Realty – $DLRAsset managers leaning into AI infrastructureWhy: If SoftBank wants to own a specialist platform like DigitalBridge, it supports the idea that owning digital infra managers is a powerful way to play the AI capex cycle, which is projected to reach trillions in the coming years. Names:BlackRock – $BLKKKR – $KKRAI data center hardware and networking suppliersWhy: More capital for data centers ultimately flows into GPUs, switches, and high speed networking, as operators race to add AI capacity.Names:NVIDIA – $NVDAArista Networks – $ANETLOSERS -Office heavy REITs as capital rotatesWhy: As digital infrastructure and data centers are seen as the growth real estate of the AI era, investors may continue to rotate away from structurally challenged office landlords.Names:Vornado Realty Trust – $VNOBoston Properties – $BXPLegacy telcos without a strong AI infrastructure storyWhy: Specialist platforms like DigitalBridge can attract premium valuations, while traditional carriers risk being treated like slow growth utilities if they do not clearly monetise their networks for AI workloads.Names:AT&T – $TVerizon – $VZCompeting private equity and infrastructure buyersWhy: Once a strategic buyer like SoftBank is willing to pay up for a digital infra platform, other financial buyers can be forced into richer deal multiples, which can compress returns on future acquisitions.Names:Blackstone – $BXApollo Global Management – $APO#StockMarket #Trading #Investing #DayTrading #SwingTrading #AIStocks #TechStocks #DataCenters #DigitalInfrastructure #MergersAndAcquisitions #USStocks #OptionsTrading

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