The REIT Behind NVIDIA's Stunning 400% Data Center Revenue Growth

NVIDIA Corporation’s NVDA Data Center business has seen remarkable growth, with sales jumping over 400% to reach $18.4 billion in the fourth quarter alone. This surge highlights the essential role of the infrastructure that supports such expansion. Equinix Inc. EQIX, with its 2% dividend yield, stands out in this landscape, supplying the vital data center services that fuel NVIDIA’s operations. This collaboration places Equinix at the forefront of the AI and data revolution, providing investors with a direct line into the rapidly expanding digital economy.

Don't Miss:

• Investing in real estate just got a whole lot simpler. This Dara Khosrowshahi-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. 

Equinix’s global network of interconnected data centers forms the backbone of digital business, enabling seamless data exchange and supporting the high-performance computing demands of NVIDIA’s AI platforms. This strategic partnership not only amplifies Equinix’s service offerings but also aligns its growth trajectory with the rapid advancements in AI, cloud computing, and data analytics spearheaded by NVIDIA.

The digital transformation, accelerated by AI, is set to drive exponential demand for data center capacity. Equinix, with its extensive portfolio of strategically located data centers, is well-equipped to meet this surging demand. The company’s focus on expanding its infrastructure, enhancing connectivity, and fostering digital ecosystems positions it as a linchpin in the digital economy’s infrastructure.

The surge in AI’s influence across sectors, from self-driving cars to medical breakthroughs, has made the demand for dependable, expansive, and secure data centers more pressing than before. Equinix stands out by offering these vital services, and its close ties with NVIDIA’s strong operations underscore a promising outlook for revenue growth in the years ahead.

In recognition of its strategic market position and operational strength, Equinix announced a generous dividend of $3.41 per share for the fourth quarter of 2023, resulting in annual dividends of $13.64. This commitment to shareholder returns, combined with Equinix’s central role in supporting the AI-driven data economy, makes it a compelling investment for those looking to capitalize on the digital transformation wave. The partnership with NVIDIA not only enhances Equinix’s technological prowess but also provides investors with a unique opportunity to engage with the digital infrastructure sector, poised for remarkable growth in the AI era.

Read Next:

• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. 
• Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.

Image credit: Shutterstock

Start generating passive income through real estate

Check out these featured investments from Benzinga's Real Estate Offerings Screener.