The digital infrastructure boom continues to gather momentum, and two ASX 200 stocks are shaping up as compelling ways to ride this long-term trend.
Both stocks offer exposure to the growing global demand for data centres — the physical backbone of cloud computing, AI, and streaming.
One is a pure play in its early innings. The other is a seasoned operator with a pivot underway.
Here's what analysts at Wilsons are saying about these AI stocks.
DigiCo Infrastructure REIT (ASX: DGT)
DigiCo owns, operates, and develops data centres in Australia and the US, with a $4 billion portfolio spanning 13 assets and a development pipeline of 162 megawatts.
While the DigiCo share price has struggled since its listing, the team at Wilsons remains confident in its outlook.
The investment company notes that "there has been no change in its operating fundamentals" and continues to believe that it is "well placed to deliver stable and growing cash flows and distributions over the medium and long-term."
Wilsons also highlights several short-term catalysts to watch. These include HCF certification for its flagship SYD1 site, leasing activity on underutilised capacity, and the potential for capital partnering to unlock value.
And with the ASX 200 stock trading at a discount to its net tangible assets, Wilsons appears to see meaningful upside for its shares. It said:
DGT currently trades at a discount to NTA. Its NTA backing is also expected to grow over time as its accretive development pipeline is de-risked. This provides meaningful potential upside to DGT's current share price.
Goodman Group (ASX: GMG)
Another ASX 200 AI stock that has caught the eye of Wilsons is Goodman Group. In fact, it is the investment company's preferred play on the digital infrastructure thematic.
Goodman has long been known for its logistics footprint, but it is now pivoting aggressively toward data centres. This is a shift Wilsons supports. It said:
The group has historically focused on logistical warehouses, but is now pivoting towards digital infrastructure, which now accounts for >50% of its development book. Notwithstanding the investment appeals of DigiCo, from a Focus Portfolio context GMG is our preferred exposure to the digital infrastructure thematic.
This is due to GMG's significant global scale (and market liquidity), its exceptionally strong balance sheet (and financial conservatism), and its long track record of development execution through cycles (lessening execution risk).
And like DigiCo, Wilsons sees the ASX 200 AI stock's valuation as attractive. Especially given its expectation for Goodman to deliver double-digit earnings growth for the foreseeable future. It adds:
With GMG trading at a forward PE multiple of ~26x, the company offers attractive value for a high-quality operator that should deliver low-teens EPS growth over the medium/long-term.
