Analyst Says DigitalBridge Group Inc (DBRG) Among the Best Small-Cap AI Stocks to Buy

We recently published Top 10 Stock Recommendations You Can’t Miss Amid Growing AI Bubble Fears. DigitalBridge Group, Inc. (NYSE:DBRG) is one of the top recommended stocks.

Dan Veru, Palisade Capital Management senior partner and CIO, said in a latest program on CNBC that DigitalBridge is a decent stock to buy amid the company’s exposure to AI and infrastructure.

“It’s a great read through into some of the key investments that are being made in the AI and AI infrastructure part of the economy, but you’re not taking technology risk because you’re also investing in some of the more infrastructure-related parts. We need power generation. They’re a play on that. They have a lot of embedded gains that are yet to be realized because they do make technology investments and they’ve been raising capital from institutions and now individual investors, and there’s talk that because of their expertise in identifying different areas of technology to invest in, perhaps other asset managers might view them as an attractive acquisition.”

Ave Maria Focused Fund stated the following regarding DigitalBridge Group, Inc. (NYSE:DBRG) in its Q3 2024 investor letter:

“DigitalBridge Group, Inc. (NYSE:DBRG): DigitalBridge is currently raising their third flagship digital infrastructure fund. If the raise is successful, DigitalBridge’s stock price should prove to be quite cheap at current levels. If the raise is unsuccessful, DigitalBridge will likely be bought by a larger competitor. There are reasons to be optimistic about the fund raise. Switch, the leading operator of AI data centers, was taken private by DigitalBridge just under two years ago at an ~$11B valuation. There was a recent news report suggesting it may go public at a $40B valuation. That valuation could be too optimistic, but in our view there is little doubt that Switch will be a successful investment for DigitalBridge, and its IPO could provide a boost to DigitalBridge’s fund raising efforts.”

While we acknowledge the potential of DBRG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.