12:47 PM EDT, 03/20/2024 (MT Newswires) -- Equinix ( EQIX ) will be a strong beneficiary of generative AI adoption, with AI capex spending estimated to grow from $60 billion in 2023 to $305 billion in 2029, Oppenheimer said in a note Wednesday.

Growth will not be linear and bottlenecks may shift but companies with AI infrastructure will be strongly positioned, according to the note.

The firm expects a shortage of data center space in 2025 and anticipates the AI industry revenue to double over the next five years as it will make up 29% of the cloud market by 2028.

Oppenheimer said it is optimistic about Equinix ( EQIX ) along with other AI infrastructure companies including Microsoft ( MSFT ) , Cloudflare ( NET ) and DigitalOcean ( DOCN ) , and expects the stocks to hit peak multiple again in 2025.

Equinix ( EQIX ) will outperform because of significant new revenue streams and productivity improvements due to AI but results will start to reflect in H2 and 2025, the firm added.

Oppenheimer increased the price target on Equinix ( EQIX ) to $950 from $875 and kept its outperform rating.

The shares of the company were down 4.8% in recent trading.

Price: 804.75, Change: -39.83, Percent Change: -4.72