Equinix, Inc. (EQIX): A Bull Case Theory

We came across a bullish thesis on Equinix, Inc. on Investomine’s Substack. In this article, we will summarize the bulls’ thesis on EQIX. Equinix, Inc.'s share was trading at $956.19 as of February 13th. EQIX’s trailing and forward P/E were 69.49 and 58.48 respectively according to Yahoo Finance.

Equinix, Inc. shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet.  EQIX closed 2025 with strong operational momentum, record bookings, and accelerating demand from AI workloads, solidifying its position as the neutral global infrastructure backbone for hybrid cloud and AI applications. Revenue reached approximately $9.2 billion, up mid-single digits year over year, while operating income and adjusted EBITDA grew sharply, with margins approaching 49%.

AFFO expanded to roughly $3.8 billion, reflecting high-single-digit growth per share and improving operating leverage across its global footprint in the Americas, EMEA, and Asia-Pacific. Fourth-quarter results highlighted record annualized gross bookings, with over half of large deals tied to AI, and interconnections surpassing 500,000 globally, demonstrating strong network effects.

Despite these gains, the business remains highly capital intensive, with free cash flow still negative due to ongoing data center buildouts, xScale expansion, and real estate acquisitions, alongside rising leverage to fund growth. Management continues to prioritize long-term strategic positioning and capacity over short-term cash flow, while maintaining a consistent dividend, up roughly 10% year over year, supported by solid AFFO growth.

Looking ahead to 2026, management guided for double-digit revenue growth, EBITDA margin expansion toward 51%, and low double-digit AFFO growth, suggesting the prior investments are beginning to scale. Equinix’s global reach, AI-driven demand, and record bookings position it at the center of structural shifts in digital infrastructure, creating a compelling long-term growth story.

However, investors must weigh the upside of scalable AI and hybrid cloud exposure against the capital intensity, interest rate sensitivity, and continued dependence on capital markets to fund expansion. For those comfortable with these dynamics, Equinix offers unique access to the backbone of distributed AI, combining growth, strategic positioning, and dividend potential in a single investment thesis.

Previously, we covered a bullish thesis on Microsoft Corporation (MSFT) by Ray Myers in May 2025, which highlighted the company’s dominant position in enterprise software, gaming, cloud, and AI integration, driving long-term growth. MSFT’s stock price has depreciated by approximately 11.43% since our coverage. Investomine shares a similar view on Equinix, Inc. (EQIX) but emphasizes its role as a global AI and hybrid cloud infrastructure leader, with record bookings and strong network effects shaping its growth.

Equinix, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held EQIX at the end of the third quarter which was 66 in the previous quarter. While we acknowledge the risk and potential of EQIX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EQIX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.