Analysis of Mizuho Analyst's AI Bubble Concerns (2026) and AI Data Center Market Dynamics

This report is based on a CNBC Squawk Box interview with Mizuho real estate analyst Vikram Malhotra [1], where he discussed the AI data center boom and concerns about an AI bubble in 2026. Market data from the day prior (Dec 30, 2025) shows the Real Estate sector—including data center real estate investment trusts (REITs)—was the best performer, rising 0.57%, while the Technology sector (home to AI hardware providers) gained 0.05% [0].

Relevant stock metrics include:

• EQIX (Equinix)
  : Market cap $75B, YTD return -18.48%, 5-year return +7.78%, with an analyst consensus BUY rating and 18% upside potential [0]
• DLR (Digital Realty Trust)
  : Market cap $53.7B, YTD return -11.64%, 5-year return +12.10%, with an analyst consensus BUY rating and 27.2% upside potential [0]
• NVDA (NVIDIA)
  : Market cap $4.57T, YTD return +35.59%, 5-year return +1335.99%, with 88.3% of revenue from data centers and an analyst consensus BUY rating with 37.3% upside potential [0]

A key information gap is the lack of a full transcript of Malhotra’s comments, so the specific data and arguments supporting his bubble concerns are unknown. Dec 31 market data is also unavailable to assess immediate investor reaction to his remarks.

1. The positive Dec 30 sector performance and strong analyst consensus for EQIX, DLR, and NVDA indicate ongoing investor confidence in the AI data center ecosystem, despite bubble concerns [0].
2. NVIDIA’s heavy reliance (88.3%) on data center revenue means its performance is intricately tied to the AI infrastructure boom [0].
3. Data center REITs like EQIX and DLR are direct beneficiaries of increasing demand for AI computing infrastructure, driving their bullish analyst outlooks [0].

• Risks
  : Valuation concerns for NVDA (P/E 45.99x) and EQIX (P/E 70.42x) could make these stocks vulnerable to a correction if AI bubble fears intensify and investor sentiment shifts [0].
• Opportunities
  : Continued expansion of AI data centers presents growth opportunities for data center REITs and AI hardware providers, supported by long-term demand for AI computing power [0].

Mizuho analyst Vikram Malhotra discussed the AI data center boom and 2026 AI bubble fears during a CNBC Squawk Box interview. Market data shows the Real Estate (data center REITs) and Technology (AI hardware) sectors performed positively on Dec 30, with bullish analyst consensus ratings and upside potential for EQIX, DLR, and NVDA. While these stocks benefit from the AI data center boom, their high valuations pose risks if bubble concerns materialize. Dec 31 market data and full interview transcript details are currently unavailable to provide a complete assessment of the immediate impact.