SGA Is Betting on Equinix (EQIX) as AI Demand Accelerates

SGA Is Betting on Equinix (EQIX) as AI Demand Accelerates

Mon, August 24, 2026 at 4:56 PM GMT+3 3 min read

• EQIX -1.94%

Sustainable Growth Advisers (SGA), an investment management company, released its second-quarter 2026 investor letter for its "Global Growth Strategy." The letter can be downloaded here. The SGA Global Growth Portfolio returned 7.4% gross and 7.2% net, compared with 14.9% for the MSCI ACWI and 19.8% for the MSCI ACWI Growth Index. Momentum leadership and enthusiasm around AI infrastructure drove markets, with semiconductor, memory, and hardware stocks accounting for much of the gain. Although the portfolio owned AI beneficiaries, broader holdings lagged despite fundamentals, as median revenue and EPS growth reached 12% and 14% and more than 60% of the holdings beat expectations. SGA believes valuation compression reflects sentiment rather than weaker business quality, leaving the portfolio near its widest discount to the market since inception. The firm continues to favor durable compounders and expects 16% revenue growth and 20% earnings growth over three years. Also, please check the Fund's top five holdings to see its best picks for 2026.

In its second-quarter 2026 investor letter, SGA Global Growth Strategy added Equinix, Inc. (NASDAQ:EQIX) to its portfolio. Equinix, Inc. (NASDAQ:EQIX) is a leading digital infrastructure company that operates a global network of data centers and interconnected ecosystems, enabling seamless delivery of digital experiences and cutting-edge AI quickly and efficiently. On August 21, 2026, Equinix, Inc. (NASDAQ:EQIX) closed at $1,065.39 per share. The one-month return of Equinix, Inc. (NASDAQ:EQIX) was 1.78% and its shares gained 36.17% over the past 52 weeks. Equinix, Inc. (NASDAQ:EQIX) has a market capitalization of $105.12 billion.

SGA Global Growth Strategy stated the following regarding Equinix, Inc. (NASDAQ:EQIX) in its Q2 2026 investor letter:

"A position in Equinix, a leading global data center provider, was initiated during the quarter. The company sells space, power, and connectivity services across a global footprint, binding strategic clients to its facilities through interconnection and coplacement for low-latency and high-bandwidth services. Equinix is a familiar name for SGA, having been a portfolio holding for ten years before being sold in 2024 as the growth rate had slowed and management was in the midst of a leadership transition. Both dynamics have since reversed, with growth re-accelerating as AI inferencing ramps and power demand remains high, and with new leaders now announced and in place." (Click here to read the full text)

Equinix, Inc. (NASDAQ:EQIX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Equinix, Inc. (NASDAQ:EQIX) at the end of the first quarter which was 51 in the previous quarter. While we acknowledge the potential of Equinix, Inc. (NASDAQ:EQIX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Equinix, Inc. (NASDAQ:EQIX) and shared a list of oversold NASDAQ stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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