AI data centers and biotech: what Blackstone’s latest moves mean for the stock

Blackstone (BX) has put fresh capital to work on two fronts, sponsoring the IPO of Blackstone Digital Infrastructure Trust to own AI focused data centers, and committing $250 million to Anagram Therapeutics for an enzyme replacement therapy.

At a share price of $122.33, Blackstone has a 30 day share price return of 8.52% but a year to date share price decline of 22.97%. Its 5 year total shareholder return of 69.87% points to longer term gains despite recent volatility.

If Blackstone’s AI focused data center plans caught your attention, you may also want to see how other companies are positioned around this theme with 40 AI infrastructure stocks

With Blackstone shares down 23% year to date but still showing a 5 year total return near 70%, and trading about 17% below the average analyst price target, investors may ask whether there is still a buying opportunity or whether the market is already pricing in the next leg of growth.

Most Popular Narrative: 24.6% Undervalued

Blackstone’s most followed narrative puts fair value at $162.26 per share versus the current $122.33. This gap is what the thesis seeks to explain.

The expansion in private credit, particularly in investment-grade private credit, shows a 35% year-over-year growth, indicating potential for significant revenue streams due to larger spreads and structural tailwinds in the credit markets. The innovation in private wealth management and strong fundraising results in this channel ($11 billion in the first quarter of 2025) suggest potential for margin expansion and revenue growth by further penetrating individual investor markets.

Want to see what has to happen for that fair value to hold up? The narrative focuses on brisk revenue gains, rising margins and a richer earnings multiple.

Result: Fair Value of $162.26 (UNDERVALUED)

However, you still need to watch for BCRED redemption pressures hitting fee earnings, as well as any broad pullback in private wealth flows that could weaken this thesis.

Another View: What The P/E Ratio Is Telling You

While the fair value model points to upside, Blackstone’s current P/E of 31.5x sits above its fair ratio of 25x and above the peer average of 29.3x, even though it is below the US Capital Markets industry at 41.9x. That mix of signals raises a simple question: how much valuation risk are you comfortable with at this price?

Next Steps

Mixed signals on value and risk so far? Take a moment to review the numbers for yourself, then weigh up the 2 key rewards and 3 important warning signs.

Looking for more investment ideas?

If Blackstone is only one piece of your watchlist, now is the time to broaden your opportunity set before the next wave of ideas gets crowded.

• Target potential mispricings by scanning for companies that combine quality fundamentals with room for market sentiment to catch up using the 51 high quality undervalued stocks.
• Focus on income by spotting companies that pair higher yields with signs of resilience and payout support through the 12 dividend fortresses.
• Prioritize resilience by filtering for businesses with robust finances and lower risk scores through the 71 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.