Blue Owl Capital (OWL) just landed at the center of the AI infrastructure buzz, teaming up in a $4 billion joint venture to build an advanced data center campus in Pennsylvania. Partnering with Chirisa Technology Parks and Machine Investment Group, Blue Owl is laying the foundation for a long-term lease with a major cloud computing company. This move positions Blue Owl as a key player in supporting AI's next growth phase. For investors, this is more than another deal; it signals that Blue Owl is placing lasting bets on expanding digital infrastructure that could ride the AI wave for years to come.
The spotlight on this new project arrives as Blue Owl's shares have had a bumpy ride over the past year. The stock has climbed 15% in the last twelve months, despite dipping nearly 25% since January and seeing momentum fade in recent months. Alongside strong growth in annual revenue and a dramatic jump in net income, Blue Owl is steadily expanding its development partnerships, now reaching a $20 billion footprint across Pennsylvania and Virginia. This latest transaction adds real heft to the company's broader strategy, but it comes at a time when investors seem to be recalibrating their appetite for AI-related assets. With these moves and price swings in mind, the question arises whether the market is underestimating Blue Owl's future gains or if next-generation AI has already been fully priced into the stock.
According to the most-followed narrative, Blue Owl Capital is being valued well below its projected future, with analysts suggesting a meaningful upside and the stock currently trading at a discount to consensus fair value.
Structural shifts away from traditional bank lending toward private lenders, combined with robust demand for alternative credit and asset-backed finance, are enabling large pipeline growth and high deployment opportunities. This directly supports future AUM growth and a positive trajectory in revenues.
Curious what is really fueling this bullish price target? The foundation is a mix of aggressive earnings growth, rapidly climbing revenues, and a profit margin forecast that would put most industry peers to shame. Want to see the bold assumptions analysts are making about where Blue Owl's business could be just three years from now? The numbers behind this valuation might surprise even seasoned market watchers.
Result: Fair Value of $23.92 (UNDERVALUED)
However, a slowdown in capital inflows or challenges integrating recent acquisitions could easily derail these optimistic forecasts for Blue Owl's future growth.