artificial intelligence (artificial intelligence) is a revolutionary technology. According to PwC estimates, it could contribute a staggering $15.7 trillion to the global economy by 2030. That’s more than the current combined economic output of China and India.
the artificial intelligence A revolution requires four factors to succeed: Renewable energydata centers, Semiconductorsand computing power. This is perfectly in line with the siblings’ strategies. Brookfield Renewable (NYSE: BPC)(NYSE: BEP) and Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP).This makes them great growth stocks. To buy For those seeking to take advantage of unprecedented opportunities artificial intelligence Investment opportunity.
A stunning power vacuum
Brookfield CorporationBrookfield Renewable, the parent company of Brookfield Infrastructure and Brookfield Renewable, has pivoted its investment focus around several major trends. CEO Bruce Flatt wrote about the opportunity in electricity in his second-quarter letter to investors:
The next 20 years will be an unprecedented period for electricity construction. Electrification of industrial power, automobiles, home heating and other uses is driving unprecedented growth in electricity demandMoreover, the world is adding data centers to artificial intelligence Cloud computing is evolving at an amazing pace.
Flatt pointed out that the world will need an estimated 20,000 gigawatts (George W.) of power generation capacity over the next two decades to meet the world’s growing electricity needs. Then put that into perspective: There are currently about 8,000 gigawatts of power generation capacity worldwide, about half of which is carbon-intensive (e.g., coal-fired) and will need to be retired. in the future“In other words,” Flatt wrote, “we need to More than double Current capacity (any He was It is largely built “Over the past 50 years) replacing about 50% of what we have.”
It’s a daunting task. But Brookfield Renewables is up for the challenge. It’s one of the world’s largest renewable energy builders. It has more than 230 gigawatts of projects owned or in various stages of development. And it works directly with leading technology companies to meet the growing energy needs of its countries. artificial intelligence and cloud companies. For example, it recently partnered with Microsoft It is expected to produce 10.5 gigawatts of power in the coming years. That’s eight times larger than the largest power purchase agreement ever signed. However, it’s a tiny fraction of the 16,000 gigawatts needed to meet future demand.
Take advantage of the wide opportunities
Brookfield Infrastructure is tapping into the other side of the artificial intelligence Demand drivers. Within a few years, it has become one of the largest data center builders in the world. It has acquired several data center platforms to increase its size and expand its capacity.
The company currently It contains more than 135 data centers with a capacity of approximately 750 megawatts (M and) of critical load capacity. Its global platform He has the ability to Brookfield plans to develop 2.5 GW of capacity in the coming years. This includes 1.4 GW already in operation or under contract for development. This strong development pipeline supports Brookfield’s view that it can grow its data center platform revenue 2.5 times over the next three years alone.
Brookfield Infrastructure also invests in building Two semiconductor manufacturing facilities in Arizona with IntelThe $30 billion complex will provide we With the chips needed to power data centers artificial intelligence And cloud computing applications.
These investments are likely just the beginning. “The computing power required for algorithms to power medical discovery and industrial productivity is vast,” writes Bruce Flatt. “The amount of computing power required to train robots to near-human intelligence is enormous.” This suggests that the world will need more data centers and more high-powered chips to power these applications, which could provide Brookfield Infrastructure with many new investment opportunities in the coming decades.
Huge growth prospects
Both Brookfield Renewables and Brookfield Infrastructure expect to grow their cash flow per share at double-digit annual rates over the next several years. This gives them the potential to grow their high-yielding dividends (currently above 4% each) by 5% to 9% annually. Add to their growing dividend income their rapidly growing earnings, and both companies could easily achieve total annual returns in the mid-20s. This makes them a great way to capitalize on the unprecedented growth potential of AI-powered renewable energy and computing power.
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Matt Delallo The Motley Fool has positions in Brookfield Corporation, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, and Intel and recommends the following options: Buy $30 January 2025 Calls on Intel, Sell $30 January 2025 Calls on Intel, Sell $45 November 2024 Calls on Intel, and Sell $45 October 2024 Calls on Intel. The Motley Fool has positions in Brookfield, Brookfield Corporation, Brookfield Renewable, and Microsoft and recommends them. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable Partners, and Intel and recommends the following options: Buy $395 January 2026 calls on Microsoft, sell $35 August 2024 calls on Intel, and sell $405 January 2026 calls on Microsoft. The Motley Fool has Disclosure Policy.
Unprecedented Investment Opportunity: Two of the Best High-Growth Stocks to Buy and Hold for the Next 20 Years to Benefit from the AI Revolution Originally posted by The Motley Fool