In today’s digital world, data is considered the new oil. The economy runs on data, especially in the realm of artificial intelligence (AI) applications. The demand for data infrastructure to support the movement and processing of data is rapidly increasing, and companies need to invest over $1 trillion in data centers in the next decade to keep up with this growth.
At Brookfield Infrastructure’s annual investor day, Felix Chan highlighted the importance of investing in data centers to support the rising data consumption driven by generative AI. Brookfield Infrastructure has strategically positioned itself in the data infrastructure market, making it a top stock to buy to capitalize on the upcoming AI-driven data center boom.
Udhay Mathialagan, who oversees Brookfield’s global data center platform, emphasized the essential role of physical data infrastructure in delivering AI technologies. AI relies on data centers for computing power and data storage, driving a surge in demand for specialized semiconductors like Nvidia’s H100 graphics cards. Companies are rushing to secure more space in data centers to power their AI ambitions, fueling a building boom that is expected to last for more than a decade.
Brookfield Infrastructure has made significant investments in the data center market, acquiring several platforms over the past few years. With interests in over 135 operating data centers and plans to develop additional capacity in the coming years, the company has positioned itself for substantial growth. This growth potential is expected to drive solid returns for investors, making Brookfield Infrastructure a compelling stock to buy and hold for the long term.
Investing in Brookfield Infrastructure could yield significant dividends for investors, as the company aims to grow its FFO per share by more than 10% annually. With a strong dividend yield and the potential for total annual returns in the mid-teens, Brookfield Infrastructure is a great AI stock to consider for long-term investment.
Before investing in Brookfield Infrastructure, it’s important to consider all the factors at play. While the company may not be among the top 10 stocks recommended by the Motley Fool Stock Advisor team, its AI-focused growth potential could offer substantial returns in the years to come. With the right strategy and understanding of the market, investing in Brookfield Infrastructure could be a wise decision for long-term investors.
Source link
