Unprecedented Investment Opportunity: The 2 Best Growth Stocks to Buy and Hold for the Next 20 Years to Benefit from the AI ​​Revolution

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 economic output of China and India combined.

This Artificial intelligence For a revolution to develop, four factors are needed: Renewable energydata centers, semiconductorsand computing power. This fits perfectly with the strategy of the siblings Brookfield Renewables (BEPC 3.54%) (BEP 4.28%) AND Brookfield Infrastructure (BIPC 4.19%) (BIP 2.02%). This makes them great growth stocks. to buy for those who want to take advantage of the unprecedented Artificial intelligence investment opportunity.

Stunning power vacuum

Brookfield Corporationparent company of Brookfield Renewable and Brookfield Infrastructure, has focused its investment around several key megatrends. 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 the expansion of electricity. The electrification of industrial power, cars, home heating and other applications is driving unprecedented growth in demand for electricity. In addition, the number of data centers in the world is growing Artificial intelligence and cloud computing at a dizzying pace.

Flatt noted that the world will need about 20,000 gigawatts (GW) of generating capacity over the next two decades to meet the world’s growing electricity demand. He then put this into perspective: there is currently around 8,000 GW of generating capacity worldwide, almost half of which is highly carbon intensive (e.g. coal-fired) and will need to be phased out in the future“Put another way,” Flatt wrote, “we need to more than double current capacity (Which was largely built “over the last 50 years), replacing about 50% of what we have.”

It’s a tall order. But Brookfield Renewable is up to the challenge. It’s one of the world’s largest developers of renewable energy projects, with more than 230 GW of projects under its ownership or in various stages of development. It works directly with leading technology companies to meet the growing energy needs of its customers. Artificial intelligence and cloud companies. For example, it recently started cooperation with Microsoft deliver 10.5 GW of capacity in the coming years. That’s eight times larger than the largest power purchase agreement ever signed by the corporation. But it’s a tiny fraction of the 16,000 GW needed to meet future demand.

Taking advantage of the enormous opportunities

Brookfield Infrastructure seeks to leverage the other side’s potential Artificial intelligence demand factors. In a few short years, it became one of the largest data center builders in the world. It acquired several data center platforms to increase scale and expand capacity.

Business Currently has over 135 data centers with a capacity of approximately 750 megawatts (MW) critical load capacity. Its global platform has the potential to to develop 2.5 GW of capacity in the coming years. This includes 1.4 GW that is already in service or under development agreement. This solid development pipeline is driving Brookfield’s view that it can grow the profits of its data center platform by 2.5x over the next three years.

Brookfield Infrastructure is also investing in construction two semiconductor manufacturing plants in Arizona IntelThe $30 billion complex will provide US with chips needed to run data centers Artificial intelligence and cloud computing applications.

These investments are likely just the beginning. Bruce Flatt wrote, “The amount of computing power required to power algorithms to advance medical discovery and industrial productivity is large. The amount needed to power computing to train robotics toward human-like intelligence is enormous.” This suggests that the world will need more data centers and more powerful chips to support these applications, which should provide many new investment opportunities for Brookfield Infrastructure in the coming decades.

Supercharged growth prospects

Brookfield Renewable and Brookfield Infrastructure are both expecting cash flow per share to grow by more than 10% per year for the next several years. That should give them the ability to increase their high-yielding dividends (currently over 4% each) by 5% to 9% per year. Add their rising dividend yields to their rapidly growing earnings, and both companies could easily achieve total annual returns in the mid-teens. That makes them great ways to capitalize on the unprecedented growth potential of renewable energy and AI-powered computing power.