An Unprecedented Investment Opportunity: 2 Top Growth Stocks to Buy and Hold for the Next 20 Years to Take Advantage of the AI ​​Revolution

Artificial intelligence (you) is a revolutionary technology. And according to a PwC estimate, it could contribute $15.7 trillion to the global economy in 2030. That’s more than the current combined economic output of China and India.

The you revolution requires four factors to thrive: Renewable energydata centers, semi-conductorand computing power. That aligns perfectly with the brothers’ strategies Brookfield Renewables (BEPC 3.07%) (BEP 4.34%) and Brookfield Infrastructure (BIPC 3.31%) (BEEP 0.93%). It makes them great growth stocks to buy for those looking to capitalize on the unprecedented you investment opportunity.

An astonishing power vacuum

Brookfield Corporationthe parent company of Brookfield Renewable and Brookfield Infrastructure, has aligned its investment focus around several key megatrends. CEO Bruce Flatt wrote about the electric power opportunity in his second quarter letter to investors:

The next 20 years will be an unprecedented period for the accumulation of electricity. The electrification of industrial capacity, automobiles, home heating and other uses is driving unprecedented growth in electricity demand. In addition, the world is adding data centers for you and cloud computing at an astonishing pace.

Flatt noted that the world will need about 20,000 gigawatts (GW) of electricity generation capacity over the next two decades to meet the world’s growing electricity needs. He then put this into perspective: there is currently about 8,000 GW of power generation capacity worldwide, almost half of which is very carbon intensive (e.g. coal) and will have to be retired. in the future. “Put another way,” Flatt wrote, “we need to more than double current capacity (which it was largely constructed over the last 50 years), while also replacing about 50% of what we have.”

It is a daunting task. However, Brookfield Renewable is up for the challenge. It is one of the largest builders of renewable energy projects in the world. It has over 230 GW of projects owned or in various stages of development. It works directly with leading technology companies to meet their growing energy needs you and cloud business. For example, he recently associated with Microsoft to provide 10.5 GW of power in the coming years. It is eight times larger than the largest power purchase agreement ever signed. However, it is a small fraction of the 16,000 GW needed to meet future demand.

Capitalizing on vast opportunities

Brookfield Infrastructure is working to capitalize on the other side of the you requires drivers. Within a few years, it became one of the largest data center builders in the world. It has acquired several data center platforms to increase its scale and expand its capacity.

The company at present has more than 135 data centers with approximately 750 megawatts (MW) of 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 are either already in operation or under contract for development. This robust development pipeline leads Brookfield to believe it can grow its data center platform revenue 2.5 times over the next three years alone.

Brookfield Infrastructure also invests in construction of two semiconductor plants in Arizona with Intel. The $30 billion complex will provide US with chips needed to run data centers for you and cloud computing applications.

These investments are likely just the beginning. Bruce Flatt wrote: “The computational power needed by algorithms to advance medical discovery and industrial productivity is great. The amount needed to fuel the computing power to train robotics toward near-human intelligence is large.” This suggests the world will need more data centers and more high-powered chips to run these applications, which should provide many new investment opportunities for Brookfield Infrastructure in the coming decades.

Supercharged growth prospects

Brookfield Renewable and Brookfield Infrastructure each expect to grow their cash flow per share at an annual rate of more than 10% over the next several years. That should give them the power to increase their high-yielding dividends (currently over 4% each) by 5% to 9% annually. Add rising dividend income to their rapidly growing earnings, and both companies could easily produce total annual profits in the mid-teens. This makes them excellent ways to take advantage of the unprecedented AI-driven growth potential of renewable energy and computing power.