BIP - This Overlooked AI Stock Is Stronger Than It Has Ever Been
2024-05-04 08:41:35 ET
Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC) operates a globally diversified portfolio of infrastructure assets. The company's pipelines, ports, transmission lines, and railroads are part of the backbone of the global economy.
That focus on the real economy has caused many investors to overlook the inroads it has made in building out the backbone of the digital economy. In recent years, it has invested heavily in data centers, semiconductor fabrication facilities, and other data-related infrastructure assets. These investments have put Brookfield Infrastructure in an extremely strong position to grow rapidly , driven partly by its ability to capitalize on the artificial intelligence (AI) megatrend.
Brookfield Infrastructure is coming off a strong first quarter. The company's funds from operations (FFO) surged 11% compared to the prior-year period . The main driver was its transport segment. FFO from that unit rocketed by 57% compared to the year-ago period, fueled by its recent acquisition of container-leasing company Triton, inflation-driven tariff growth, and rising volumes. That helped more than offset the flat to down years of its utilities and midstream segments.
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This Overlooked AI Stock Is Stronger Than It Has Ever Been