Tech companies like Nvidia, Microsoft, Meta Platforms, and Alphabet are getting a lot of attention these days. They have been among the early leaders in capitalizing on the AI megatrend. As a result of all the hype, their share prices have skyrocketed.
However, they aren't the only companies benefiting from the AI megatrend. Here are three unexpected companies capitalizing on AI that are hiding in plain sight.
Image source: Getty Images.
Brookfield Corporation
Brookfield Corporation (BN 4.49%) is a leading global investment firm. It has over $1 trillion in assets under management across real estate, infrastructure, renewable energy, and other asset classes. Its expertise has put it in a strong position to capitalize on the AI infrastructure megatrend.
The investment firm sees a $7 trillion opportunity to invest in AI infrastructure over the coming decade. One way it aims to capitalize on this opportunity is through the recent launch of its inaugural Brookfield Artificial Intelligence Infrastructure Fund. Brookfield is an investor in the fund (as is Nvidia), which aims to acquire up to $100 billion in AI infrastructure assets. Initial investments include the launch of Brookfield-backed cloud services company Radiant. The company also plans to invest in AI factories (specialized data centers to support AI).
NYSE: BN
Key Data Points
This fund is only the beginning. Brookfield's operating companies are investing in renewable energy to support AI power demand (including building 10.5 gigawatts (GW) of power for Microsoft), as well as the data centers and semiconductor fabrication facilities to support the need for compute power. The company's wide-ranging investments in AI infrastructure position it well to capitalize on this megatrend.
Prologis
Prologis (PLD 1.86%) is a real estate investment trust (REIT) focused on owning and operating logistics facilities, like warehouses. The company also has experience installing solar energy and battery storage systems at its sites to support its customers' power needs.
NYSE: PLD
Key Data Points
The REIT's expertise in constructing powered building shells is leading it to expand into developing data centers on some of its vast land bank. It sees a generational value creation opportunity to invest in data centers. The company has started $2 billion of data center development projects since 2023 and currently has $1 billion of projects representing 300 megawatts (MW) of power capacity under development.
Prologis ended last year with a data center power pipeline of 5.7 GW of capacity. The company believes it can develop over 10 GW of capacity in the future. The REIT estimates it can invest $30 billion to $50 billion in data center development projects over the next decade, which could create $7.5 billion to $25 billion in value for shareholders due to the strong economics of these projects.
NextEra Energy
NextEra Energy (NEE 0.06%) is a leading electric utility and clean power development company. It's one of the largest renewable energy producers, a leader in battery storage, and a top developer of electric and gas transmission infrastructure. The company also has expertise in gas power and nuclear energy.
NYSE: NEE
Key Data Points
The company's leadership in clean energy infrastructure has made it the partner of choice for major technology companies seeking to secure power supplies for their AI data centers. For example, NextEra Energy recently signed 2.5 GW of clean energy contracts (solar and battery storage) with Meta Platforms. It also signed a collaboration with Google to accelerate nuclear energy deployment, including the restart of a dormant 615-MW nuclear power plant by early 2029.
NextEra Energy is also leveraging its power expertise to develop data centers in collaboration with other companies. For example, it's working with Google to jointly develop multiple GW-scale data center campuses across the country. Additionally, it's working with ExxonMobil to develop a 1.2 GW gas plant to power a data center.
AI-driven growth catalysts
Brookfield Corporation, Prologis, and NextEra Energy aren't the first companies most investors think of when they're looking for AI stock investments. However, these companies have significant growth potential as they capitalize on the trend. With the market currently overlooking these unexpected AI stocks, you have the potential to earn robust returns by investing in them before others see their AI-driven upside.
