U.S. stocks have been the clear leaders in the artificial intelligence (AI) race so far, with megacaps like Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT) and smaller private companies like OpenAI making waves globally.
AI-driven spending has been reaching record levels, and Canada isn’t sitting on the sidelines anymore.
Last fiscal year, the government unveiled the “Canadian Sovereign AI Compute Strategy,” with plans to invest up to $2 billion over the next five years to expand its capabilities.
A big part of that includes $700 million in new funding to build up Canada’s AI infrastructure. The plan is to capitalize on the country’s “clean energy, abundant land, and naturally cool climate” — all of which make it easier and more sustainable to operate large data centres.
Another billion is earmarked to build an extensive sovereign supercomputing infrastructure and a smaller computing facility.
Those goals might sound bold, but Canada’s got the people to make it happen. With around 10% of the world’s top-tier AI researchers — the second-most across the world — Canadians are clearly getting serious about the global AI race.
Want to get in on the action? With everyone talking about “buying Canadian” these days, these two stocks might be a good place to start.
BCE
BCE (TSX: BCE) might be best known as Canada’s second-largest telecom giant — with about 28% of the market — and that sweet 5.4% dividend yield investors love. But lately, Bell’s been turning heads for something else entirely — its big bet on artificial intelligence.
The company recently rolled out Bell AI Fabric — a multibillion-dollar initiative to build the largest AI computing network in the country. Talk about going all in.
To make it happen, BCE is setting up six AI data centres across British Columbia — and it’s expecting that investment to pay off in a big way. Management projects about $700 million in AI-related revenue by 2025, with growth of roughly 24% to 29% per year over the next few years.
If things go according to plan, Bell’s AI business could be pulling in $1.5 billion in revenue by 2028. Not bad for a telecom company that’s already known for steady dividends.
Brookfield Infrastructure
Brookfield Infrastructure (TSX: BIP.UN) isn’t just another dividend darling — it’s also quietly positioning itself as a key player in the AI boom.
The company recently unveiled a $5 billion partnership with Bloom Energy (NYSE: BE) to roll out Bloom’s advanced fuel cell technology and power Brookfield’s growing network of AI “factories.” In simple terms, Brookfield’s making sure the AI world has the energy muscle it needs to keep running.
Brookfield’s making moves on multiple fronts. Last year, it teamed up with Microsoft, and it’s working closely with Google too, all as part of a plan to grow its earnings by about 25% a year through 2030. Basically, it’s betting big on AI infrastructure and long-term tech partnerships to keep the growth engine humming.
Still, the company hasn’t strayed from what it does best — delivering steady, reliable income. It aims to pay out between 60% and 70% of its cash flow as dividends. Brookfield currently pays $2.41 per share in dividends annually, translating to a 4.8% yield. And with 16 straight years of dividend growth, averaging 9% annually since 2008, it has built a strong record of consistency.
