Of late, we’ve seen quite a bit of attention shifted from the model makers themselves (think OpenAI) to the AI infrastructure buildout. Undoubtedly, the frontier innovators are still worth following closely, especially as the agentic AI age continues to mature while the era of physical AI and robotics looks to enter the physical realm.
Undoubtedly, Anthropic and OpenAI have been releasing a lot of AI-native tools. And while these tools have disruptive potential, it’s ultimately going to come down to how other companies in tech (yes, that includes the software companies that are down big-time since the start of the year) are going to use such tech.
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Navigating disruptors
Either way, disruptive technologies move markets and, with that, investors should be ready to “stock-pick” their way to better results in a market environment that’s bound to be volatile, with big losers and share-taking massive winners.
At times, it can be hard to pick the winners from the losers in AI. Some tech-savvy folks might spot an opportunity that most can’t. And while I’d encourage investors to put in the homework when analyzing potential beneficiaries as the AI wave gets a bit more turbulent, I’d also look at some of the names positioned to win regardless of who takes the crown.
Opportunities in the AI buildout
So, instead of getting a massive win, perhaps it makes a bit more sense to settle for a mild win that’s far more predictable. When it comes to predictability in AI, perhaps the energy plays and infrastructure plays are more enticing at a time like this, when it’s hard to make sense of what Anthropic’s new tool and the rise of vibe coding will do to the software world.
Either way, here are two “hard asset” plays that stand to serve the AI buildout. When it comes to the great rise of the “AI factory,” I think it’s tough to overlook Brookfield and the many companies that are betting big on AI infrastructure.
Brookfield Corp.
There are many publicly traded Brookfield companies. But perhaps the cheapest and broadest way to bet on the firm is through Brookfield Corp. (TSX: BN). The company is looking to position itself as an “architect” of the physical AI layer, and it’s more than willing to spend money in order to make big money.
The company’s $100 billion spend on “AI factories” seems like a great way to win as an AI data centre landlord. What’s more, though, is that the firm isn’t just going about the opportunity with real estate. The Canadian firm also stands to become a major player in power (think renewables) generation, energy infrastructure, and other bottlenecks facing AI’s progression.
Brookfield already has ample big deals with big tech under its belt. While time will tell how the big $100 billion AI pivot goes, I do view the latest 18% dip in the stock as an opportunity to buy. Of course, there are more specific ways to play the AI infrastructure buildout with Brookfield’s other companies. But, for the best value, I think BN shares look that much more interesting, especially if a bear market is in the cards.
