The AI Infrastructure Boom Is Just Getting Started: Here Are 2 Stocks to Buy

As hyperscalers are pouring billions to expand AI capabilities, these stocks are well-positioned to capitalize on the AI infrastructure boom.

Key Points
  • The AI infrastructure boom is still in its early stages, with massive spending on data centers, networking, power systems, and other technologies expected to continue growing.
  • Brookfield Infrastructure Partners is positioned to benefit through its data, utility, and midstream assets, with strong growth in its data business led by the expansion of data center capacity.
  • Celestica is seeing rapid growth from AI-driven demand for its networking switches and growing presence in Ai and machine learning computing.

The artificial intelligence (AI) infrastructure boom is creating one of the most significant investment opportunities of the decade, and the growth story is still in its early chapters. While many AI infrastructure-related stocks have already delivered impressive gains, the underlying demand driving the sector continues to accelerate, suggesting substantial upside ahead.

The rapid adoption of AI is forcing technology companies to invest heavily in the infrastructure needed to support increasingly powerful applications. Major hyperscalers and technology leaders are committing billions of dollars to expand their AI capabilities.

Companies are pouring capital into chips, high-performance servers, networking equipment, data centres, power generation, transmission systems, and grid modernization projects. As AI becomes increasingly embedded in business operations across industries, demand for this critical infrastructure is expected to grow further. For investors, this presents a solid investment opportunity to capitalize on the AI infrastructure boom.

With this background, here are two Canadian stocks to buy now to capitalize on the ongoing AI infrastructure boom.

A microchip in a circuit board powers artificial intelligence.

Source: Getty Images

Brookfield Infrastructure Partners

Brookfield Infrastructure Partners (TSX: BIP.UN) could be a solid stock to capitalize on the AI infrastructure boom. It owns essential infrastructure supporting AI. Its diversified portfolio spans utilities, transportation, midstream energy, and data, generating stable cash flows.

A growing share of Brookfield’s funds from operations (FFO) is generated by its data, utility, and midstream businesses, segments that directly benefit from rising demand for data centres, power generation, and network connectivity. As AI adoption accelerates worldwide, these assets are becoming increasingly valuable.

Further, Brookfield is taking a disciplined approach to AI-related investments. Its development projects are backed by long-term contracts that provide strong visibility into returns, while contract structures are designed to minimize technology-related risks through capital recovery and limited cancellation provisions.

Brookfield is also focusing on high-quality, strategically located data centres capable of supporting multiple workloads. Meanwhile, partnerships with large investment-grade technology customers further enhance earnings stability.

The company’s financial results already reflect this momentum. In the first quarter, FFO from Brookfield’s data segment surged 46% year over year to $149 million. The increase was driven by the acquisition of a U.S. bulk fibre network and strong organic growth, including the addition of more than 200 megawatts of operating data centre capacity over the past 12 months.

With capital continuing to flow into AI infrastructure, Brookfield Infrastructure Partners appears well-positioned to benefit from one of the decade’s most powerful growth themes.

Celestica

Celestica (TSX: CLS) is one of the most compelling TSX stocks to capitalize on the booming AI infrastructure market. Surging demand for its data center networking equipment and advanced technology solutions has driven strong financial performance and led to a significant rally in its share price.

Despite its impressive rally, Celestica’s growth story appears far from over. A growing backlog, expanding customer relationships, and a robust order pipeline provide visibility into sustained revenue and earnings growth through 2026 and beyond.

The company’s Connectivity & Cloud Solutions (CCS) segment remains the primary growth engine. In its latest quarter, CCS revenue surged 76% year over year to $3.2 billion, accounting for 80% of total sales. Communications revenue climbed 69%, supported by rising adoption of 800G networking switches among hyperscale cloud customers, while enterprise revenue soared 101% as AI and machine-learning infrastructure deployments accelerated.

Looking ahead, Celestica could benefit from the rollout of next-generation 1.6T networking switches, which are expected to drive future growth. At the same time, the company is expanding its exposure to AI computing platforms, with production volumes poised to increase as customers scale their AI investments.

With solid AI-driven tailwinds, Celestica appears well-positioned to deliver strong growth in the years ahead.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners and Celestica. The Motley Fool has a disclosure policy.

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