Artificial intelligence stocks fell sharply on Tuesday, driven by a selling spree across AI chip companies. This decline follows a significant downturn from late June, exacerbating concerns over inflated market valuations in the AI sector. Investors are reportedly looking for stable market exposure as they head into August amidst a generally positive earnings outlook across multiple sectors.
One potential investment highlighted is Brookfield Infrastructure Partners (BIP), a Bermuda-based limited partnership focused on utilities and transport. BIP aims to benefit from a projected 100% increase in U.S. electricity demand by 2050 due to the AI data center boom. BIP currently offers a ~4.5% dividend yield, exceeding the industry average of 4%, and is rated Zacks Rank #2 (Buy), with expectations of 9% adjusted earnings growth in 2026. The stock has increased by ~275% over the past 15 years, outperforming broader market indices, and is trading at a discount of nearly 40% compared to its sector average.
BIP is due to report its Q2 2026 earnings results this Thursday. Investors are encouraged to consider adding it to their portfolios for its value, dividend yield, and potential upside driven by AI-related infrastructure demands.
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