Forget AI Stocks: This Clean-Power Play Is the Real Winner
Key Points
Artificial intelligence is a relatively new technology, and it isn't yet clear who the big winners will be.
The technology sector has gone through innovation phases like this before, and early winners sometimes end up long-term losers.
If you are interested in AI, this globally diversified power company provides the one thing it needs to keep operating.
- 10 stocks we like better than Brookfield Renewable ›
If you are old enough, you remember a time before the internet. And you also remember Yahoo! and America Online being two of the most dominant internet companies early in the internet's development. The stocks were hot way back then, but today, both have basically flamed out and been swallowed up by other companies. Other internet companies became more dominant.
This isn't unusual in the tech sector, and investors piling into artificial intelligence (AI) stocks should keep that in mind. Sure, you could make a big bet on an AI stock that you think has winning tech, like a high-powered chip or a specialized application, or you could go with a picks-and-shovels play like Brookfield Renewable (NYSE: BEP)(NYSE: BEPC). Here's why this clean energy company could be the better bet.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
AI Investors are being driven by emotion
Right now, artificial intelligence is a hot sector. Too many investors see it as a way to get rich quickly. And that has had pretty predictable consequences. For example, SoundHound (NASDAQ: SOUN) provides AI voice services. That's exciting, but probably not unique enough to build a business around. Still, its stock skyrocketed as investors jumped on the next hot thing. The shares have since plunged back to earth, down 70% from their 2024 peak.
The same could be happening now with Western Digital (NASDAQ: WDC), a maker of data storage devices. Huge demand from the AI build got investors excited about the stock, but that excitement has begun to fade. The stock has fallen roughly 40% from its recent highs. That's actually the second huge drawdown over the last three years. Even AI poster-child Nvidia (NASDAQ: NVDA) has proven to be a highly volatile stock.
NVDA data by YCharts
If you can't stand the AI volatility, go with a picks-and-shovels play
But, there's one thing that AI can't live without: electricity. After all, AI is really just a fancy computer program. Electricity demand is so high right now that there's been a step change. Between 2005 and 2025, U.S. electricity demand increased by 10%. Between 2025 and 2045, U.S. demand is projected to increase 60%. AI is playing a major role in the changing dynamics of electricity. Globally, however, there's also a shift toward cleaner power sources and increasing demand from developing nations. A great way to benefit from AI, clean energy, and broader economic growth is Brookfield Renewable.
Brookfield Renewable owns a globally diversified portfolio of clean energy assets, with exposure to North America, South America, Europe, and Asia. Its power portfolio includes solar, wind, hydroelectric, and storage. It also owns a stake in Westinghouse, a key global supplier to the nuclear power industry. It is a one-stop shop for clean energy exposure, and it is already working with AI-focused companies like Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG) to help them build out their AI businesses.
The best part of the story, however, is likely to be Brookfield Renewable's dividend. The yield is currently around 5% for the partnership share class and 4.9% for the corporate share class. The quarterly disbursement has been increased at a roughly 5% annualzed pace over the past decade. Add a 5% dividend to a 5% dividend growth rate, and you get roughly 10%, which is about the return most investors expect from the broader market.
The future is bright for Brookfield Renewable
AI is just part of the electricity story that supports Brookfield Renewable's long-term growth opportunity. Which is actually more exciting than if AI were the only thing this clean energy company had going for it. If you are a dividend investor looking to benefit from AI, forget trying to pick a winner in the volatile AI sector and dig into high-yield Brookfield Renewable. It is already benefiting from AI's intense demand for power, but there's much more opportunity than that.
Should you buy stock in Brookfield Renewable right now?
Before you buy stock in Brookfield Renewable, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Brookfield Renewable wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 6, 2026.
Reuben Gregg Brewer has positions in Brookfield Renewable Partners. The Motley Fool has positions in and recommends Alphabet, Microsoft, Nvidia, SoundHound AI, and Western Digital. The Motley Fool recommends Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
Recommended Articles
