10 Best Infrastructure Stocks To Buy Now

1. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders In Q2 2024: 73

NextEra Energy, Inc. (NYSE:NEE) is a clean energy company that generates 33GW of power through solar, nuclear, wind, and other sources. Over the past year, its shares are up by a modest 23.77% which is unsurprising. Firms like NextEra Energy, Inc. (NYSE:NEE) depend on low interest rates to finance their clean power generation projects, and higher rates led the firm to cut its distribution per unit growth to 5% to 8% in September 2023. This meant that investors jumped ship as they sought other avenues for return. Additionally, just like Constellation Energy, NextEra Energy, Inc. (NYSE:NEE)’s clean energy model is attractive to the AI industry as it requires massive power but with a low carbon footprint. This has led to tailwinds this year, with the shares having gained 37.31% year to date. Looking ahead, rate cuts should prove beneficial, and NextEra Energy, Inc. (NYSE:NEE) also benefits from strong cost management at its Florida subsidiary which has allowed the firm to keep bills 40% below the national average.

During the Q2 2024 earnings call, NextEra Energy, Inc. (NYSE:NEE)’s management shared details for a bit data center deal:

“A great example is our collaboration with Entergy, where we are targeting to build 4.5 gigawatts of renewable storage solutions to help them meet both their new increased load demand and energy transition goals. And we couldn’t be more excited to work with a long-term established customer in order to help them execute on these goals.

Another example is our collaboration with Google. As John said earlier, this quarter’s backlog addition include 860 megawatts signed with Google to support their data center needs. That brings our total renewables portfolio with technology and data center customers, including assets in operation and in backlog to 7 gigawatts.”

NEE tops our list of hedge funds’ best infrastructure stocks. But our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NEE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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