12 Best Infrastructure Stocks to Buy According to Hedge Funds

6. Williams Companies Inc. (NYSE:WMB)

Number of Hedge Fund Holders: 37

Williams Companies Inc. (NYSE:WMB) is an energy infrastructure company that operates in the US. It has four segments; Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services. Through these segments, it gathers, processes, and transports natural gas and natural gas liquids (NGLs), and provides related marketing services.

Following a market downturn triggered by the DeepSeek news, this company saw its stock price decline. Despite optimism about AI-driven power demand boosting pipeline stocks, UBS analysts believe that Williams Companies Inc. (NYSE:WMB) has upside potential. They argue that while DeepSeek might be less power-intensive and cheaper, it could accelerate AI adoption. They think that increased efficiency will lower AI product prices, which leads to broader adoption.

The company’s FQ3 2024 results highlight strategic infrastructure investments. Record-adjusted EBITDA was achieved through natural gas transportation expansions and the Gulf Coast Storage acquisition, which led to raised FY24 guidance. These projects are generating substantial returns. The infrastructure-driven performance supports a projected 7%+ EBITDA CAGR through FY25. Key contributors to this growth are contracted pipeline projects, which include Transco’s Regional Energy Access and the large-scale Southeast Supply Enhancement Project (SESE).

Further infrastructure development includes deepwater connections, expansions of existing pipeline systems, and a new solar farm project. Williams Companies Inc. (NYSE:WMB) emphasizes the demand environment for natural gas infrastructure and anticipates growth opportunities tied to increasing energy needs.