Brookfield Infrastructure Partners L.P. (BIP): A Bull Case Theory

We came across a bullish thesis on Brookfield Infrastructure Partners L.P. on Beat the TSX (BTSX-20)’s Substack by Beat the TSX-27 Strategy.. In this article, we will summarize the bulls’ thesis on BIP. Brookfield Infrastructure Partners L.P.'s share was trading at $37.03 as of February 5th. BIP’s trailing and forward P/E were 40.86 and 156.25 respectively according to Yahoo Finance.

Brookfield Infrastructure Partners L.P. engages in the utilities, transport, midstream, and data businesses. BIP delivered a steady Q4/25 performance, reporting FFO of $0.87 per unit and raising its annual distribution by 6% to $1.82, continuing a 17-year streak of increases. More importantly, management signaled that 2026 will be an inflection year, with FFO growth expected to exceed 10%, driven by new investments coming online and a growing backlog of data-related capital projects.

Transaction activity remains robust, highlighted by the first Bloom Energy project delivering 55MW of behind-the-meter power to a U.S. data center, and additional hyperscaler projects now secured, bringing total AI and data center exposure to approximately 230MW. Capital recycling is progressing as intended, exemplified by a $150 million Brazilian electricity transmission sale that generated a 45% IRR, alongside monetization of stabilized North American data centers to fund further development. BIP’s approach to AI and data infrastructure emphasizes disciplined growth, with long-term, inflation-protected contracts, investment-grade counterparties, prime locations, and capital structures aligned with contract duration, allowing upside capture without excessive risk.

The company maintains $2.7 billion in corporate liquidity, and its current yield of 5% positions it among the top TSX60 dividend payers, while valuation remains below its long-term mid-range despite recent 52-week highs. Investors benefit from steady distributions, inflation protection, and disciplined growth, making BIP an attractive core infrastructure compounder.

With accelerating earnings, strong transaction momentum, and active capital recycling, the company is well-positioned to deliver both reliable income and capital appreciation, offering a compelling risk/reward profile for long-term holders while maintaining a clear pathway for growth in AI and data center infrastructure.

Previously, we covered a bullish thesis on Quanta Services, Inc. (PWR) by Bulls On Parade in May 2025, highlighting its leadership in AI-driven infrastructure, M&A growth, and disciplined capital allocation. PWR’s stock price has appreciated by 63.39% since our coverage. Beat the TSX-27 shares a similar approach but emphasizes Brookfield Infrastructure Partners’ AI and data center exposure, steady FFO growth, and inflation-protected cash flows.

Brookfield Infrastructure Partners L.P. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held BIP at the end of the third quarter which was 6 in the previous quarter. While we acknowledge the risk and potential of BIP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BIP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.