In the latest episode of Ticker Take, we spoke with investor Steve Rowles about why some of the companies helping power the AI revolution are long-established industrial and infrastructure businesses.
Many of these firms date back more than 100 years or have roots stretching that far into the past. Yet today, they are playing a role in one of the biggest technology buildouts in history.
Artificial intelligence is often associated with cutting-edge technology companies. But some of the biggest beneficiaries of the AI boom may actually be businesses that have been around for more than a century.
The reason is simple. AI requires an enormous amount of physical infrastructure.
Data centers must be built. Power generation has to expand. Massive quantities of copper, steel, cooling equipment, and industrial components are needed to keep AI systems running.
In the latest episode of Ticker Take on YouTube, I spoke with investor Steve Rowles about why some of the companies helping power the AI revolution are long-established industrial and infrastructure businesses.
Many of these firms date back more than 100 years or have roots stretching that far into the past. Yet today, they are playing a role in one of the biggest technology buildouts in history.
Hyperscalers including Microsoft, Amazon, Alphabet, and Meta Platforms are expected to spend hundreds of billions of dollars building out AI infrastructure in the coming years. That includes new data centers, specialized power systems, cooling technology, and massive networking capacity.
Those investments ripple across the broader economy.
Utilities are needed to generate electricity. Mining companies supply raw materials such as copper. Industrial firms build the equipment used in construction, automation, and power management.
Rowles says this dynamic creates opportunities in what he calls “old economy” companies that provide the physical backbone of the AI era.
To identify potential investments, he looked for companies with long operating histories, strong analyst support on Wall Street, and expectations for steady dividend growth over the next several years.
Here are 13 stocks he highlighted. As always, this is not financial advice.
GE Vernova focuses on power generation equipment, grid technology, and renewable energy infrastructure. As electricity demand rises from data centers and AI workloads, investors see the company as a key supplier of turbines and power systems needed to expand generation capacity.
Constellation Energy is one of the largest clean energy producers in the United States, with a strong portfolio of nuclear power plants. Nuclear energy’s ability to provide stable, carbon-free electricity has made it increasingly attractive for data center operators seeking reliable power for AI infrastructure.
Freeport-McMoRan is a major global copper producer. Copper is essential for electrical wiring, data transmission, and power distribution, all critical components in the construction of AI data centers and related infrastructure.
Caterpillar manufactures heavy equipment used in construction, mining, and infrastructure projects. The buildout of large-scale data centers and power facilities has increased demand for the kinds of machinery Caterpillar provides.
Eaton specializes in power management equipment that helps distribute and control electricity efficiently. As AI facilities require more complex electrical systems, demand for advanced power infrastructure solutions has increased.
AECOM (ACM)
AECOM provides engineering, design, and construction management services for major infrastructure projects. The expansion of data center campuses and supporting facilities has created new opportunities for firms with large-scale engineering expertise.
Vertiv develops cooling systems, power management technology, and other equipment designed specifically for data centers. With AI servers generating significant heat and power demands, specialized cooling and electrical systems have become essential.
Schneider Electric (SU)
Schneider Electric supplies electrical components, automation systems, and energy management solutions used in industrial and data center environments. Investors often highlight its role in improving energy efficiency across large infrastructure projects.
Honeywell develops automation, aerospace, and industrial technologies. Increasingly, its software and automation tools are used to optimize manufacturing operations, building systems, and industrial processes that support modern infrastructure.
Siemens (SIE)
Siemens operates across industrial automation, energy systems, and digital infrastructure. The company plays a major role in electrification and smart infrastructure projects tied to global technology expansion.
JPMorgan Chase is the largest U.S. bank and has been investing heavily in artificial intelligence to improve risk management, fraud detection, and internal efficiency. Financial institutions are increasingly using AI to streamline operations and enhance decision-making.
Eli Lilly and Company is applying artificial intelligence across drug discovery and clinical research. AI tools can accelerate the identification of new treatments and improve the efficiency of pharmaceutical development.
Johnson & Johnson is incorporating artificial intelligence into areas such as medical imaging, research, and supply chain management. The healthcare giant also benefits from strong cash flow and a long history of dividend growth.
The Ticker Take
The AI boom is often framed as a race among technology companies. But building artificial intelligence systems requires far more than software and chips.
Power plants must generate electricity. Construction firms must build data centers. Mining companies must supply the raw materials used in electrical systems and infrastructure.
That means the ripple effects of AI spending extend well beyond Silicon Valley.
Rowles’ list highlights companies that may not immediately come to mind when investors think about artificial intelligence, but which play a crucial role in enabling the technology’s rapid expansion.
For investors looking beyond the most obvious AI winners, the physical infrastructure supporting the technology could offer another way to participate in the trend.
Jon Erlichman is a BNN Bloomberg contributor and the host of Ticker Take on YouTube.