3 Stocks Set to Outperform as Google's AI Breakthroughs Reshape the Infrastructure Landscape

The AI revolution is no longer a distant promise-it's a present-day reality, and Google is at the forefront. As the tech giant accelerates its AI ambitions, its infrastructure investments are creating a ripple effect across the semiconductor, energy, and data center industries. For investors, this presents a unique opportunity to identify the hidden infrastructure winners in the AI gold rush. Below, we analyze three stocks poised to outperform as Google's AI breakthroughs reshape the global infrastructure landscape.

1. Broadcom (AVGO): The Semiconductor Powerhouse Fueling Google's AI Ambitions

Google's custom-designed Tensor Processing Units (TPUs) are the backbone of its AI infrastructure, and Broadcom (AVGO) is the sole supplier of these specialized AI ASICs. Since 2016, the partnership has evolved into a critical pillar of Google's cloud and AI strategy. The latest seventh-generation TPU, Ironwood, is manufactured by Broadcom, enabling Google to optimize AI workloads for its TensorFlow framework and scale compute power for partners like Anthropic and Meta according to partnership details.

Analysts project that TPUs will account for an increasing share of Google Cloud's infrastructure, driven by surging demand for AI compute. With Google's $40 billion Texas data center expansion and a €5.5 billion investment in Germany, Broadcom's role in supplying these chips is expected to grow exponentially. As Bloomberg reports, "Broadcom's vertical integration in AI ASICs positions it as a key beneficiary of Google's long-term infrastructure bets." Given the projected $1.5 trillion global AI market by 2030, Broadcom's stock is well-positioned to outperform as it capitalizes on this demand.

2. Engie (ENGIE): Powering Google's Carbon-Free AI Future

Google's commitment to 24/7 carbon-free energy by 2030 has made renewable energy partnerships a cornerstone of its AI infrastructure strategy. In Germany, the company has partnered with Engie to develop onshore wind, solar, and battery storage projects, including the Borkum Riffgrund 3 offshore wind farm. This collaboration ensures that Google's new data center in Dietzenbach and the expanded Hanau facility operate with zero-carbon energy as detailed in Google's announcement.

Engie's role extends beyond energy generation. The company is also involved in Google's heat recovery project in Dietzenbach, where excess data center heat is repurposed to warm 2,000 local households. According to Reuters, "Engie's expertise in decarbonization aligns perfectly with Google's sustainability goals, making it a strategic partner in the AI infrastructure race." With Google's global data center energy consumption projected to rise by 40% by 2027, Engie's renewable energy solutions are critical to maintaining operational efficiency and environmental compliance.

3. Intersect Power: Scaling Clean Energy for Google's AI Expansion

While Engie focuses on localized energy solutions, Intersect Power is emerging as a key player in large-scale renewable energy infrastructure. Google has partnered with Intersect Power and TPG Rise Climate to launch a $20 billion initiative aimed at co-located solar and battery storage projects across the U.S. As reported by the Renewable Energy Institute, these projects are designed to power multiple data centers simultaneously, reducing transmission costs and accelerating deployment timelines.

The first phase of this initiative is expected to be operational by 2026, with full completion by 2027. According to the Renewable Energy Institute, "Intersect Power's ability to deliver gigawatt-scale energy solutions positions it as a hidden gem in the AI infrastructure ecosystem." With Google's Texas data center expansion requiring a dedicated solar and battery storage plant, Intersect Power's role in enabling scalable, sustainable energy infrastructure is unmatched.

Conclusion: Capturing the AI Infrastructure Megatrend

Google's AI breakthroughs are not just transforming technology-they're redefining the infrastructure landscape. From Broadcom's cutting-edge semiconductors to Engie's carbon-free energy solutions and Intersect Power's scalable renewable projects, these three stocks represent the infrastructure pillars of the AI revolution. As demand for AI compute, data center efficiency, and sustainable energy surges, investors who align with these companies will be well-positioned to capitalize on the next decade of growth.