Forget Tech Stocks: The Utility Play That Could Outperform Nvidia

By Matt DiLallo – Feb 28, 2026 at 7:00AM ESTKey PointsNvidia's chips can't run without power. Brookfield Renewable is a key electricity supplier to large tech companies. It should grow briskly in the coming years as power demand surges. Nvidia's (NVDA 4.43%) stock is up over 700% in the last three years. That has absolutely crushed the S&P 500, which has gained about 70%. The semiconductor giant has cashed in on the AI boom as technology companies can't seem to get enough of its chips. While tech companies need Nvidia's chips to support their AI ambitions, those semiconductors can't run without power. That plays right into Brookfield Renewable's (BEPC 2.10%)(BEP 0.71%) strengths. The leading renewable energy company could outperform an investment in Nvidia in the coming years as power demand surges and chip competition intensifies. Image source: Nvidia. The power player Brookfield Renewable operates a globally diversified clean power platform. It sells the electricity it produces under long-term power purchase agreements (PPAs) with utilities and large corporations. Brookfield's global scale, diversification, and expertise have made it the key power supplier for leading AI companies. For example, in 2024, Brookfield signed the largest-ever corporate PPA with Microsoft at over 10.5 gigawatts (GW) of renewable power capacity. That deal was nearly eight times larger than the previous corporate PPA record. Brookfield will deliver this capacity between 2026 and 2030 across the U.S. and Europe. The partners have the potential to expand the scope of their agreement beyond those regions and to carbon-free generation technologies other than wind and solar energy. ExpandNYSE: BEPCBrookfield RenewableToday's Change(-2.10%) $-0.92Current Price$42.73Key Data PointsMarket Cap$7.7BDay's Range$42.10 - $44.3052wk Range$23.73 - $45.18Volume1.2MAvg Vol949KGross Margin26.41%Dividend Yield4.41% Brookfield also inked a deal with Google last year to provide it with up to 3 GW of hydropower, the largest-ever corporate hydroelectric agreement. The first two PPAs under that partnership cover 670 megawatts from two hydroelectric facilities in PA, representing over $3 billion of revenue. Brookfield is also a part-owner of Westinghouse. The nuclear energy technology company recently formed a strategic partnership with the U.S. government to accelerate the deployment of nuclear power and AI in the country. As part of the deal, the U.S. will build at least $80 billion of reactors using Westinghouse's technology. A compelling value proposition Brookfield Renewable has multiple growth catalysts. Its existing PPAs deliver steadily growing cash flow supported by inflation-linked rate structures. Meanwhile, it's signing higher-rate PPAs with customers like Google as legacy agreements expire. Additionally, Brookfield is building a massive amount of new renewable energy capacity for customers such as Microsoft. On top of that, the company routinely acquires expandable renewable energy platforms to accelerate growth. It will also benefit from its investment in Westinghouse. These catalysts power Brookfield's view that it can grow its funds from operations (FFO) per share at a more than 10% annual rate through at least 2031. Wall Street analysts expect the company to grow its FFO per share by nearly 20% annually over the next three years, driven by its deals with Microsoft and Google. Despite that brisk growth, Brookfield currently trades at about 16 times FFO, well below its peak of over 30 times FFO in 2021. Additionally, the company offers a 3.7%-yielding dividend, which it aims to grow by more than 5% annually. High-powered total return potential Brookfield Renewable expects to grow briskly in the coming years, giving it plenty of power to continue increasing its high-yielding dividend. The company also trades at an attractive valuation, leaving ample room for multiple expansion. Add it all up, and Brookfield could generate high-powered total returns in the coming years, positioning it to potentially outperform Nvidia if competitors begin to eat away at its AI chip dominance. Read NextFeb 16, 2026 •By Catie HoganWhat Is One of the Best Energy Stocks to Own for the Next 10 Years?Feb 10, 2026 •By Matt DiLalloPrediction: Buying Brookfield Renewable Today Could Set You Up for LifeFeb 3, 2026 •By Matt DiLalloHere's How Many Shares of Brookfield Renewable You'd Need for $1,000 in Yearly DividendsFeb 1, 2026 •By Matt DiLalloThis Nearly 4%-Yielding Energy Stock Delivered Powerful Growth in 2025 With More to Come in 2026 and BeyondJan 31, 2026 •By Reuben Gregg BrewerBrookfield Renewable Is Building the Real Backbone of the AI RevolutionJan 28, 2026 •By Matt DiLalloForget Tech Stocks: The Energy Stock With Monster AI Tailwinds for 2026About the AuthorMatt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.TMFmd19X@MatthewDiLalloStocks MentionedBrookfield RenewableNYSE: BEPC$42.73(-2.10%)-$0.92NvidiaNASDAQ: NVDA$176.69(-4.43%)-$8.20MicrosoftNASDAQ: MSFT$393.00(-2.17%)-$8.72AlphabetNASDAQ: GOOGL$312.00(+1.50%)+$4.62Brookfield Renewable PartnersNYSE: BEP$31.78(-0.71%)-$0.23AlphabetNASDAQ: GOOG$311.43(+1.39%)+$4.28*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.