Brookfield Infrastructure Partners (NYSE:BIP) is back in focus after announcing a $1 billion capital recycling program aimed at shifting more of its portfolio toward AI data centers and U.S. fiber infrastructure.

At a share price of $37.57, Brookfield Infrastructure Partners has a year to date share price return of 9.53%, while its 1 year total shareholder return of 21.09% points to momentum that has built over a longer period than the recent 3.02% 90 day share price gain.

If the AI infrastructure angle is what caught your eye here, it could be worth widening the lens and reviewing a curated set of 49 AI infrastructure stocks

So with Brookfield Infrastructure Partners trading at $37.57 and showing strong recent total returns, is the market still underestimating its push into AI data centers and fiber, or is the current price already reflecting expectations for future growth?

Most Popular Narrative: 15% Undervalued

Brookfield Infrastructure Partners is trading at $37.57 against a most widely followed fair value estimate of $44.18. This frames the AI data center and fiber pivot in valuation terms rather than just headlines.

The exponential growth in AI-driven data consumption and digital infrastructure requirements, especially in the U.S. and Europe, is fueling record demand for data centers, fiber networks, and digital connectivity; BIP's ongoing and planned investments in these fast-growing, high-utilization assets are expected to drive significant revenue and earnings growth.

Want to see what sits underneath that view on Brookfield Infrastructure Partners, and how earnings, margins and future multiples intersect with that AI and energy build out? The most followed narrative spells out a detailed path for profitability, cash flows and valuation that goes well beyond recent share price moves.

Result: Fair Value of $44.18 (UNDERVALUED)

However, Brookfield Infrastructure Partners still faces meaningful risks, including potential overpayment in competitive acquisitions and higher refinancing costs if borrowing conditions tighten, which could challenge the view that the stock is undervalued.

Another View: Brookfield Infrastructure Partners Through the Earnings Lens

The DCF style fair value of $44.18 suggests Brookfield Infrastructure Partners is undervalued, but its current P/E of 56.6x tells a more cautious story. That multiple is roughly three times both the global Integrated Utilities average of 18.5x and the 22.5x peer average, and sits almost exactly in line with the 56.8x fair ratio. In plain terms, the stock already trades at a rich earnings multiple. How comfortable are you with paying a premium that assumes the forecast profit growth actually arrives?

Next Steps

Given the mix of optimism and concern running through this Brookfield Infrastructure Partners story, it makes sense to move quickly, test the assumptions against the data, and decide where you stand by reviewing the 3 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.