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TD Securities Turns Cautious on BCE, Lowers ARPU Estimates

BCE Inc. (NYSE:BCE) is included among the 15 Cheapest Stocks with Highest Dividends.

On April 2, TD Securities downgraded BCE Inc. (NYSE:BCE) to Hold from Buy and set a C$37 price target. Analyst Vince Valentini reduced his average revenue per user (ARPU) growth estimates by 100 basis points across the next seven quarters for three major telecom players.

On March 16, Reuters reported that BCE plans to invest an additional $1.7 billion to build a 300-megawatt AI data center in Saskatchewan, with Cerebras Systems and CoreWeave signed on as tenants. A unit of BCE, Bell Canada, is working with a provincial government to develop and operate what it described as the largest purpose-built AI data center in Canada once completed. The company expects to spend around $1.3 billion in capital expenditures in 2026 to support construction. Funding will come from a mix of debt and available cash.

Cerebras Systems is expected to supply AI chips for large-scale training and computing. CoreWeave will provide AI computing capacity using processors from NVIDIA. Construction is scheduled to begin in the spring. The project will roll out in phases, with the first stage expected to be operational in the first half of 2027. The facility is intended to serve as a regional hub for advanced computing. It is expected to support the expansion of Canada’s AI ecosystem and contribute to economic growth in Saskatchewan.

It will also connect to Bell’s fibre network through a partnership with SaskTel. Both companies will act as go-to-market partners to deliver AI-powered products and services. BCE has also raised its forecast for AI-driven solutions revenue to about $2 billion by 2028, up from a prior estimate of roughly $1.5 billion.

BCE Inc. (NYSE:BCE) is a Canada-based communications company. It provides broadband Internet, wireless, television, media, and business communication services through its Bell brand. The company operates through two segments: Bell Communication and Technology Services and Bell Media.

While we acknowledge the risk and potential of BCE 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 BCE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Best Diversified Dividend Stocks to Buy Right Now and 14 Cheap DRIP Stocks to Buy Now

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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