As I keep emphasizing, the Artificial Intelligence (AI) revolution isn’t just about tech, it’s also about hard assets.
As AI transitions to real world applications with physical AI (robotics, appliances, etc.) demand for commodities/ energy/ hard assets is going to grow exponentially. Every aspect of the AI revolution requires natural resources ranging from copper, cobalt, lithium, natural gas, uranium, and so on.
Consider that depending on its size, a single AI-related data center can require:
- One to five tons of lithium
- 30-100 tons of copper
- Up to 1 ton of silicon.
- 10,000-50,000 tons of concrete
- 1,000 to 5,000 tons of steel
And so on.
Bear in mind, we’re just talking about data centers here. We’re not even considering the natural resources requirements for robots, electric vehicles, appliances and more.
Some points for consideration:
A single AI-powered robot can require:
- 25+ pounds of silicon
- 2.5-10 pounds of copper
- 25-125 pounds of steel or aluminum
- 12-60 pounds of lithium, cobalt and nickel (if it runs on EV batteries)
- 5-25 pounds of plastic
And bear in mind, some experts are anticipating hundreds of thousands if not millions of robots to be manufactured by 2030!
So, if you think AI is just about tech, think again. The AI revolution will ignite opportunities in natural resources as well.
Take a look at some charts to see what I mean.
Copper is in the process of completing a 15-year Cup and Handle formation. There is NOTHING bearish about this chart.
Steel stocks have broken out of a massive consolidation pattern to new highs. Again, there is nothing bearish about this chart.
Uranium is breaking out to the upside after years of consolidation. Here again, this is an extremely bullish chart (many AI companies are opting to supply their energy needs with nuclear power).
This is yet another illustration of our dominant theme: that it is NOT too late to find opportunities to profit from AI-related technological breakthroughs. We are still very much in the adoption phase of AI for many sectors of the economy.
This is great news for investors because it means there’s still a lot of money to be made from this trend. So, if you missed out on the first wave of the AI revolution (the introduction of LLMs) don’t worry, there’s still PLENTY of opportunities to leverage the impact of AI towards profitable investing.
On that note, we just published a new special investment report The AI Plays Your Broker Doesn’t Know About that details three unique investments designed to profit from the revolution in physical AI. Best of all, Wall Street has little to no idea these companies even exist, let alone their potential.
We are making just 99 copies available to the general public. To pick up yours…
Best Regards
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
