The Market Just Woke Up to AI's Commodity Demands.
As I keep emphasizing, the AI revolution is going to trigger a massive bull market in hard assets/ commodities.
While most analysts continue to focus on the tech implications of the AI revolution, the reality is that the build out is going to require truly staggering amounts of materials to complete.
As I’ve noted before, depending on its size, a single AI-related data center can require:
1. One to five tons of lithium
2. 30-100 tons of copper
3. Up to one ton of silicon.
4. 10,000-50,000 tons of concrete
5. 1,000 to 5,000 tons of steel
The markets appear to finally be waking up to this fact. Copper producer Freeport McMoRan (FCX) ERUPTED higher today trading as high as 8% at one point.
The Steel ETF (SLX) has formed a massive inverse head and shoulders pattern. If this breaks out to the upside, buckle up.
The breakout in uranium is showing no signs of slowing down. Many AI companies are opting to fuel their energy needs with nuclear power.
Again, we are at the beginning of a multi-year bull run in hard assets courtesy of AI. The AI buildout is NOT stopping any time soon. If anything, it's intensifying as big tech (Meta, Microsoft, Alphabet, Amazon) competes to be the market leader in what will likely be a "winner takes all" situation for LLMs.
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