AI is Going to Generate a MASSIVE Boom in Hard Assets
Graham Summers, MBA

Artificial Intelligence (AI) is going to ignite a boom in hard assets.

As I’ve laid out in the last few articles, the AI revolution is moving into its next phase: physical AI. This is the phase in which AI software is integrated with physical hardware (robots, appliances, automobiles, etc.).

Some recent developments:

1. Tesla (TSLA) is preparing to launch its robotaxis: Full-Self Driving (FSD) cars that can transport a passenger anywhere, even through pedestrian-clogged cities without assistance.
2. Meta (META) has launched a new AI model, V-JEPA 2 designed to interact with the physical world. The model is capable of understanding physical reality to the point of acknowledging that items out of sight continue to exist and move. META will be integrating this into countless technologies.
3. Nvidia (NVDA) introduced a physical-AI software update, Isaac GR00T-Dreams, that will be used to synthesize motion data for robotics. Agility Robotics, Boston Dynamics, Fourier, Foxlink, Galbot, Mentee Robotics, NEURA Robotics, General Robotics, Skild AI and XPENG Robotics are all already using this new platform.

Thus far we’ve focused on tech aspect of these developments: namely the tech companies that are investing in and developing this technology. However, there is another component to the physical AI revolution that investors need to know about.

Hard assets and energy

Robots, cars, appliances, etc. all require a tremendous amount of materials and energy for development and manufacturing. The International Energy Agency (IEA) forecasts a 160% rise in electricity demand by 2030 driven by AI-related items. AI data centers alone are expected to account for 21% of all global energy demand by 2030… and that’s not even accounting for the impact of physical AI!

The AI revolution will also create MASSIVE demand for copper, aluminum, tin, steel, silver and slew of other natural resources. A single data center requires 5,000 to 10,000 metric tons of copper for cabling and equipment. An AI-controlled robot can require anywhere from 50-100lbs of copper… and experts are anticipating MILLIONS of robots to hit market by 2030. Indeed, by some estimates, AI could increase copper demand by 15%-20% annually through 2030.

And on and on.

Put simply, the AI story is not just about advanced tech, it’s also about commodities and hard assets. This is going to ignite a boom that few investors understand: true fortunes created not just in software and robots but ALSO in mining and production.

The markets know this too. Take a look at the extremely bullish formation the commodities index is forming. 

How about uranium? Many AI companies are opting for to meet their energy needs with nuclear fuel. Does this chart look bearish to you?

Put simply, investors need to focus on more than just the tech-aspect of AI. The materials demands are going to be massive. In this sense the AI revolution will drive hundreds of billions if not trillions of dollars in capital allocation both on the tech side… and the hard assets demand side. 

Smart investors are carefully allocating capital to both trends in anticipation of this.

On that note, we just published a new special investment report The AI Plays Your Broker Doesn’t Know About thatdetails 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...

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Best Regards

Graham Summers, MBA

Chief Market Strategist

Phoenix Capital Research

Graham Summers, MBA is Chief Market Strategist for Phoenix Capital Research, an investment research firm based in the Washington DC-metro area.

Graham’s sterling track record and history of major predictions has made him one of the most sought after investment analysts in the world. He is one of only 20 experts in the world who are on record as predicting the 2008 Crash. Since then he has accurately predicted the EU Meltdown of 2011-2012 (locking in 73 consecutive winners during this period), Gold’s rise to $2,000 per ounce (and subsequent collapse), China’s market crash and more.

His views on business and investing has been featured in RollingStone magazine, The New York Post, CNN Money, Crain’s New York Business, the National Review, Thomson Reuters, the Fox Business, and more. His commentary is regularly featured on ZeroHedge and other online investment outlets.

 

 

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