It’s hard to deny the far-reaching potential of artificial intelligence in our modern world – a disruptive force that holds both immense promise and undeniable profit potential. Analysts at Bank of America suggest that by 2030, AI could inject a jaw-dropping $15.7 trillion into the global economy, a figure that boggles the mind.
While much attention has rightfully been paid to the wonders of AI technology itself and the tangible benefits it offers to society, the role of certain crucial elements behind the scenes cannot be overlooked.
The Backbone: Hardware
At the forefront of this technological revolution is Nvidia, an industry giant that specializes in creating cutting-edge chips vital for powering AI servers. Its remarkable success – exemplified by a staggering 260% surge in stock price over the past year – showcases the red-hot demand for advanced AI hardware.
Nvidia, along with key players like Taiwan Semiconductor, Advanced Micro Devices, and others positioned in the AI supply chain, are akin to merchants peddling essential tools to gold miners during a frenzied gold rush.
Copper’s Crucial Contribution
Delving further into the foundation of AI infrastructure reveals the indispensable role played by copper, a highly conductive metal that facilitates interconnections within integrated circuits – akin to the delicate neural pathways in the human brain. In addition, copper is vital for transferring power to these circuits, making it a linchpin in the technological ecosystem.
Beyond the confines of computer chips, copper’s significance extends to the broader electrical grid, powering turbines, batteries, and transmission components that form the lifeblood of modern civilization. Without copper, the machinery of today’s interconnected world would grind to a halt.
From Scarcity to Opportunity
The surge in demand for copper driven by global trends like AI advancement, electric vehicle proliferation, and sustainable energy initiatives is propelling the need for this precious metal to unprecedented heights. Projections indicate a surge in global demand to 36.6 million metric tons by 2031, a sharp uptick from the current 25 million metric tonnes, while global supply faces a shortfall of 6.5 million metric tonnes by the same year.
Recent developments underscore the growing challenges in copper supply chain, with leading Chinese smelters forced to curtail production due to raw material shortages. This tightening of the copper market presents compelling opportunities for astute investors seeking to capitalize on this burgeoning demand.
Recognizing these seismic shifts, Ivana Delevska and the team at Spear Invest have strategically positioned their Spear Alpha ETF to encompass the entire AI value chain, embracing both downstream innovators like ZScaler and hardware manufacturers like Nvidia, along with upstream players involved in copper mining and processing such as Freeport-McMoRan and Teck Resources.
This holistic approach underscores a profound understanding of the intricate web of technologies driving modern progress. The results speak for themselves, with SPRX witnessing a robust 70% surge in value over the past year, a testament to the untapped potential inherent in copper’s pivotal role in the AI ecosystem.