Artificial intelligence stands poised to be a game-changer, a technological wonder that promises not just progress but also prosperity. Analysts predict a staggering boost of up to $15.7 trillion in global economic yield by 2030, courtesy of AI, heralding a dawn of unprecedented innovations and wealth creation.
While much spotlight shines on the revolutionary potential of AI in daily human life, beneath the surface lies a fundamental shift within the heart of the industry – where the tech is born. Innovations in hardware, especially from powerhouses like Nvidia, are powering the AI wave to unrivaled heights, their stocks skyrocketing like a rocket bound for the stars, up over 260% from this time last year.
The Crucial Role of Copper
Delving deeper into the technological marvel that is AI, we find the unsung hero – copper. Behind the curtain of computer chips and intricate circuitry, copper plays a vital role akin to axons in a brain, facilitating connectivity and power transmission essential for seamless functionality. It’s the unsung hero, quietly enabling the symphony of technology to harmonize effortlessly.
Beyond the microcosm of chips, the macroscopic world hinges on copper for sustenance. From turbines transforming mechanical vigor into electric life force, to batteries storing that very essence, and wires transmitting its prowess across grids – copper underpins the modern world, a silent yet indispensable architect of our digital civilization.
Rising Demand, Diminishing Supply
The electric hum of AI, the electric fervor of EVs, the electric pulse of decarbonization – all these global megatrends electrify the hunger for copper. Projections foresee a surge in demand to reach 36.6 million metric tons by 2031, a staggering rise from the current appetite of 25 million metric tonnes. However, concerns loom large as global supply threatens to lag behind by 6.5 million metric tonnes by 2031, painting a picture of scarcity in the horizon.
The prowess of global copper extraction and recycling wanes in comparison to the swelling demand. Recent production cuts by Chinese copper smelters due to raw material shortages underscore the tightening grip of supply constraints, casting a shadow on the flow of precious copper and raising alarm bells across the industry.
All Encompassing Investment Strategy
Ivana Delevska, steering the ship at Spear Invest, champions a vision where threads of investment weave seamlessly through the AI tapestry. Spear Alpha ETF, the flagship fund under her wing, mirrors this vision – a mosaic of holdings across the AI spectrum, from tech end-users like ZScaler, to hardware behemoths like Nvidia, and all the way upstream to copper miners like Freeport-McMoRan and Teck Resources.
This holistic approach, bridging technological marvels and industrial might, reflects a nuanced understanding of the multifaceted AI landscape. The fund’s success, with an impressive 70% surge since last year, marks a testament to the foresight in adopting a comprehensive investment philosophy that transcends industry silos and fosters prosperity at every touchpoint.
