As global investors remain fixated on tech giants like NVIDIA and Microsoft, strategists at Bank of America are issuing a contrarian call: to fully capture the growth potential of artificial intelligence (AI), investors must complement traditional tech holdings with commodities.
The investment narrative is shifting from virtual “computing power” to physical “electrical power,” with undervalued copper and resource stocks emerging as the underappreciated, hard assets of the AI revolution.
Artificial intelligence is a commodity-intensive story, wrote BofA’s team. They argue that investing in commodity stocks offers a cheaper, more diversified path to tap into the AI boom compared to richly valued mega-cap tech names. As mining stocks begin to outperform major tech benchmarks, BofA sees the sector as a direct beneficiary of the AI-driven demand surge.
Copper, a critical component in power cables, EVs, and renewable energy, is becoming the linchpin of the AI expansion. BloombergNEF forecasts a global copper deficit of 6 million metric tons by 2035, with demand growth increasingly linked to data centers. AI-related copper consumption is set to average 400,000 tons annually over the next decade, peaking at 572,000 tons in 2028. Cumulative data center demand is projected to exceed 4.3 million tons during this period.
While demand accelerates, supply struggles to keep pace. BNEF projects copper supply will reach only 29 million tons by 2035, falling short of projected needs. With copper accounting for nearly 6% of a data center’s capital expenditure, tight demand and constrained supply could drive prices to $13,500 per ton by 2028, according to the bank’s analysis.
We’re in a perfect storm for miners, said Neil Wilson, UK investment strategist at Saxo Markets. Supply is lacking, which is pushing up prices and delivering strong free cash flow for firms to invest or return to shareholders in a bit of a virtuous circle.
The sector’s momentum is clear. By the end of Q3, the world’s top 50 most valuable miners had a combined market capitalization of nearly $1.97 trillion, up almost $700 billion year-to-date in 2025, with most gains accrued in the third quarter. The industry pecking order is being reshuffled. While BHP and Rio Tinto remain giants, the club of miners with market caps exceeding $100 billion has expanded to five, with more candidates on the horizon.
In a symbolic shift, China’s Zijin Mining Group briefly surpassed Rio Tinto in market value this week. With strategic investments in gold, copper, and recently lithium, Zijin’s value surged 61% in Q3 alone, reaching $114.8 billion and making it the fourth miner to cross the $100 billion threshold. Meanwhile, NYSE-listed Southern Copper joined the elite group after a 38% quarterly jump.
Gold and silver miners were among the best performers. Beyond these, rare earths stood out as a stellar sector. Australia’s Lynas Rare Earths saw its shares soar 280% year-to-date, entering the Top 50 at rank 49. MP Materials, which secured a groundbreaking deal with the Pentagon, has skyrocketed nearly 500%. In sympathy, China Northern Rare Earth is up 160% since the start of the year.
Against a backdrop of heightened geopolitical tensions and record demand for materials driven by the global electrification push, access to critical minerals has become paramount, propelling the mining sector back into the spotlight and firmly onto investors’ radars.
