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Alternative Market Briefing

Should managers load up on AI-related holdings?

Tuesday, August 12, 2025

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By Opalesque Geneva:

"We heard last week that if you are really worried / bearish about the state of affairs in society and/or the global economy that the only thing to do is load up on AI-related holdings," commented our contributor in the latest Opalesque Technical Research Briefing. "Literally everything else will go to hell - but artificial intelligence (AI) stocks will go higher. First, YIKES!! Second, we should all listen to Chris Rock on this one," (who once said, "You can drive a car with your feet if you want to… that don't make it a good idea.")

But what if it is a good idea to load up on AI-related holdings. There is a building momentum in metals at the moment (despite copper's recent single-day drop, the largest in history), according to Auspice Capital, a Canadian quantitative fund manager, in a recent monthly update seen by Opalesque.

"Electrification, AI, and the rapid data center buildout are creating unprecedented demand for energy and materials. As former Google CEO Eric Schmidt told Congress in April, "We need the energy in all forms, renewable, non-renewable, whatever," noting that 99% of electricity will ultimately power super-intelligent AI. These structural forces are beginning to show up in portfolios, with notable strength in iron ore, pla......................

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