Get Ready to Profit from “Made in America” AI Arms Race

The AI revolution is not just about software.

Large language models (LLMs) are what users interact with. But the real value lies upstream of user interfaces or apps. That is where investors should look.

The backbone of large-scale AI is physical. It depends on materials and infrastructure.

Those who supply the tools and raw inputs will benefit most.

Think of it as a modern gold rush. The pick-and-shovel makers win regardless of which exact model is considered the flavor of the day. Leading nations and private companies compete for access to these materials.

They know control of supply chains creates long-term wealth. This can reshape global power distribution.

Investors who act early may capture significant gains if they position their portfolios correctly.

Core Metals

AI is often framed as a software story. That’s a mistake, since the physical backbone of large-scale AI is unmistakably made of real stuff.

Hyperscale model training, sprawling data centers, and global electrification create a durable, metal-intensive demand shock.

Three vital metals will be leading the AI parade due to their unique qualities.

1. Copper for power and connectivity.
2. Uranium for reliable low-carbon baseload power generation.
3. Silver for high-performance electronics.

Countries that control these supply chains will have an edge.

That makes mining and processing them strategic priorities.

US vs. China

West and East have long been competing in the commodity race.

China’s political regime prioritized resource processing. The country went from a solely agricultural nation to a leading hub for metal processing with high-tech applications.

• While the country has limited mining activity, it has developed a leading copper-processing hub. Nearly 50% of the world’s copper is processed in China. With such control, the country has no problem building up data centers and related infrastructure.
• For energy, China plans to nearly quadruple its nuclear fleet. Luckily, the leading uranium producer, Kazakhstan, is nearby.
• For silver, China is the second largest producer. No challenges in routing the supply to high-tech components.

The US, on the other hand, is less prepared for the AI race.

The ongoing political instability and green agenda pretty much sterilized its mining sector.

• Copper mining peaked in 2016, then entered a steady decline. It’s estimated that last year, the US produced only one million tonnes of the metal, a 30% drop since 2016. The current net import reliance stands at 57%. In other words, the US needs to more than double its copper output to cover its internal demand.
• Uranium production in the US went from 4.9 million pounds in 2014 to nearly nothing in 2020-2021. It has begun to recover but remains well below historical levels. The country has to import around 95% of its uranium to keep its power plants operating.
• For one metal, though, the picture in the US hasn’t changed a lot. It has never dominated the silver market and is unlikely to do so. Its net import reliance stands at 77%.

The years, if not decades, of underinvestment and hostile government policies put the US in a tight spot. The country has technologies, ambitions, and a workforce to win the AI race (or at least try). However, it won’t happen without a domestic supply of the strategic materials listed above.

The White House could turn to its allies to secure a supply of the vital metals. But so far, the country's trade policies show that it has no interest in doing so. Instead, it will likely focus on rebuilding the domestic resource sector.

That’s where investors should pay close attention.

1. US-based projects that can begin production on relatively short notice. No surprise the state introduced the FAST-41 permitting process. Its aim is to streamline the development of a strategic plan for the country’s critical mineral projects.
2. Expansion of the existing operations would be the next low-hanging fruit. Boosting production at the existing mines is often easier than building new ones.
3. External help. The policymakers are already wrestling with Trump’s tariffs, calling some of them unconstitutional. If confirmed, it may open a door for Canadian, Mexican, and other producers seeking business with the US.

Takeaway

It’s still not too late to invest in the AI trend.

China is in a better position right now. The US is catching up, feeling more vulnerable and in need of fundamental changes.

We believe that sectors behind the AI build-up are still positioned to deliver superior gains. However, investors need to choose the commodity and the project's location wisely.

Not all the miners will deliver equal results. Some may become losers without state support. That’s the risk investors should bear in mind and do their own due diligence.

Those who need extra help may seek advice from veterans in the resource sector.

At The Canadian Mining Report, we prefer those with a strong track record and unbiased opinions on the mining companies.

Robert Bruggeman, CFA, is an expert in the mining space. Until recently, Rob served as chairman of AbraSilver, where he created massive value for the company’s shareholders. The company grew from about $5 million to a $2 billion market cap.

After stepping down from his leadership role, Rob created a community seeking gains in the resource sector. He is helping investors to outperform the rest of the sector with hand-picked recommendations, NOT sponsored by the companies.

You can find more about Rob’s The Wealthy Miner service here:

https://www.thewealthyminer.com/elite-investment-club