AI Boom Ignites New Spending Cycle for Materials Companies
The AI boom has been a dominant force in equity markets throughout 2026. Investors have largely focused on hyper-scalers and their massive investments in AI infrastructure, but this is only part of the story as AI reshapes industries across sectors.
AI is not just a software revolution, it's also an infrastructure revolution. This presents an exciting opportunity for investors, as infrastructure tends to last longer, require more capital, and create more winners than initially anticipated.
Every data centre requires significant resources, including power infrastructure, electrical equipment, cooling systems, and vast quantities of raw materials such as copper, aluminum, and steel. Specialty chemicals are also needed for semiconductor materials, cooling fluids, refrigerants, and other electronic components.
The buildout of data centres will ignite a new spending cycle for copper and copper-exposed businesses, as well as companies that produce construction materials and chemicals enabling next-generation technology. In the first half of 2026, supply constraints drove copper prices higher, while gold prices rose amid geopolitical turbulence. Steel and aluminum also benefited from disruptions caused by issues in the Middle East.