KMTUY (KMTUY)

The Physicality Of AI: Why The Mining Supercycle Is Just Beginning

AI is not just a software story — it is an intensely physical build-out that requires massive amounts of power, copper, steel, and other critical materials. Data centers, grid expansion, and electrification are colliding with years of chronic underinvestment in mining, creating a structural supply-demand imbalance rather than a normal commodity cycle. Mining supply cannot respond quickly: permitting, environmental hurdles, and long lead times mean new production lags demand by a decade or more. Despite a powerful rally, valuations remain anomalously low, suggesting markets are only beginning to price miners as mission-critical bottleneck assets in the AI era.