Hello, Reader.
Hearing that there’s “no end in sight” to the current U.S.-Iran war might not comfort investors – but that’s exactly how one Iranian official recently described it to CNN.
Markets have already felt the turbulence, and aluminum is no exception.
The metal surged almost 10% last week, hitting a three-year high as the conflict disrupted aluminum shipments from the Persian Gulf. The region supplies roughly 9% of global aluminum, so prices spiked quickly on supply fears – before an even more recent selloff brought them back down.
If the war continues to create a global aluminum shortage, mining companies could stand to benefit. Now, I am certainly not celebrating conflict in the Middle East; but we can only invest in the world as it is, not in the rose-tinted world we might prefer.
In the real world, tighter supply usually means higher prices.
And beyond the escalating conflict, aluminum demand has increased thanks to AI’s need for infrastructure and hardware.
Think of AI infrastructure like a living body: If power is the blood circulating through data center infrastructure, metals are the bones.
In effect, every ton of metal pulled from the ground is a claim on the AI buildout.
Unlike software vendors or chip designers, metals companies don’t need to guess which AI model wins or which agent framework dominates. They just need to deliver the raw materials that make the entire ecosystem possible.
Aluminum demand is accelerating. Every high-voltage line that feeds an AI data hub consumes one to two tons of aluminum per megawatt delivered. Each new stretch of long-distance transmission deepens the world’s appetite for this versatile metal. From 104 million tons of demand in 2024 to an estimated 120 million by 2030, global aluminum consumption is set to grow relentlessly.
That spells good news for one of my Fry’s Investment Report holdings: Alcoa Corp. (AA), the largest U.S.-based aluminum producer.
Toward the end of 2025, Alcoa’s prices reached a new three-year high. After suffering a tariff-induced selloff earlier in the year, Alcoa’s shares have been trending higher.
I expect that uptrend to gain momentum – driven not only by firmer aluminum prices, but also by the company’s exceptional fundamentals.
Alcoa is not just the largest American aluminum producer, but it is also among the world’s most environmentally progressive. Producing aluminum requires immense amounts of electricity, and that energy intensity is reshaping the industry.
Today, renewable energy powers roughly 87% of Alcoa’s smelting operations and about 70% of Norwegian aluminum company Norsk Hydro’s (NHYDY). This alignment with the global push toward decarbonization gives both companies a durable strategic advantage, and positions them not merely as metal producers, but as critical enablers of the cleaner, more electrified world AI will depend on.
In the end, the market may reward not those who build the virtual world, but those who power it. The AI Revolution will always need its dreamers, but it will depend on the miners that turn metal into its bones.
In the race for AI supremacy, the hyperscalers may scorch their balance sheets, but the miners will still be cashing the checks. While hyperscaler shareholders wrestle with wafer-thin cash cushions and swelling debt, metals firms operate with clearer economics.
Their business models are not theoretical. They are measurable and proven.
Therefore, for investors seeking exposure to the AI Revolution without betting on which form of intelligence will win, a mining company like Alcoa offers a compelling opportunity.
For more information on what makes this stock a “Buy,” click here to learn how to join me at Fry’s Investment Report.
Now, let’s take a look back at what we covered here at Smart Money. Then, I’ll let you in on another way to profit in today’s unpredictable, high-pressure market.
Smart Money Roundup
The Market Moves in Four Stages — Here’s When to Move With It
March 4, 2026
According to InvestorPlace Senior Analyst Luke Lango, market volatility is now the default, and focusing on a stock’s valuation alone is no longer enough. In Wednesday’s essay, Luke discusses his perspective further, explaining why market phases are structural – and how to invest in the stage we’re in now, where momentum can majorly enhance returns. Click here to read more.
The Stock Everyone’s Buying That AI Will Destroy
March 5, 2026
As the market is surrounded by unpredictability, we’d rather focus on the foreseeable: the world-changing transformations happening thanks to artificial intelligence. AI’s takeover is inevitable – we’re already seeing it reshape industries like law, healthcare, and accounting. And soon, it will target another industry most investors don’t even suspect is vulnerable. Read on to discover the company Tom Yeung believes AI will disrupt, and how to invest in the businesses most likely to survive.
Big Tech Takes the AI Bill: What It Means for Investors
March 7, 2026
Last week, a septet of Big Tech companies signed a “Ratepayer Protection Pledge” – a pledge aimed at preventing passing AI data center-related electricity costs on to households. However, given a history of AI infrastructure driving higher electricity bills, it’s still unclear how these companies will be held to their promise to now bear those costs. Click here for more details on what this means for investors, and how to get in early on the best opportunities.
70% of Trades Are Now Machines. Here’s How to Beat Them.
March 8, 2026
In today’s market, the “buy great companies and wait” approach only works for investors with iron stomachs and patience for long holding periods. The biggest gains now tend to come in short, powerful bursts. And for Luke Lango, that’s helped shape his breakout system, allowing investors to profit from quick-moving stocks. Read on to learn more about how to implement Luke’s strategy.
Looking Ahead
The markets are feeling the pressure of rapid changes, leaving many investors unsettled.
That’s why I not only want to share one of my favorite stocks with you today – but also give you the opportunity to learn more about my colleague Luke Lango’s approach for navigating this volatile environment.
In Luke’s brand-new video, he lays out why volatility isn’t fading anytime soon… why the old buy-and-hold playbook is struggling in this environment… and how he designed a momentum-driven “Stage 2” approach in order to target stocks as they begin major breakouts.
He also walks through real historical examples his system flagged early — before some of the biggest runs of the past few years.
Plus, during the event, he reveals a free breakout stock pick you can look into immediately.
If you haven’t watched yet, now is the time.
Regards,
Eric Fry
