Hey folks,
People keep talking about AI like it’s the second coming.
And don’t get me wrong — it’s impressive. I use it too.
But I think folks are missing something important here: AI can’t run on magic. It runs on electricity.
And we’re already close to the edge on that front.
Let me explain what I mean.
When you hear politicians talking about “bringing jobs back” or reopening old plants — especially steel and aluminum plants — what they don’t tell you is how much energy those plants suck down.
Aluminum smelters in particular are absolute energy hogs.
You can’t just build one and plug it into the wall.
These things take long-term energy contracts with utilities… and even then, they threaten to drive up everyone’s electricity bill — yours and mine included.
We’re talking seven cents per kilowatt hour just to keep a smelter running. That may not sound like a lot, but if you use 20 kilowatt hours a day, that’s an extra $40 a month on your electric bill.
And here’s where it gets really interesting…
While all that’s going on, Microsoft and every other tech giant are out there trying to lock down as much power as they can for their AI server farms. These data centers need massive, stable energy — 24/7.
So what happens when AI and aluminum go head-to-head for limited juice?
You get a squeeze. You get higher prices. And most of all, you get a massive push for new power sources.
That’s why I’ve been pounding the table on uranium.
It’s clean. It’s efficient. And it’s one of the only things that can scale up fast enough to meet this kind of demand.
That’s why you’ve got Microsoft offering to pay over $100 per megawatt hour just to get the decommissioned Three Mile Island nuclear plant fired back up.
Look, AI might be the future. But it needs a power source that can keep up.
And if we don’t solve that part of the puzzle, we’re gonna see a lot more strain… higher bills… and maybe even blackouts.
Bottom line?
Don’t just chase the AI stocks. Pay attention to the infrastructure that makes AI possible.
Because those are the names that’ll still be standing once the hype fades.
By the way, I covered this and more — including two uranium tickers that are popping right now… in my Market Radar session.
Click here to watch the episode and get the tickers.
Stay sharp,
—Geof
P.S. Another metal that’s set to soar? Gold. In fact, it’s entering its next supercycle right now.
