Billionaire Chamath Palihapitiya Says This Is the Best Artificial Intelligence (AI) Investment for 2026 (Hint: It’s Not Even a Stock)
Publish Date: 2026-01-20 16:26:00
Source Domain: www.theglobeandmail.com
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Chamath Palihapitiya’s Prediction: Venture capitalist Chamath Palihapitiya is predicting that copper, a key mineral in data center infrastructure, will be a significant investment opportunity in 2026 due to its critical role in the expanding power grid needed to support AI workloads.
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Copper’s Importance in AI: As AI growth increases the demand for data centers, copper becomes essential in meeting the infrastructure needs. The expected rise in power consumption by data centers makes copper a valuable resource.
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Investment in Precious Metals: Instead of focusing on popular choices like AI megacorporations and chip designers, Palihapitiya suggests diversifying portfolios with precious metals, specifically copper.
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Ways to Invest in Copper: Investors can gain copper exposure through mining stocks (like Freeport-McMoRan and Southern Copper), copper-focused ETFs (like the iShares Copper and Metals Mining ETF), or the United States Copper Index Fund (CPER).
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Copper Performance: The United States Copper Index Fund has shown strong returns, gaining 30% over the past year, nearly doubling the S&P 500, indicating a potentially favorable long-term outlook.
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Diversification Strategy: Incorporating copper into an investment portfolio provides a diversificative benefit and aligns well with the long-term growth in AI infrastructure.
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Contrary View from Analysts: Despite Palihapitiya’s bullish stance, other analysts recommend different stocks that have historically achieved significant returns, such as Netflix and Nvidia, suggesting a cautious approach when considering investments in commodities like copper.
