So Michael Burry decided to short Nvidia and Palantir, and suddenly everyone’s acting like the sky is falling. You know, the same Michael Burry who called the 2008 housing crash and then… well, let’s just say his track record since then has been about as consistent as my gym attendance.
Here’s the thing: Burry made one legendary call 17 years ago, and now every time he sneezes, the market catches a cold. But let’s talk about his recent hits, shall we? There was that Tesla short in 2021 that didn’t exactly print money. Or that time he tweeted “SELL” in January 2023, right before the market went up 19%. Classic.
Look, I get it. When someone famous for predicting financial disasters starts betting against the hottest stocks in the market, it’s natural to feel a little queasy. But here’s what’s actually happening: a fund manager who isn’t an AI expert is making a bet against companies that are literally printing money.
Palantir’s CEO Alex Karp had the perfect response: “The two companies he’s shorting are the ones making all the money, which is super weird.” I mean, when you put it like that…
But Here’s the Real Opportunity Everyone’s Missing
While everyone’s freaking out about whether Nvidia is overvalued, there’s a much simpler play hiding in plain sight. Think about it: regardless of which AI companies win or lose, they all need the same basic ingredients to build their tech.
I’m talking about metals. Boring, unglamorous metals that make everything possible.
Copper, for instance, is basically the unsung hero of the AI revolution. Every data center, every AI chip, every power grid upgrade – they all need copper. Goldman Sachs thinks we’re going to add “the equivalent of another U.S.” to global copper demand by the end of the decade. That’s not hype, that’s math.
It’s like investing in shovels during a gold rush, except the gold rush is real and the shovels are essential.
The Smart Money Play
Instead of trying to pick which AI company will rule the world, why not bet on the materials they all desperately need? Whether it’s copper for conductivity, rare earth metals for chips, or aluminum for infrastructure – these aren’t going anywhere.
You can play this a few ways: grab some ETFs like the Global X Copper Miners ETF (COPX) for the set-it-and-forget-it approach, or look at individual miners if you want to get more specific. Even aluminum giant Alcoa is looking interesting these days.
The beauty of this play? Even if Burry ends up being right about tech valuations, the demand for these materials isn’t going anywhere. AI isn’t disappearing – it’s just getting started. And every breakthrough, every new data center, every advancement needs these same basic building blocks.
So while everyone else is panicking about whether we’re in a tech bubble, maybe it’s time to focus on the foundation that makes it all possible. Because at the end of the day, you can’t build the future without the right materials – and that’s a bet I’m comfortable making.