Global capital pivots toward copper and AI

International capital is reshaping its priorities around three central trends: the development of artificial intelligence, the advance of the energy transition and political shifts in emerging markets. Eternal Capital, a firm with operations in Miami and Singapore, has built its strategy around four investment pillars.

In the technology sector, the company is focusing on the physical infrastructure underpinning artificial intelligence. South Korea accounts for roughly half of global advanced memory production, with Samsung and SK Hynix as leading players, while TSMC manufactures approximately 80% of the most sophisticated chips in Taiwan. Data center growth at Amazon, Google and Meta is driving demand, though sector valuations already reflect much of that potential.

Latin America stands out as another area of interest due to its relative prices, competitive currencies and exposure to commodities. The strategy included purchases in Argentina ahead of Javier Milei's election and later added positions in Chile and Colombia. Brazil is also on the radar, seen as a cheap market sensitive to an election outcome different from the one investors currently price in.

Copper is the third pillar of the strategy. The expansion of power grids tied to wind and solar energy, the growth of electric and autonomous vehicles, and data center consumption are adding pressure on demand. At the same time, mine supply requires long lead times to respond, given the time needed to develop new projects.

The firm also sees opportunities in financial inclusion in Eastern Europe. Poland and Hungary show low credit penetration relative to Western Europe, leaving room for loan growth. In this segment, Eternal Capital holds positions in banks in Greece, Hungary, Poland and Georgia, prioritizing leading, profitable institutions with low valuations.

With information from Clarín — Economía.