TL/DR –
The artificial intelligence (AI) ecosystem is divided into three layers: enabling, intelligence, and application. Rapid AI adoption is expected to significantly increase US electricity demand and raw material prices while also driving growth in the power and resources sector. Finally, the global longevity market, created by the intersection of demographics and innovation, is projected to generate annual revenues of up to USD 8 trillion by 2030, presenting opportunities in health care, consumer markets, financial services, and real estate.
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The Framework of Artificial Intelligence Investment
The investment structure for artificial intelligence (AI) can be divided into three independent layers: enabling, intelligence, and application. Each layer plays a crucial role in the AI infrastructure.
The underlying or enabling layer includes the basic infrastructure and core technologies that drive AI. This encompasses semiconductors, cloud computing, networking devices, and specialized hardware. The expectation is that the demand for advanced chips and high-performance computing will be beneficial for firms operating in this layer.
The intelligence layer is responsible for the software, algorithms, and data platforms necessary for AI systems to learn, reason, and derive insights. This layer involves AI model developers, data management companies, and machine-learning tool providers. Monetizing innovation remains a hard nut to crack for AI software firms, however, those incorporating AI into workflows or offering scalable platforms are well placed for growth.
The application layer consists of end-user products and services that utilize AI to add value. This layer is expected to experience the most significant impact and quickest growth in the next three years, as AI transitions from the experimental stage to deployment and as consumer adoption increases. It is crucial to keep an eye on companies that can showcase clear productivity enhancements, cost savings, or new revenue streams from their tools.
Investing equally across the enabling, intelligence, and application layers is recommended to tap into the full range of growth prospects and manage risks as the technology matures. Such a diversified approach should enable investors to benefit from further investment in core infrastructure, software innovation, and real-world adoption, while minimizing exposure to volatility in any single segment.
AI and the Demands on Power Resources
The swift adoption of AI is pushing US electricity demand higher. It is projected that data centers will add as much power demand as Sweden currently uses annually by 2030. By 2035, data centers could constitute up to 9% of total US electricity consumption, up from around 4% today. The EIA predicts that average wholesale power prices will be 23% higher in 2025 than in 2024.
Policy support for clean energy remains strong in the EU and China, with initiatives like the EU Green Deal and China’s Five Year Plan investing hundreds of billions into grid modernization. In the US, policy support is more varied due to ongoing legislative amendments.
The power and resources industry is becoming an attractive investment focus due to higher demand driving new capital investment across the electricity value chain. Global grid investment is projected to hit around USD 500bn in 2026.
As demand increases, technologies like AI-driven grid management and modular nuclear reactors are expected to rise, although small modular reactors are unlikely to be a significant revenue driver until the mid-2030s.
Meanwhile, the tightening supply of raw materials presents both challenges and opportunities. Copper demand, for instance, is expected to increase by nearly 3%, likely forcing prices above USD 13,000/mt in 2026 as the market deficit widens.
The Longevity Opportunity
Technology and infrastructure are not only reshaping the way we live and work but are also creating a new force at the intersection of demographics and innovation: the longevity opportunity. This trend centers around innovative products and services that help people live longer, healthier lives.
The global longevity market is expected to grow from USD 5.3 trillion in 2023 to USD 8 trillion by 2030. The health care sector alone presents a USD 2.2 trillion opportunity. Notably, there’s potential for strong growth in the obesity, oncology, and medical device markets.
For obesity drugs (GLP-1s), revenue growth of around 12% CAGR through 2030 is expected. Factors driving this include clinical benefits, expanding insurance coverage, and potential launches of oral GLP-1s from next year.
Oncology pharma is projected to grow at an 8% CAGR by 2030, thanks to aging demographics, new cancer modalities, and earlier diagnoses.
Medical devices, particularly those related to diabetes and surgery, are also expected to see revenue growth at mid- to high-single-digit rates, driven by advances in continuous glucose monitoring (CGM) and minimally invasive surgery.
Investors should consider diversifying their approach across sectors that are poised to benefit from demographic shifts. Healthcare is a key driver of the longevity market, given its critical role in serving an aging population. However, other sectors such as consumer markets, financial services, and real estate also present opportunities. It’s important to note that some of these sectors are still adjusting their business models to meet the needs of a growing demographic.
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