AI and energy sectors to trade in tandem
The guest argued that the tech/AI sector and the energy sector (including traditional oil/gas and renewables) will begin trading in parallel over the next 1-2 years due to AI's massive power demands.
The argument
Currently, there is an inverse relationship between oil and tech as investors treat them as opposing trades. However, the guest argued that because data centers are ultimately limited by gigawatts of power rather than chips, tech expansion will directly drive traditional and renewable energy demand, forcing the market to price them together.
The thesis, stress-tested
✓ What validates it
- ✓Positive correlation coefficient between tech indices and energy sector ETFs over the next 12-24 months
- ✓Increased utility and power purchase agreements signed directly by major tech firms with oil, gas, and solar providers
▸ Risks discussed
- ▸Rapid efficiency gains in AI chips reducing power consumption per unit of compute
- ▸Macroeconomic slowdown dampening overall energy demand
Hear it yourself
"I definitely wanna get into clean tech as well, but you're I always love talking to you about silver because you have great insights. And, you know, we're back above $80. Where do you see the silver market headed from here? And do you think we see a return to triple digits and maybe even new all time highs here in 2026? I don't know, Jesse, to be honest. I think there is pros and cons for silver. First first of all, if you look at gold, usually silver follows gold, meaning that meaning that when when gold goes up and silver goes up twice, but when gold is correcting and, silver gets whack, twice is hard."
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