I think I’ve just found a FTSE 100 stock that could be a big winner as the AI market booms over the next few years.
What’s even more impressive about this stock is that it only has a price-to-earnings (P/E) ratio of 11.3.
Considering that investors’ biggest fears about AI stocks are their sky-high valuations and a potential bubble bursting, I think this share is a great alternative to consider.
The company in question is Rio Tinto (LSE:RIO). However, I can understand that the question on many readers’ lips right now is: how on earth is a mining and metal company set to benefit from AI?
AI infrastructure demands
Huge sums of money are expected to be spent on AI infrastructure.
It’s estimated that $3trn will be spent on AI data centres through to 2029. The AI chip market is also set to explode at a compounded annual growth rate of 37% to $445bn by 2035.
In order to make this happen, a lot of metals will be required. Copper and aluminium are two key ones identified.
Rio Tinto, as the third-largest mining company in the world, is in an excellent position to benefit from this. The mining and production of these two metals are two key segments of its operations.
The FTSE 100 firm is also in an excellent competitive position, especially with respect to copper. In its third-quarter production results for 2025, Copper output was 10% higher than a year ago.
Moreover, it operates the Oyu Tolgoi mine in Mongolia, home to one of the world’s largest known copper deposits. At its peak, this mine is expected to generate 500,000 tonnes annually and be run for decades to come.
Already starting to see benefits
The company is already starting to see great benefits from the increased demand for these metals. In its half-year results for 2025, underlying EBITDA from copper soared 69%, from $1.8bn last year to $3.1bn. Aluminium also saw an increase by 50% to $2.4bn.
In fact, Copper has now grown from 14% of Rio Tinto’s underlying EBITDA in 2024 to 25% over this period.
With such massive investment expected in the AI infrastructure market, the miner has a tremendous opportunity to take a slice of the pie.
In effect, it could greatly benefit while the AI infrastructure is being built. AI firms that are looking to benefit directly from their use will have to wait until they’re actually built, so it’s definitely a chance for the company to make gains before others.
Things to consider
While the above sounds all well and good, investors should remember that there are risks in holding Rio Tinto shares.
Notably, commodity price fluctuations. For example, the average price of iron ore fell by 14% in the first half of 2025. This is the company’s largest source of earnings, and it contributed to the firm’s underlying EBITDA falling by 5% for the period. Investors need to bear this in mind.
However, on balance, I still believe the miner’s chance to take advantage of the growth in AI infrastructure is massive for its more directly exposed metals in this field, like copper. For this reason, I believe investors should consider buying its shares.
But this isn’t the only share in the space I think can benefit.
