Will This Stock Lead the Next Wave of the Commodities Supercycle?

With so much investor attention on AI chips and tech, it’s easy to overlook things like commodities. And yet we see gold consolidating around all time highs, silver hitting new decade highs, and platinum up over 50% in the past few months. 

Platinum and silver aren’t just precious metals: they’re precious-industrial hybrids … so the fact they’re heating up is a sign of increased interest in the commodities fueling the physical buildout of tomorrow’s world.

I think this rally broadens into purely industrial metals (AKA base metals) like copper and aluminum next. Copper futures have been showing a lot of strength, but the copper industry overall is B rated in our system. 

Meanwhile, aluminum is A rated.

The top pick in the space according to our Zen Ratings system is Kaiser Aluminum (NASDAQ: KALU) with a rating of B, or Buy. Similar stocks had an average return of +19.88% per year. Here’s why I think KALU could be another winner. 

A note from our sponsors...
The Best 10 AI Stocks to Own in 2025  

Discover the AI pioneer 99% of investors have never heard of... but it's one of my top picks to own now. This company has been an AI pioneer since before anyone ever heard of ChatGPT. Its sustained high double-digit growth has analysts raising price targets. Get the name-FREE.    

Discover this under-the-radar AI stock now, ahead of the crowd.

Why Aluminum, and Why Now?

So why aluminum in the first place? 

Because this metal touches nearly everything in a modern economy:

• Aerospace & defense
• Electric vehicles
• Power transmission
• Construction & public infrastructure
• Cooling + electrical systems in AI data centers

As we invest in next-gen transportation, energy grids, and AI infrastructure, aluminum demand is surging, and Kaiser Aluminum (NASDAQ: KALU) is sitting squarely in the middle of it all.

What Kaiser Does

KALU is a vertically integrated aluminum producer focused on high-performance end markets, not just raw commodity output. 

Its biggest segments?

• Aerospace & Defense (~45% of sales): Aluminum plate and extrusions for Boeing, Airbus, and military programs.
• General Engineering & Automotive (~40%): Products used in EV platforms, energy, transportation, and industrial machinery.
• Packaging (~15%): Mostly beverage can sheet, providing stability and recurring cash flow.

Why the Bull Case Is Heating Up Now

1. The Aerospace Rebuild Is Real

Boeing and Airbus both have order backlogs that stretch deep into the decade. Global air travel demand is rising, and military rearmament across the U.S. and NATO is driving long-cycle growth. Even Europe is re-arming itself … just look at the outperformance of European defense stocks (BATS: EUAD):

Aluminum is critical to airframes, missiles, satellites, and more.

2. AI + Electrification = More Aluminum

Data center growth means grid expansion. That means transmission lines, transformers, and cooling systems, all of which use aluminum. Add in the push for EVs and you have another massive source of demand.

3. Public Infrastructure + Re-shoring

The U.S. is pouring billions into roads, rail, energy, and industrial capacity. As reshoring picks up speed, domestic aluminum producers like Kaiser are poised to benefit, especially those already operating in the U.S. and Mexico.

4. Sentiment is A-Rated

Our Sentiment Component Grade weighs inputs like earnings surprises, short interest, and upward and downward earnings revisions. Currently, KALU scores an A, which suggests there might be a lot of arbitrage to be gained in the stock from sentiment alone … and smart money could be positioning in the stock. 

Click here to see how KALU scores across Growth, Momentum, and other Component Grades.

Bottom Line

Kaiser Aluminum isn’t flashy. It won’t dominate headlines like Nvidia (NASDAQ: NVDA). But it might quietly deliver meaningful returns as aluminum enters a new structural bull market.

With a diversified revenue base, exposure to the strongest parts of the economy (defense, EVs, infrastructure), and our top rating in the sector, KALU may be worth a closer look.

Click here to see other Aluminum stocks.

What to Do Next?

• 9 Special Stock Lists You Need Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.