We just covered the
10 Best Non-AI Stocks to Buy According to Billionaire Stanley Druckenmiller. Alcoa (NYSE:AA) ranks #4 (see 5 Best Non-AI Stocks to Buy According to Billionaire Stanley Druckenmiller).
Druckenmiller’s Stake: $99,057,000
Alcoa (NYSE:AA) is in the spotlight amid rising aluminium prices due to the ongoing Middle East conflict. Recently, UBS upgraded the stock and increased its price target. The firm believes supply disruptions cause aluminium prices to remain higher, which ultimately bodes well for Alcoa.
UBS aid Alcoa’s (NYSE:AA) valuation is attractive and highlighted its strong cash flow potential.
But the core thesis isn’t just about aluminium prices. Alcoa (NYSE:AA) has several secular growth catalysts. Aluminium is used in transportation, electricity infrastructure, construction, packaging, consumer durables, and machinery. Estimates suggest aluminium demand was estimated to rise by about 39% from 2020 through 2030. In the transportation sector, demand was estimated to jump a whopping 59%, thanks to the EV boom.
While we acknowledge the potential of AA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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