Key Takeaways
- Canada’s $2 billion Sovereign AI Compute Strategy and plans to double electricity‑grid capacity by 2050 are creating indirect demand for commodities, industrial real‑estate, and mining outputs.
- Pan American Silver (TSX:PAAS) benefits from AI‑driven electrification because silver is used in electronics, power systems, and data‑centre hardware; Q1 2026 showed ~49% revenue growth and near‑tripling of net income, with the stock trading at ~18× earnings and a 1% dividend yield.
- Granite REIT (TSX:GRT.UN) owns logistics and industrial warehouses that are essential for the physical backbone of AI infrastructure; Q1 2026 FFO per unit rose 7.5% and occupancy remained at 97.5%, while the trust trades at ~14× earnings with a 3.8% yield.
- Lundin Mining (TSX:LUN) supplies copper, the critical wiring metal for grids, data centres, EVs and power equipment; Q1 2026 revenue reached ~US$1.2 billion and adjusted EBITDA ~US$627 million, yet the stock still trades at 20.5× earnings and 3.4× book value, reflecting strong electrification momentum.
- Although these three companies are not traditional “AI stocks,” they offer diversified exposure to the AI boom through commodities, real‑estate, and base metals, potentially delivering upside that the market may currently undervalue.
Introduction
While much of the market’s focus on artificial intelligence (AI) centres on semiconductor makers and software firms, the ripple effects of AI investment extend far beyond the tech sector. Massive spending on AI models, training clusters, and inference engines drives demand for electricity, data‑centre construction, industrial logistics, and the raw materials that power those facilities. Canada’s recent policy moves—allocating $2 billion to a Sovereign AI Compute Strategy and pledging to double national grid capacity by 2050—highlight how public and private capital are shaping the physical foundations of AI. Investors looking for less‑obvious beneficiaries can therefore turn to companies that supply the metals, real‑estate, and infrastructure needed to sustain this expansion.
Canada’s AI Investment Landscape
Ottawa’s Canadian Sovereign AI Compute Strategy earmarks $700 million specifically for private‑sector investment in new or expanded data centres, signalling a concerted push to bolster domestic AI compute capability. Complementing this, the federal government’s plan to double electricity‑grid capacity by 2050 aims to meet the anticipated surge in power consumption from AI workloads, electrified transportation, and industrial expansion. Together, these initiatives create a tailwind for sectors that provide the physical inputs—such as silver for electronic components, copper for wiring and grid upgrades, and industrial warehouses for housing servers and logistics networks. Understanding this macro backdrop helps frame why certain non‑tech Canadian stocks may experience heightened demand as AI spending accelerates.
Pan American Silver – Overview
Pan American Silver (TSX:PAAS) ranks among the world’s largest primary silver producers, with additional gold exposure from its mines across the Americas. Silver’s unique conductivity makes it indispensable in a range of high‑tech applications, including printed circuit boards, connectors, and power‑electronic devices that populate data‑centre hardware and renewable‑energy systems. As AI drives both greater electrification and the proliferation of advanced electronics, the long‑term demand outlook for silver receives a supportive boost. The company’s geographically diverse asset base also provides a hedge against regional operational risks, positioning it to capture upside from a broad‑based increase in industrial silver consumption.
Pan American Silver – Q1 2026 Performance
In the first quarter of 2026, Pan American Silver delivered robust financial results that underscore the strength of its underlying markets. Revenue surged to US$1.2 billion, up nearly 49% from US$773 million a year earlier. Net income climbed to US$457 million, almost tripling the US$169 million recorded in Q1 2025, while earnings per share (EPS) from continuing operations rose to US$1.08 from US$0.47. The company also announced a shareholder‑return framework targeting up to US$1 billion in distributions for 2026, reflecting confidence in its cash‑flow generation. These figures indicate that the firm is not only benefiting from higher precious‑metal prices but also from increased volumes tied to industrial and tech‑related demand.
Pan American Silver – Valuation and Yield
Despite the strong earnings momentum, Pan American Silver remains relatively affordable on a price‑to‑earnings basis, trading at approximately 18× trailing earnings. The stock also offers a modest 1% dividend yield, providing a small income component alongside potential capital appreciation. If AI‑driven electrification continues to fuel demand for silver in electronics and power systems, and if macro‑economic uncertainty keeps precious‑metal prices supported, PAAS could see further rerating. Its combination of growth, reasonable valuation, and shareholder‑return commitment makes it a compelling indirect play on the AI infrastructure build‑out.
Granite REIT – Overview
Granite Real Estate Investment Trust (TSX:GRT.UN) specializes in owning and managing industrial and logistics properties across North America and Europe. Its portfolio includes warehouses, distribution centres, and other logistics‑focused assets that are critical to the supply chains supporting data‑centre construction, hardware manufacturing, and the broader AI ecosystem. As companies expand the physical backbone needed to house servers, transport components, and store inventory, the demand for well‑located, high‑quality industrial space tends to rise. Granite’s focus on power‑adjacent and logistics‑oriented properties aligns closely with the infrastructural requirements of an AI‑driven economy.
Granite REIT – Q1 2026 Performance
Granite REIT’s first‑quarter 2026 results highlight the strength of its underlying asset base. Funds from operations (FFO) per unit increased 7.5% year‑over‑year to $1.57, while same‑property net operating income rose 8.3%. Adjusted FFO per unit stood at $1.41, and the adjusted FFO payout ratio was 63%, up slightly from 60% a year earlier, indicating a balanced approach to returning cash to investors while retaining capital for growth. Occupancy remained robust at 97.5% at the quarter’s end, reflecting strong tenant demand for its logistics and industrial spaces. These metrics suggest that Granite is benefiting from heightened leasing activity driven by e‑commerce, manufacturing expansion, and, increasingly, AI‑related infrastructure projects.
Granite REIT – Valuation and Yield
The trust trades at roughly 14× earnings, presenting an attractive valuation relative to its peers in the industrial REIT sector. Coupled with a solid 3.8% dividend yield, Granite offers investors a combination of income and potential capital appreciation. Even after delivering a 35% price gain over the past year, the stock remains inexpensive on an earnings basis, suggesting that the market may not yet fully price in the long‑term tailwinds from AI‑driven logistics demand. For those seeking a steadier, real‑estate‑oriented exposure to the AI build‑out, Granite REIT presents a compelling option.
Lundin Mining – Overview
Lundin Mining (TSX:LUN) is a diversified base‑metals producer with significant output of copper, alongside gold, nickel, and zinc. Copper’s role as the primary conductor in electrical grids, data‑centre power distribution, electric‑vehicle wiring, and industrial machinery makes it a linchpin of the electrification trend that underpins AI expansion. As AI workloads increase power consumption, utilities and grid operators must upgrade transmission and distribution networks, driving heightened copper demand. Lundin’s extensive copper portfolio positions it to benefit directly from these infrastructure upgrades, while its by‑product metals provide additional diversification.
Lundin Mining – Q1 2026 Performance
In Q1 2026, Lundin Mining reported revenue of approximately US$1.2 billion, reflecting strong commodity prices and steady production volumes. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at about US$627 million, with adjusted operating cash flow of roughly US$450 million and free cash flow from continuing operations of around US$380 million. Copper production reached 30,808 tonnes from continuing operations and 145,471 tonnes on a pro‑forma combined basis, illustrating the scale of its copper platform. These figures underscore the company’s ability to generate substantial cash flow even as it invests in capacity expansion and sustainability initiatives.
Lundin Mining – Valuation and Multiples
Despite a remarkable 209% price increase over the preceding period, Lundin Mining still trades at 20.5× earnings and 3.4× book value. While these multiples are not deep‑value levels, they are consistent with the market’s recognition of copper’s strategic importance in the global electrification and AI narratives. Historically, copper‑focused equities tend to retain premium valuations when investors anticipate sustained demand for grid upgrades, renewable‑energy integration, and EV adoption. Consequently, Lundin may continue to command a relatively higher multiple as long as the macro‑driven outlook for copper remains favorable.
Bottom Line – Indirect AI Plays
The three Canadian companies discussed—Pan American Silver, Granite REIT, and Lundin Mining—offer distinct pathways to capture upside from the AI boom without owning traditional technology stocks. Pan American Silver leverages silver’s role in electronics and power systems, Granite REIT provides exposure to the industrial logistics and warehousing needed to house AI hardware, and Lundin Mining supplies copper, the essential metal for grid expansion and electrification. Each reported strong Q1 2026 fundamentals, trades at reasonable valuations relative to earnings, and offers dividends or yield components that enhance total‑return potential. If the next phase of AI investment shifts toward building out the physical infrastructure—power generation, data‑centre construction, supply‑chain logistics, and metal‑intensive manufacturing—these stocks could experience additional upside that the market presently undervalues.
Motley Fool Canada’s Top 10 TSX Stocks for 2026
The article concludes with a reminder that The Motley Fool Canada’s Stock Advisor service has identified its top 10 TSX picks for 2026, noting that Granite REIT did not make that list. The service highlights historical performance, citing an example recommendation of MercadoLibre from January 2014 that would have grown a $1,000 investment to over $18,000. Stock Advisor Canada’s average return of 94% is presented as outperforming the S&P/TSX Composite Index’s 85% average return. Readers are encouraged to consider joining the mailing list for access to those recommendations, while a standard disclosure notes that the contributor holds no positions in the mentioned stocks and that The Motley Fool recommends Granite REIT.
Disclaimer
The summary above reflects the information presented in the original Motley Fool Canada piece and is intended for informational purposes only. It does not constitute investment advice, and readers should conduct their own research or consult a financial professional before making any investment decisions. All data, figures, and opinions are sourced from the cited article and are accurate as of its publication date.