BNN Bloomberg: Cam Scrivens on Commodities, Alphabet, and the AI Infrastructure Crossover
In a recent appearance on BNN Bloomberg, JCIC President Cameron Scrivens explored the direct intersection between physical commodities and digital innovation, outlining why Freeport-McMoRan offers a unique dual exposure to copper deficits and the AI buildout, while detailing the structural moats supporting Alphabet's full-stack technology platform.
The Quick Take
The Copper Supply Squeeze: Years of lackluster investment in copper mining combined with long project development timelines have created a structural deficit. Freeport-McMoRan (FCX) represents an exceptional vehicle to play both this physical supply squeeze and the rising demand from AI data center power grids.
Alphabet’s Cloud Acceleration: Alphabet (GOOGL) has demonstrated outstanding operational momentum, highlighted by a staggering 63% growth rate in its cloud division and a doubled backlog, proving its dominant full-stack platform strength.
The Capex Advantage: The market's anxiety over massive technology infrastructure spending (Capex) is misplaced. For global giants like Alphabet, heavy spending builds an unassailable infrastructure moat that competitors simply cannot duplicate.
Interview Insights
1. Freeport-McMoRan: The Copper Conundrum & The AI Power Crossover
A common pitfall in modern investing is looking at the technology sector in a vacuum. Investors often forget that the digital revolution requires a massive, physical backbone. Artificial intelligence, high-performance computing, and the global transition to electric grids are extraordinarily power-intensive. This reality has turned copper—the world's premier conductor of electricity—into a critical strategic asset.
Freeport-McMoRan Inc. (FCX) represents a high-conviction holding within our portfolios because it perfectly straddles the line between a traditional commodity play and a secular technology theme.
The structural case for copper is anchored by a massive supply imbalance:
Underinvestment: Global capital expenditure in copper exploration and mining has been lackluster for years.
Extreme Lead Times: Bringing a new world-class copper mine from initial discovery to active production is a complex process that typically takes 7 to 10 years.
Immediate Shortages: Because no meaningful new supply is scheduled to hit global markets in the near term, copper is experiencing a structural deficit. This supply squeeze has fueled a strong price rally over the past 2 to 3 weeks as the market wakes up to the shortage.
By owning Freeport-McMoRan, our clients own the premier operator of low-cost, long-life copper reserves. We utilize our mathematical 10-Point Investment Framework to identify these physical infrastructure leaders, ensuring our clients benefit from the AI boom without taking on speculative tech-product risks.
"You cannot build a digital, AI-driven future without physical electricity, and you cannot transmit that electricity without copper. With lackluster global mining investment and a 10-year development window for new supply, Freeport-McMoRan sits at the absolute gate of a major structural deficit." — Cameron Scrivens, Portfolio Manager
2. Alphabet: The Valuation Disconnect in Full-Stack AI
While some market participants argue over which early-stage software companies will win the artificial intelligence race, we prefer to own the underlying platform. Alphabet Inc. (GOOGL) represents a dominant "full-stack" AI ecosystem, commanding the consumer entry points, the data pipelines, and the cloud infrastructure required to monetize computing at scale.
During the first quarter of 2026, Alphabet experienced a sharp, sentiment-driven pullback, bottoming out below 280 in April. This correction compressed its valuation, allowing the stock to trade at a highly compelling forward multiple of less than 20 times earnings.
Our fundamental analysis identified this as a clear valuation disconnect. Alphabet's underlying business remains spectacularly strong:
Cloud Acceleration: Alphabet's cloud business expanded at an extraordinary 63% growth rate.
Contract Backlog: The firm's cloud backlog doubled, indicating strong future recurring revenue.
YouTube Dominance: While short-term advertising metrics occasionally show temporary soft spots, YouTube remains an unrivaled media asset with over 350 million active subscribers.
By looking past short-term volatility, we acquired a world-class compounder at an attractive price, executing the strategic buying discipline detailed in our Investment Philosophy.
3. The Capex Fallacy: Why Massive Infrastructure Spending is a Moat
The prevailing media narrative surrounding mega-cap technology companies is often dominated by anxiety over capital expenditure (Capex). Analysts frequently worry that these firms are "spending too much money" on data centers, fiber-optic networks, and custom silicon.
At JCIC, we view this heavy Capex not as an operational drag, but as a uniquely powerful competitive moat.
Building next-generation computing platforms is capital-intensive. Only a tiny handful of businesses in human history generate the massive free cash flow required to spend 40 to 50 billion annually on technological infrastructure. This level of spending ensures that Alphabet remains the indispensable utility of the digital age, widening the structural gap between itself and any potential disruptors.
For long-term wealth stewardship, owning the physical and digital toll booths of the global economy is the mathematically superior path to capital preservation.
Watch More: Explore further market highlights and reviews on our YouTube channel →
Active Stewardship: Merging Tangible Value with Secular Growth
At JCIC Asset Management, our active portfolio construction is designed to find companies that possess durable moats, high barriers to entry, and absolute liquidity. Whether we are buying copper mines in the physical world or cloud infrastructure in the digital world, we refuse to overpay for hype. We focus strictly on direct ownership of cash-generating assets that protect and compound your real-world purchasing power over time.
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