Rio Tinto Group (LSE: RIO) is the only FTSE 100 stock currently held in one private investor’s portfolio, despite the index rising by 18.3% over the last year.
The investor maintains a strict policy of holding no more than eight actively selected stocks at any one time, with Rio Tinto securing one of those coveted positions.
No other stock from the broader FTSE 100 index makes the cut under this approach, though the investor is clear that this does not reflect a lack of quality across the index.
Several FTSE 100 constituents, including Rolls-Royce, Lloyds, and Rightmove, are singled out as great companies with strong futures ahead.
Rolls-Royce receives particular praise, described as having one of the best growth prospects of any UK company, with all of its divisions carrying strong catalysts for further share price gains.
The aircraft engine manufacturer’s investments in small modular reactors are highlighted as a specific area of interest, though the company does not currently rank among the investor’s top eight picks.
Rio Tinto’s appeal comes down primarily to its role in the artificial intelligence revolution, which the investor believes will be as transformational as the Industrial Revolution.
AI data centres and chips require substantial volumes of copper and aluminium to be built, positioning the mining giant at the very starting point of the AI supply chain.
The company’s Oyu Tolgoi mine in Mongolia holds one of the world’s largest copper deposits, giving Rio Tinto a significant strategic advantage in meeting that demand.
On 29 May, Rio Tinto announced it had started commissioning a $1.5bn low-carbon aluminium smelter in Quebec, Canada, which is expected to increase the plant’s capacity by 160,000 metric tonnes to 220,000 metric tonnes.
The company’s most recent full-year results showed underlying EBITDA from copper rising by 114% to $7.4bn, while aluminium and lithium EBITDA climbed 29% to $4.6bn.
In its first-quarter 2026 production update, copper output rose by a further 9%, adding to the positive signals around the company’s long-term earnings trajectory.
Commodity price volatility and the current geopolitical environment are acknowledged as potential short-term risks to the firm’s earnings performance.
However, the investor argues that growing AI demand is already feeding through positively into Rio Tinto’s financial results, and that this trend is likely to accelerate over time.