Over the last year, the FTSE 100 has experienced a splendid year, with the index rising by 18.3%.
However, I don’t own any ETFs related to the Footsie. In fact, I only own one share in the entire index.
That doesn’t mean I’m not a fan of its various constituents, because I very much think there are great opportunities available in it to investors.
So why is Rio Tinto (LSE:RIO) the only FTSE 100 share I own right now?
My strategy
In my stock portfolio, I have a policy of only actively buying eight shares at any one time.
Right now, Rio Tinto is one of my eight favourite stocks, with no other Footsie stock making the cut.
But there are more than eight great stocks in the world. So just because no other shares in the index are on my list doesn’t mean there aren’t any great choices in it. Some of them include:
- Rolls-Royce
- Lloyds
- Rightmove
I think all of these are great companies with bright futures ahead. Particularly Rolls-Royce, which I think has one of the best growth prospects out of all UK companies.
All of its divisions have strong catalysts that could propel its shares further. For example, I particularly like the aircraft engine manufacturer’s investments in small modular reactors.
It’s actually one of my favourite companies. It’s just not in my top eight at the moment. However, I still believe investors should consider looking into the company further for their own stock portfolio.
But what makes Rio Tinto so special?
Ultimately, my favouritism for Rio Tinto shares boils down to artificial intelligence (AI).
I think AI is going to have a transformational effect on people’s lives and how they work, similar to the Industrial Revolution.
While the mining giant itself isn’t directly an AI company, its operations serve as the starting point for the AI revolution to occur.
In order for AI systems and software to work, AI data centres and chips need to be in place. And for AI data centres and chips to be built, crucial metals such as copper and aluminium need to be mined and supplied.
Rio Tinto has a strategic advantage in this area. Its Oyu Tolgoi mine in Mongolia has one of the world’s largest copper deposits.
Furthermore, last Friday (29 May), the company announced it started the commissioning of its $1.5bn low-carbon aluminium smelter in Quebec, Canada. This should increase the plant’s capacity by 160,000 metric tonnes to 220,000 metric tonnes.
In time, this should result in future earnings growth.
Strong results
Commodity prices can be quite volatile. As the current geopolitical environment itself is volatile, this could hurt the firm’s earnings in the short term.
However, I believe the growth in AI is already having a positive effect on the company’s earnings. In its 2025 results, underlying EBITDA (earnings before interest, tax, depreciation, and amortisation) from copper rose by 114% to $7.4bn, and for aluminium and lithium, it went up by 29% to $4.6bn.
Moreover, in its first-quarter production update for 2026, the miner’s copper production rose by 9%.
These are good signs for the company’s long-term prospects, especially as AI growth ramps up. Overall, that’s why I think investors should consider buying Rio Tinto shares.
Should you invest £5,000 in Rio Tinto Group right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rio Tinto Group made the list?
Muhammad owns shares in Rio Tinto.
