Nucor(US:NUE) The Motley Foolยท2025-08-26 01:14Core Viewpoint - Warren Buffett's Berkshire Hathaway has acquired a stake in steel manufacturer Nucor, highlighting the strategic importance of steel in the AI infrastructure buildout [1][5][10] Company Insights - Nucor is positioned as a foundational player in the AI narrative, as steel is essential for constructing data centers and other infrastructure necessary for AI technologies [5][10] - The company is not merely a cyclical commodity business; it is viewed as a strategic national security asset that supports various sectors, including data centers, robotics, and autonomous vehicles [10][14] - Nucor's scale and domestic operations provide a competitive advantage over global peers, despite potential trade policy challenges [13][14] Industry Context - The U.S. government recognizes the critical role of steel in the AI buildout, as seen in initiatives like Project Stargate, which involves significant investments in data center infrastructure [6][10] - There is a growing demand for steel driven by trends such as data center construction, grid expansion, and reshoring of U.S. manufacturing, which are expected to support long-term growth for Nucor [14][15] - Buffett's investment strategy reflects a contrarian approach, focusing on less obvious beneficiaries of the AI boom, such as steel, rather than chasing high-flying tech stocks [9][10]