Chances are that you've heard how the real fortunes from the California gold rush weren't made digging for gold. Instead, they were made by people selling picks and shovels. Today, a similar picks-and-shovels opportunity may be shaping up for the $15.7 trillion artificial intelligence (AI) revolution.

Because just as the picks and shovels merchants made money no matter who found the gold, First Majestic Silver (AG 0.41%), already up 100% in recent months, could keep rising, no matter which tech company wins the AI race.

The AI revolution can't proceed without silver

AI data centers could consume as much electricity as all of Japan -- a nation of 125 million people -- by 2030, according to the International Energy Agency. This is why OpenAI CEO Sam Altman in 2024 called for an energy breakthrough to meet the surge in demand, while doubling down in June that a "significant fraction" of global electricity should be devoted to AI.

And with governments around the world bent on decarbonization, these energy needs will largely be met by nuclear power and renewables.

In America, President Donald Trump is quadrupling the number of nuclear reactors. Worldwide, the number of solar installations soared by 64% for the first half of 2025, compared to the first six months of last year. And despite the loss of tax credits for American buyers, BloombergNEF expects almost 22 million electric vehicles to be sold in 2025, a new record.

The turn to clean energy to meet AI's energy needs is a massive boon to silver prices. That's because the average nuclear reactor needs 56,000 ounces of silver, while each solar panel requires about 0.64 ounces. Electric vehicles need about 1.3 ounces of silver, twice as much as the gas-powered cars they're replacing.

Add up the hundreds of millions of solar panels, hundreds of new nuclear reactors, and millions of new electric cars, and it's small wonder that silver prices have surged 60% year to date. And with experts forecasting a supply crunch, it's easy to envision prices climbing still higher.

You can see the AI revolution's impact on silver through the iShares Silver Trust (SLV 2.33%), a fund that buys and stores physical silver. It's returned over 100% since ChatGPT launched in November 2022.

Management touts First Majestic's "best quarter ever"

The silver boom is great news for First Majestic, which is just coming off what CEO Keith Neumeyer calls its "best quarter ever in the company's history," with a 76% jump in silver production year over year, and a 94% jump in revenue.

He also touted the company's record cash flow of $115 million and its total cash of $510 million, calling it "not too bad a place to be." This war chest, against debt of just $235 million, gives First Majestic a debt-to-equity ratio of just 8.08%, which compares favorably to bigger rivals like Pan American Silver (PAAS -0.31%) or Hecla Mining (HL -1.41%), with their respective debt-to-equity ratios of 16.9% and 24.9%.

The Vancouver-based company, valued at roughly $6 billion, is still a mid-cap stock. It has four major silver and gold mines, most notably San Dimas, a mine in Durango, Mexico, which recently saw encouraging exploration results. San Dimas has over 30 million ounces of silver in proven and probable reserves, plus 364,000 ounces of gold in proven and probable reserves, which it costs just $21.06 per ounce to extract. First Majestic can access the 10.5 million ounces of proven and probable silver reserves in its Santa Elena mine even more cheaply, at $14.40 per ounce.

Silver miner with a yellow hard hat, holding a piece of silver.

Image source: Getty Images.

But First Majestic isn't content to rest on its laurels. Record spending on exploration is underway, with 255,000 meters expected to be drilled in 2025, compared to 182,909 meters drilled last year.

Clearly, management knows what the ongoing silver boom could mean for the company, and is determined to meet the moment.

And because 55% of First Majestic's revenue comes from silver, compared to 44% for the nearest major miner, it is a compelling opportunity for investors seeking a "pure play" to ride the silver boom.

Can shares keep climbing?

First Majestic shares have soared over 120% year to date, raising questions of whether its rally can continue.

At first glance, shares appear richly valued. First Majestic's price-to-sales ratio of 5.7 is well above the industry average of 2.9. Its forward price-to-earnings ratio stands at 45.3, which is expensive but not prohibitively so.

But investors should keep First Majestic's record cash position in mind. Its $510 million in total cash could allow it to make strategic acquisitions to dramatically grow its mining empire, as it did when it acquired the Los Gatos mine and its 6 million ounces in annual silver production in 2024.

Additionally, a further climb in silver prices would boost First Majestic's earnings and allow it to grow into its valuation.

For investors looking for a way outside of tech to play the global AI revolution, or simply capitalize on an ongoing silver boom, First Majestic could be worth buying.