The copper rally is far from over, which could boost Freeport McMoRan (FCX) even higher after a recent pullback.
Supply-demand issues and new Chinese tariffs sent copper higher in recent months. But the run higher is far from over thanks to artificial intelligence. After all, copper wires and power cables are essential for electric companies – which are seeing higher demand for energy at AI data centers.
The “electrification of everything theme, whether it be the replacement of hydrocarbons as a primary fuel source, or the use of power-hungry cloud computing to run all aspects of our economy and lives” is driving copper higher along with utility stocks, Gavekal Research analyst Tan Kai Xian said, as quoted by Barron’s.