Copper Is Rebounding. What's the Best Way to Invest?
Copper prices continue to climb this year, despite minor setbacks.
Overview
The massive investment into AI data centers cannot continue without copper. It provides miles and miles of wiring connecting these massive facilities, along with many other electrical components. A traditional data center requires between 5,000 and 15,000 tons of copper, according to the Copper Development Association. AI data centers can need up to 50,000 tons of copper per facility.
Yet after peaking at an all-time high of $6.68 per pound in May of this year, the price of the red metal fell slightly this summer as investor doubts crept in about the near-term profitability of AI investments. Copper's price dropped to about $6.01 a pound by late June. The price has been rebounding strongly since then, however. As I write this, it's back at $6.62 a pound and climbing.
Details
Copper prices have been surging, in fits and starts, since late 2023 due to growing demand from AI hyperscalers building data centers, coupled with supply that can't keep pace. Mine development has been sluggish in recent years, and ore grades have declined. Electric vehicles, growing solar power, and electrification in poorer nations all add to global demand for copper.
Source
Originally published at www.fool.com.
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