Forget Rare Earths; This 1 Critical Commodity is Powering a Structural AI Revolution

Everyone’s watching artificial intelligence (AI) chips, rare earths, and semiconductors — but the real story might be the one metal at the heart of all these investing themes: Copper.

Known as “Dr. Copper” for its historical ability to “diagnose” the health of the global economy, copper is becoming the heartbeat of the energy transition, AI infrastructure, and clean-tech growth.

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And while market headlines focus on big movers like Nvidia (NVDA) and Lithium Americas (LAC), copper (HGZ25) quietly just became one of the most important commodities of the next decade.

Copper Demand Is Exploding

According to Wood Mackenzie, copper demand is projected to jump 24% by 2035, driven by:

• Electric vehicles and charging networks
• Renewable power grids
• AI data centers that require massive electrical infrastructure
• Defense and industrial spending

That surge represents over 7 million tons of new demand, but meeting it won’t be easy. It would require an estimated $210 billion in new mining investment and 8 million tons of new capacity per year.

Global Shifts in Supply Power

As Western producers hesitate, other nations are stepping in. China, Russia, and Middle Eastern investors are funding mines across Africa, Asia, and Latin America.

This is gradually shifting control of future copper supply toward the East, giving emerging economies a larger role in global industrial and energy infrastructure. Meanwhile, expanding tariffs in the U.S. and policy headlines tied to metals and manufacturing have kept traders laser-focused on copper and mining stocks.

Copper: The Real “AI Commodity”

Every AI data center, electric vehicle, and renewable power line runs on copper. AI chips get all the attention, but without copper wiring and transformers, the world’s next-gen compute networks can’t even turn on.

That’s why some market-watchers are starting to call copper “the real AI trade.”

Historically, when copper prices rise, it signals economic expansion. When they fall, it can warn of a slowdown. But in today’s market, rising copper may be signaling something bigger — a structural supercycle driven by technology and electrification.

Stocks and ETFs to Watch

Copper prices are already up roughly 19% in 2025, and many analysts think it’s just the beginning. If supply can’t keep up, prices could eventually push toward $6 per pound or higher in the next few years.

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Here are 5 names to keep on your radar and add to a Barchart Copper Watchlist:

1. Freeport-McMoRan (FCX) – Leading U.S. copper producer with exposure to gold.
2. Southern Copper (SCCO) – Strong growth, but stretched valuations and geopolitical exposure.
3. Teck Resources (TECK) – Diversified miner expanding into copper and energy transition metals.
4. Rio Tinto (RIO) – Global giant with strategic copper and iron projects.
5. Global X Copper Miners ETF (COPX) – Diversified exposure to global copper producers, up 55% year-to-date.

How to Track Copper on Barchart

You can monitor all of these trends directly on Barchart.com:

• Futures Trading Guide: Get technical signals, entry levels, and trading strategies for copper and other commodities.
• ETF Finder: Discover top funds with copper and mining exposure in their holdings.
• Custom Watchlists: Build your own Copper & Clean-Energy dashboard.

Key Takeaway

Copper isn’t just another industrial metal; it’s the foundation of the AI age. From EV batteries to data centers and defense systems, copper connects everything powering the modern economy.

And for traders and investors, the message is clear: if AI and electrification are booming, copper demand is next in line.

Watch our latest newsreel to see how traders are positioning — and learn how to use Barchart’s tools to track the copper supercycle: