Despite the recent rally in copper prices, Wall Street is extremely bullish on copper. The rally has been fueled by supply risks and rising demand amid the energy transition and artificial intelligence boom. Copper is used in data centers for things like power cables, electrical connectors and power strips, Jefferies noted in an April 10 memo. We estimate that global copper demand from data centers will increase from 239,000 tonnes per year in 2023 to at least 450,000 tonnes per year in 2030. “Our analysis shows that this potential demand growth could exacerbate potential copper market deficits and ultimately lead to copper market deficits as prices rise,” Jefferies said. writes the analyst. Data centers house the vast amount of computing power needed for AI workloads, and that need will continue to grow as many technology companies rapidly develop infrastructure for artificial intelligence. Probably. Large language models require large amounts of data center capacity. Morgan Stanley predicted in a recent note that prices for the metal will reach $10,500 per tonne by the fourth quarter of this year, representing an increase of about 12%. “Expectations for growth in GenAI/data center copper demand are increasing investors’ bullish stance on copper against a backdrop of supply constraints,” the paper wrote. Copper demand is also widely considered an indicator of economic health. This metal has a wide range of applications across construction and industry. It is also a key component in electric vehicles, used in batteries, wiring, charging points, etc. For those considering entering this sector, CNBC Pro screened stocks for the Global X Copper Miners ETF. The following stocks are rated Buys by more than 50% of the analysts they cover, have average price target increases of more than 10%, and are covered by at least 5 analysts. . Canadian company Solaris Resources stood out for having over 200% upside potential (highest on the list) and a 100% buy rating. Philo Mining was also selected, with analysts giving it a 92% Buy rating with 25% upside potential. In addition to the Global
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