## Copper Demand Soars as AI Drives Data Center Growth
Wall Street is taking notice of the growing demand for copper, fueled by the metal's crucial role in data centers, which are the backbone of artificial intelligence (AI) operations.
A recent report by Jefferies predicts that global copper demand from data centers will skyrocket from 239,000 tons in 2023 to at least 450,000 tons annually by 2030. This surge in demand is expected to exacerbate an existing copper market deficit, leading to higher prices.
Morgan Stanley also anticipates a price increase, forecasting that copper prices will reach $10,500 per ton by the end of this year, a 12% jump. This prediction is based on the combined factors of rising AI and data center demand, coupled with limited supply.
Investors interested in capitalizing on this trend can consider stocks in the Global X Copper Miners ETF (COPX), particularly those of Canadian firm Solaris Resources (SLSSF), which boasts over 200% potential upside and a 100% buy rating. Filo Mining (FLMMF) is another attractive option, with a 25% upside potential and a 92% buy rating.
Exchange-traded funds (ETFs) offer another avenue for investment in this sector. Options include the Global X Copper Miners ETF, the Sprott Copper Miners ETF (COPP), and the iShares Copper and Metals Mining ETF (ICOP).
The surge in copper demand is directly linked to the AI boom. Goldman Sachs predicts a 15% rise in the S&P 500 by the end of 2024, driven by the exceptional performance of tech stocks, particularly those in the AI sector.
IQE, a supplier to Apple, also projects strong fiscal 2024 results, fueled by a robust order book due to the rapid expansion of the AI sector.
However, the AI boom has attracted criticism. Demis Hassabis, co-founder of Google DeepMind, expressed concerns that the surge in AI funding is creating exaggerated hype, overshadowing actual scientific progress in the field.