AI Server Demand Sends Copper Foil Stocks Soaring
The copper foil industry is experiencing a surge in demand due to AI server deployments, particularly for high-end copper foil. Market estimates project that by 2026, demand for premium copper foil dedicated to AI servers will reach approximately 24,000 tons, up roughly 260% year over year.
A total of 14 stocks linked to the copper-foil sector have been unanimously forecast by institutions to post year-over-year net profit growth exceeding 100% in 2026. However, as several copper-foil companies had already released their 2026 interim reports, it becomes clear that the real divergence in this market cycle hinges on three key factors: whether HVLP is already ramping up mass production, whether price hikes can be passed on to processing fees, and how low last year's profit base was.
Tier 1 companies, such as Defu Technology and Tongguan Copper Foil, have already begun mass-producing HVLP copper foil. Their interim reports show significant revenue growth, with Defu Technology posting a net profit of RMB 263 million, up 580.66% year over year.
Tier 2 companies, like Jiayuan Technology, have achieved technological breakthroughs in high-performance products such as RTF copper foil and HVLP copper foil, but mass production has not yet been verified. Their growth is largely driven by rising demand for lithium-ion battery copper foil rather than AI server-grade copper foil.
Tier 3 companies, including Far East Shares, have only recently revalued under the 'AI concept' and are still in the R&D and validation stages for HVLP copper foil. Their net profit growth forecast is heavily influenced by an extremely low base.