The current copper boom, which has seen prices surge by 33% to US$6.53 per pound over the past year, may be nearing its peak. Concerns are growing over potential slowdowns in the construction of artificial intelligence (AI) data centers, a key driver of copper demand.
The metal's price has benefited from strong demand in the tech sector, particularly for data center infrastructure. However, uncertainties surrounding the pace of AI development and data center expansion could test copper's upward trajectory.
Industry experts warn that if these doubts materialize, the best of the copper rally might already be behind us. The metal's performance has been closely tied to the growth of AI, making it vulnerable to shifts in that sector.