Commodities
Copper Demand Drives Mining Industry Shift Amid AI Trade
The AI trade's demand for copper is driving investment in mining companies.
Copper is essential for data centers, electric vehicles, and power-generation capacity, making it a key input for the industry's growth.
Bank of America notes that copper has become the 'new center of gravity' in the mining industry, with prices up 45% over the past year to nearly $6.50 per pound.
The bank predicts copper deficits in both 2026 and 2027, leading it to raise its forecast from $12,889 per metric ton to $15,251.
Four miners, Glencore, Freeport-McMoRan, Antofagasta, and South32, are favored by Bank of America for their potential growth in copper production at acceptable capital intensity and execution risk.