Copper Demand Drives Up Prices as AI Industry Grows

The AI industry's growth is driving up demand for copper, and it may be the key metal in the mining sector's next investment cycle.

Copper is a crucial component in data centers, electric vehicles, and power grids, and its prices have risen by about 45% over the past year to nearly $6.50 per pound.

The Bank of America notes that copper has become the industry's 'new center of gravity,' with supply struggling to keep up with demand.

Four miners - Glencore, Freeport-McMoRan, Antofagasta, and South32 Ltd. - have been rated as buys by Bank of America, citing their potential for growth in copper production at acceptable capital intensity and execution risk.