Copper Prices Surged by AI Boom Expectations, Not Just Manufacturing

Copper prices are no longer just driven by global manufacturing expectations. The metal's value is now being influenced significantly by the AI boom, particularly in terms of investment in data centers, electric grids, and power infrastructure.

According to Goldman Sachs commodities strategists led by Lavinia Forcellese, 'AI has become a key narrative shaping expectations for future power, grid, and copper demand.' The firm's model shows that AI-related expectations have overtaken traditional drivers like China's growth outlook, US dollar moves, and physical market tightness as the largest contributor to copper's cumulative price gains since early 2025.

Copper is used extensively throughout the AI ecosystem, from data centers' electrical wiring to transformers, switchgear, and high-voltage transmission lines. Goldman Sachs argues that future infrastructure needs, not current consumption, are becoming increasingly important in copper markets.