Copper prices hit a four-month low on Friday, extending a five-week losing streak. Traders pointed to Nvidia’s leadership shakeup as a catalyst, though the decline began earlier. Goldman Sachs attributed the correction to positioning in AI-linked stocks rather than weakening fundamentals. Three-month copper on the London Metal Exchange fell 0.5% to $13,519 a metric ton, touching $13,456, its lowest since July 17.
Nvidia’s CEO Jensen Huang resigned abruptly on Thursday, triggering a 4.3% drop in shares. The stock fell another 2% on Friday. Analysts noted that Huang’s exit could slow AI-related financing deals, impacting copper demand. UBS analyst Timothy Arcuri highlighted Nvidia’s role in funding neoclouds and AI developers, suggesting a pause in such investments.
Despite the market’s reaction, physical copper demand in China shows no signs of slowing. The Yangshan copper premium hit a record $285 a ton, and Shanghai Futures Exchange warehouses saw stocks drop 18.3% this week to 27,642 tons, the lowest since December 23. Meanwhile, S&P Global projects copper demand to reach 42 million metric tons by 2040, driven by AI and defense sectors.
Analysts remain divided on the outlook. JPMorgan expects existing Nvidia commitments to remain unchanged, but new deals may face delays or higher costs. Goldman Sachs warned that subdued copper positioning could persist if equity markets anticipate slower AI spending, even as data center construction continues.