Wall
Street
is
getting
very
bullish
on
copper,
despite
the
metal’s
recent
rallies
.
The
rallies
have
been
fueled
by
supply
risks
and
rising
demand
for
it
amid
the
energy
transition
and
the
artificial
intelligence
boom.
Copper
is
used
in
data
centers
for
power
cables,
electrical
connectors,
power
strips
and
more,
Jefferies
noted
in
an
April
10
note.
It
estimates
that
global
copper
demand
by
data
centers
will
increase
from
239
kt
(thousand
tons)
in
2023
to
at
least
450
kt
per
annum
in
2030.
“Our
analysis
shows
that
this
potential
demand
growth
will
exacerbate
an
underlying
copper
market
deficit,
ultimately
leading
to
higher
prices,”
Jefferies
analysts
wrote.
Data
centers
house
vast
amounts
of
computing
power
needed
for
AI
workloads,
and
that
need
is
set
to
grow
as
many
tech
companies
are
rapidly
developing
infrastructure
for
artificial
intelligence.
Large
language
models
require
a
lot
of
data
center
capacity.
In
a
recent
note,
Morgan
Stanley
predicted
that
the
price
of
the
metal
will
reach
$10,500
per
ton
by
the
fourth
quarter
of
this
year
—
representing
around
12%
upside.
“Hopes
for
GenAI
/
data
centre
copper
demand
growth
are
adding
to
investor
bullishness
on
copper,
against
a
backdrop
of
constrained
supply,”
it
wrote.
Demand
for
copper
is
also
widely
considered
an
indicator
of
economic
health.
The
metal
has
a
wide
range
of
applications
throughout
construction
and
industry.
It’s
also
a
critical
component
in
electric
vehicles,
used
in
batteries,
wiring,
charging
points
and
more.
For
those
looking
to
buy
into
the
sector,
CNBC
Pro
screened
for
stocks
in
the Global
X
Copper
Miners
ETF.
The
following
stocks
have
buy
ratings
from
50%
or
more
of
analysts
covering
them,
average
price
target
upside
of
10%
or
more,
and
are
covered
by
at
least
five
analysts.
Canadian
firm
Solaris
Resources
stood
out
for
having
more
than
200%
potential
upside
—
the
highest
in
the
list
—
and
a
100%
buy
rating.
Filo
Mining
also
made
the
cut,
getting
25%
upside
from
analysts
and
a
92%
buy
rating.
In
addition
to
the
Global
X
Copper
Miners
ETF,
those
who
want
to
invest
in
this
sector
via
exchange-traded
funds
can
consider
the
Sprott
Copper
Miners
ETF
and
the
iShares
Copper
and
Metals
Mining
ETF.
