Copper has reached a new record high as artificial intelligence data center demand continues to drive the metal to unprecedented levels. According to reports from CNBC TV18, this represents a significant milestone for the commodity as it responds to the growing infrastructure needs of the AI sector. The latest data shows silver futures and copper futures have been rallying hand-in-hand as the metals market draws a clear distinction between safe-haven demand and hard-infrastructure demand, with the AI buildout showing up particularly strongly on the copper-and-silver side.
Citigroup has set a target of $15,000 per metric ton for copper, representing approximately 7% above the metal's Tuesday close. As reported by CNBC TV18, the investment bank believes there is still significant room for copper prices to continue rising, supported by the sustained demand from AI data centers. The bank's analysts noted that resiliency throughout the chaos — "despite geopolitical risk, private credit concerns and AI disruption" — is "supportive of our view."
The surge in copper prices is primarily attributed to artificial intelligence data center demand, which continues to drive the metal to new records. According to CNBC TV18, this infrastructure-driven demand represents a fundamental shift in copper consumption patterns, supporting the investment bank's bullish outlook for the metal. Data centers require power, wiring, cooling systems, backup equipment, grid upgrades, and physical construction, making copper the obvious beneficiary of this massive infrastructure buildout.
The metals rally comes amid broader market strength, with first quarter profits for S&P 500 companies growing 27% throughout the season, far above the 12% analysts had expected. Roughly 83% of the 440 S&P 500 companies that reported earnings up to May 8 have beaten analyst estimates. The 10-year Treasury yield has edged up toward the 4.5% level, currently at 4.47%, while the 30-year yield remains above 5% psychological level. Despite geopolitical turmoil including the war in Iran and US-China relations, markets are showing resilience driven by strong earnings and AI adoption benefits.
