Copper stocks are experiencing significant outperformance as an AI-driven supply squeeze intensifies across global markets. According to reports from BeInCrypto, copper hit an all-time high on COMEX on August 12, while the London Metal Exchange front-month spread blew out to a $370-a-ton premium, the widest since 2021, with inventories down for 42 straight days. The demand surge is primarily driven by AI infrastructure requirements, as a single one-gigawatt AI data center needs roughly 50,000 tonnes of copper, with data centers alone projected to add hundreds of thousands of tonnes of fresh demand annually. S&P Global and the International Copper Study Group both identify AI and electrification as the primary forces pushing the market into a structural deficit.
Among copper stocks, Freeport-McMoRan (FCX) is emerging as the standout performer, trading near $66.50 after a sharp year-to-date run. As reported by BeInCrypto, the largest US copper miner is showing a bullish continuation pattern that points toward $87, with Wall Street maintaining a Strong Buy rating and an average 12-month target of $75.33, about 13% above current price. The company's first-half net income rose 65% year over year, driven by its US mines as copper firmed, making it the purest large-cap way to own copper supply. Mining companies benefit from operating leverage, where a 10% rise in copper can lift profits far more than the tech giants that must purchase the metal.
According to BeInCrypto analysis, Freeport ran about 27% from its July 17 low to a peak on August 10, before entering a consolidation phase. The technical setup shows selling volume fading, resembling classic conditions of a bull flag and pole formation. A daily close above $68 would confirm the breakout and project the roughly 27% pole toward $87, while the floor is positioned at $65. Recent performance data shows Freeport gained 5.75% on August 4 compared to copper futures' modest 6% gain, demonstrating the stock's outperformance during the squeeze. The copper miner ETF COPX has quadrupled in assets in six months on heavy inflows, indicating institutional positioning in the sector.
As reported by BeInCrypto, copper miners significantly outperformed the broader market on August 4, with Southern Copper jumping 4.98% and Freeport gaining 5.75% compared to copper futures' modest 6% gain. The analysis reveals a simple BeInCrypto proprietary gauge showing copper miners against big tech has crossed above its trend line and maintained a rotation-into-miners signal through August. This represents a shift from the crowded tech sector, where Nvidia was seen flashing bearish chart signals and was even overtaken by AMD on money flow, with chip names leading the market lower on August 14 as Broadcom declined more than 5%.
