Copper Emerges as Strategic Asset in 2026 Amid AI and Green Energy Demand
Copper prices are surging to record highs as industrial demand converges with technological disruption. The metal has gained 28% year-to-date, outpacing traditional haven assets like gold.
Three catalysts dominate the narrative: First, AI infrastructure buildout requires unprecedented copper wiring for data centers. Nvidia's latest GPU clusters use 40% more copper than previous generations. Second, EV production targets from Tesla and BYD imply 12% annual demand growth through 2030. Third, solar farm deployments under the Inflation Reduction Act will consume 5.4 million metric tons by 2027 - equivalent to 22% of current global supply.
The supply crunch is real. Chile's state-owned Codelco reported a 7% output decline last quarter, while BHP's Escondida mine faces labor disputes. Analysts at Goldman Sachs see copper reaching $15,000/ton by Q4 2026.
