Copper prices hit a record high on Wednesday and have gained around 30% in 2024, fueling rallies for top copper mining stocks Newmont and Freeport-McMoRan.
On Wednesday, copper futures gained for a fifth straight session, up more than 1% to $4.94 per pound, according to CME Group, hitting a record $5.17 per pound. The rising copper prices comes amid increasing concerns there could be insufficient supply as artificial intelligence and cryptocurrency related data centers, electric vehicles and renewable energy efforts drive fresh demand.
Earlier this year, Nvidia announced an increased use of copper in its artificial intelligence computing systems. Nvidia made the move to cut the power usage in its data center gear.
The International Energy Agency estimates that global data-center power demand will increase at a 15% compound annual growth rate to 2026. Meanwhile, JPMorgan estimates that this growth rate would require about 2.6 million metric tons of cumulative new copper demand by 2030. It also would translate to about 2% of expected global copper demand in 2030, the firm said.
This new demand for copper comes against an already forecast supply gap of 4 million metric tons by 2030, JPMorgan said.
Copper Prices: Mining Stocks In Buy Zones
Newmont stock gained 1.5% to 43.20 during market trade on Wednesday. The copper mining stock is in a buy zone, trading about 3% above an official cup-with-handle 41.30 buy point.
Newmont stock is working on its third consecutive monthly advance. The recent run has vaulted NEM shares 36% higher since the end of February.
Newmont stock has a 96 Composite Rating out of a best-possible 99. The copper mining stock also has a 79 Relative Strength Rating and an 83 EPS Rating.
Meanwhile, Freeport-McMoRan shares edged up to 53.62 Wednesday, after hitting a fresh 2024 high of 53.66 on Tuesday. That put it in a buy zone above the April 29 high of 52.52.
FCX stock has booked 10 weekly advances out of the past 11 weeks. The stock regained its 200-day moving average in early March and has surged 34% since then.
The stock has a 92 Composite Rating and a 93 Relative Strength Rating. The EPS Rating is 52.
Fellow copper mining stock, Southern Copper fell 0.8% to 122.85 Wednesday after hitting all-time highs of 125.07 on Tuesday, also clearing an April 29 high at 121. Shares are in a buy zone through 127.05. The copper stock has advanced 44% in 2024.
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