Copper Is Priced Like an AI Stock Now. What the Sell-off Means for Freeport-McMoRan.
Copper underpins much of our energy infrastructure and is becoming increasingly important for data centers, where AI clusters and massive campuses require up to 10 times the electrical power of traditional cloud infrastructure.
Because of its close ties to the power grid and data center hardware, copper stocks like Freeport-McMoRan(NYSE: FCX) have traded in tandem with AI stocks, riding the AI narrative's peaks and valleys. With the stock down 18% from its recent high, here's what investors need to know about Freeport-McMoRan.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Freeport-McMoRan's earnings got a lift from rising copper prices
Since the start of 2024, spot copper prices have risen from $3.90 per pound to $6.67 per pound, a 71% increase. The sharp rise comes as hyperscalers invest heavily in data centers and the U.S. looks to reshore manufacturing and other industrial capabilities.
Strong copper prices have driven strong results for Freeport-McMoRan, with operating income growing 19% to $2.4 billion in the third quarter. During the period, the company sold 749 million pounds of copper at an average realized price of $6.54 per pound. Freeport expects copper sales to jump another 17% in the fourth quarter.
What's next for Freeport-McMoRan
Freeport has had a volatile year and has become closely associated with the AI data center trade. While the stock has fallen 18% recently, it's still up an impressive 30% year to date.
Looking ahead, Freeport targets copper sales of 4.5 billion to 5 billion pounds annually by 2030 by increasing its use of leach technologies, expanding its Arizona facility, and pursuing other expansion projects. According to S&P Global, global copper demand is slated to increase by 50% by 2040.
Freeport will likely see volatility as investors scrutinize hyperscalers' capital expenditures, but it should continue to benefit from tailwinds from data center growth and the power grid build-out that supports these facilities.
Should you buy stock in Freeport-McMoRan right now?
Before you buy stock in Freeport-McMoRan, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Freeport-McMoRan wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflixmade this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $334,793!* Or when Nvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,257,420!*
Now, it's worth noting Stock Advisor's total average return is 874% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of November 1, 2026.
Courtney Carlsen has positions in S&P Global. The Motley Fool has positions in and recommends S&P Global. The Motley Fool has a disclosure policy .
Copper Is Priced Like an AI Stock Now. What the Sell-off Means for Freeport-McMoRan. was originally published by The Motley Fool
