The global economy is about to run on one critical metal: copper. From artificial intelligence (AI) data centers to electric vehicles (EVs), renewable energy, and grid modernization, copper sits at the center of nearly every major growth trend. The problem for investors, and the opportunity, is that supply isn’t keeping up.

Copper Demand Is Surging Across Multiple Megatrends

Copper is no longer just an industrial metal tied to housing and construction cycles. It’s now a foundational material for the modern economy.

AI infrastructure requires massive data center buildouts, each demanding significant copper wiring and cooling systems. EVs use up to 4 times as much copper as internal combustion engine vehicles. Renewable energy systems (e.g., wind turbines and solar farms) are heavily copper-intensive, while aging electrical grids need upgrades to handle rising power demand.

S&P Global summed it up clearly: the future isn’t just copper-intensive, it’s copper-enabled.

Supply Constraints Could Drive a Long-Term Bull Market

While demand is accelerating, supply growth is moving at a much slower pace.

It takes an average of 17 years for a newly discovered copper deposit to become a producing mine. That long development timeline creates a structural bottleneck, especially as environmental regulations and geopolitical risks add further delays.

In short, the world needs more copper now, but new supply won’t arrive fast enough. That dynamic could keep prices elevated and support a multi-year bull market for producers.

Southern Copper Offers Scale, Growth, and Income

Southern Copper (NYSE: SCCO) is one of the clearest ways to gain exposure to this trend.

The stock has delivered massive gains, climbing from around $40 in 2022 to as high as $223 before recently trading near $175. As one of the world’s largest low-cost producers, Southern Copper is well-positioned to benefit from rising prices.

The company also has visible growth ahead, with new mining projects expected to come online in 2027 and 2028. That pipeline could help extend production growth at a time when new supply is scarce.

Investors also benefit from income. Southern Copper recently paid a $1-per-share dividend, adding another layer of return potential.

Freeport-McMoRan Provides Global Scale and Analyst Support

Freeport-McMoRan (NYSE: FCX) is another top-tier copper name with global reach. After bottoming near $27.50 in April 2025, the stock surged to a high of $68.84 and is now trading around $61. That pullback could offer an attractive entry point if copper prices continue to climb.

Freeport owns stakes in 10 copper mines, including its flagship Grasberg operation in Indonesia. The company remains one of the largest producers globally, selling approximately 1.1 million metric tons of copper in 2025.

Wall Street remains bullish. Goldman Sachs recently initiated coverage with a Buy rating and a $70 price target, while Jefferies reiterated its Buy rating with a $76 target, citing plans to restart parts of the Grasberg project.

Investors also collect income while they wait, with a $0.15-per-share dividend payable May 1.

Copper ETFs Offer Diversified Exposure to Copper Stocks

For investors who prefer diversification, copper-focused ETFs provide broad exposure to copper stocks.

The Global X Copper Miners ETF (NYSEARCA: COPX) holds about 40 copper-related companies, including Southern Copper, Freeport-McMoRan, BHP Group, and Glencore. With a 0.65% expense ratio, the fund offers direct leverage to copper prices while spreading risk across multiple producers.

The iShares Copper and Metals Mining ETF (NASDAQ: ICOP) provides a slightly broader approach, combining copper exposure with other industrial metals. With a 0.47% expense ratio, it includes holdings such as BHP Group, Freeport-McMoRan, Teck Resources, and Newmont.

Now Is the Time to Invest in Copper Stocks

Copper is becoming one of the most strategically important commodities in the global economy.

With demand accelerating from AI, electrification, and infrastructure upgrades—and supply struggling to keep pace—the setup points to a prolonged imbalance. That could support higher prices and strong returns for well-positioned mining companies.

For investors, the takeaway is clear: copper isn’t just in another commodity cycle. And that’s why copper stocks may be one of the most compelling investment themes of the next decade.

And for investors, that message is loud and clear: copper is no longer just an industrial metal — it is a strategic asset. Used in everything from electric vehicles and data centers to power grids, renewable energy systems, and military hardware, copper demand is surging at a pace few commodities can match. At the same time, new supply is struggling to keep up.

Copper prices have surged, and many analysts believe this move could be just the beginning of a longer-term bull market. One of the biggest drivers behind this surge is the explosive growth of artificial intelligence infrastructure across the United States.

Massive AI data centers require extraordinary amounts of copper for power distribution, cabling, transformers, circuit boards, and cooling systems. According to BHP, a study of Microsoft Corp.’s (NASDAQ: MSFT) $500 million data center facility in Chicago found it used 2,177 tonnes of copper — equivalent to about 27 tonnes of copper for every megawatt (MW) of applied power.

According to the International Energy Agency (IEA), hyperscale data centers typically have power demand of 100 MW or more, with annual electricity consumption equivalent to that used by roughly 350,000 to 400,000 electric cars. As more hyperscale facilities are built to support cloud computing and AI workloads, copper demand accelerates even faster.

Looking further out, the numbers become staggering. BHP estimates that copper used in data centers globally could grow sixfold by 2050, rising from around half a million tonnes today to several million tonnes annually. At the same time, global electricity consumption from data centers could increase from roughly 2% of total demand today to as much as 9% by mid-century.

All of this puts extraordinary pressure on an already strained copper supply chain. New copper mines take years — often more than a decade — to permit, finance, and develop. Ore grades at many existing mines are declining, meaning producers must process more material just to maintain output. Meanwhile, geopolitical risks and resource nationalism in key producing countries add further uncertainty.

Making things worse, the United States still relies heavily on foreign sources for refined copper and copper concentrates. That dependence is a major reason why copper has now been elevated to a national security concern.

In response, policymakers are beginning to treat copper like they already treat semiconductors and rare earths — as a material that underpins both energy security and economic competitiveness. The U.S. Department of Energy has formally added copper to its Critical Materials List, recognizing that it faces a high risk of supply disruption while playing an essential role in energy technologies.

Inclusion as a critical material opens the door to targeted incentives, loan guarantees, and potentially streamlined permitting for projects that expand domestic mining, processing, and recycling capacity. At the same time, Washington is moving to align critical mineral frameworks across agencies, and draft updates to the U.S. Geological Survey’s critical minerals list now include copper — a shift that could unlock even broader federal support over time.

On the industry side, major producers are positioning themselves to capitalize on this policy tailwind. Companies such as Freeport-McMoRan (NYSE: FCX) are evaluating multi‑billion‑dollar expansion projects at existing operations in Arizona, with potential capacity additions that could materially lift U.S. copper output later this decade.

Meanwhile, new exploration and brownfield programs across states like Arizona, Utah, Montana, Nevada, and New Mexico underscore a renewed focus on rebuilding a domestic copper base. For investors, this convergence of policy support, supply constraints, and demand growth strengthens the case that copper’s rerating may have a long way to run.

For investors, this creates a powerful long-term opportunity in related ETFs such as:

Global X Copper Miners ETF (COPX)

The Global X Copper Miners ETF (NYSEARCA: COPX) offers targeted exposure to companies involved in copper mining around the world. With an expense ratio of 0.65%, COPX holds about 40 copper-related companies, including Lundin Mining (OTCMKTS: LUNMF), Glencore (OTCMKTS: GLNCY), Southern Copper (NYSE: SCCO), BHP Group (NYSE: BHP), Freeport-McMoRan, Ero Copper (NYSE: ERO), and Taseko Mines (NYSE: TGB).

COPX provides investors with direct leverage to rising copper prices while spreading risk across multiple producers and jurisdictions.

iShares Copper and Metals Mining ETF (ICOP)

Another diversified option is the iShares Copper and Metals Mining ETF (NYSEARCA: ICOP). With an expense ratio of 0.47%, ICOP offers exposure not only to copper miners, but also to companies producing other key industrial metals. Its holdings include Newmont Corp. (NYSE: NEM), Teck Resources (NYSE: TECK), along with BHP Group (NYSE: BHP), Freeport-McMoRan, and Lundin Mining (OTCMKTS: LUNMF).

The bottom line: copper is entering a new era of strategic importance. With demand exploding from electrification, AI infrastructure, and grid expansion — and supply struggling to respond — the stage is set for a potentially powerful multi-year bull market.

The Case for Staying Early

Copper is quietly becoming one of the defining bottlenecks of the AI and electrification era, and the market is only starting to price that in. With structural demand from data centers, EVs, and grid upgrades colliding with slow, capital‑intensive supply growth, every marginal tonne is becoming more valuable. For investors, owning quality copper miners and targeted ETFs now is essentially a call option on a long-duration supply squeeze in a metal the modern economy cannot function without.

Spoiler alert…the data is likely to be more of the same. Both the CPI and PPI readings are expected to come in between 2.6 and 3.0. That signals that the rate of inflation isn’t accelerating, but it’s not moving lower either.  

This matters to investors for two reasons. First, higher prices reduce the purchasing power of your dollars. So far, there hasn’t been a broad decline in consumer spending, but that depends on your income level. In 2026, investors are also having to weigh a job market that is showing cracks. That impact may not be reflected in consumer spending.  

Second, managing inflation is one part of the Federal Reserve’s dual mandate. Having a rate well above the Fed’s preferred 2% target is likely to be the reason it will keep interest rates steady at its next meeting in late January.  

However, investors can turn any change in economic data into opportunities. In this case, investors should look for companies that will likely be unfazed by price pressures.  

What You Need to Know About This Round of Inflation Data 

The CPI and the PPI both measure inflation. However, the CPI is a lagging indicator as it reports where prices have been. The PPI, by contrast, is a leading indicator. This goes back to basic economics.  

Companies experience price increases before the consumer does. In 2025, producer prices moved higher primarily due to rising commodity prices and tariffs.

But this time around, both the CPI and the PPI will be lagging indicators. You can thank the government shutdown for that. The information in this week’s PPI will be from November 2025. That means the data is likely to have already been reflected in the CPI.  

It’s an anomaly. But it’s something to be aware of. In this age of high-speed algorithmic trading, these reports can increase volatility.  

PepsiCo: Pricing Power in Action

PepsiCo (NASDAQ: PEP) remains a steady performer during inflationary stretches thanks to its pricing power and diversified product mix. The company’s strong brand equity across snacks and beverages—anchored by its Frito-Lay, Gatorade, and Pepsi brands—enables it to pass higher input costs to consumers without a significant decline in demand.

In the last two years, the company has had to manage higher input costs for sugar and packaging. However, the company has balanced those price increases with cost-control measures and supply chain efficiencies.

The company’s robust global footprint also insulates it from regional economic soft spots, while its growing lineup of zero-sugar and functional products supports pricing flexibility. Even with moderation in volumes, higher pricing has supported steady revenue growth and stable margins.

A core concern about PEP stock in the last year has been its valuation. However, at 16x forward earnings, the stock looks more attractive. And any help the consumer gets from tax refunds and economic growth could make the 12-month earnings projection of around 6.5% look very conservative.

Lifeway Foods: A Small Cap with Strong Margins

Lifeway Foods (NASDAQ: LWAY), best known for its kefir yogurt products, offers a niche play on resilient consumer demand for nutritious, probiotic-rich foods. The company has maintained strong gross margins—above 25% in recent quarters—despite volatile dairy prices. Lifeway’s success lies in strategic sourcing and a focus on value-added, health-oriented products that appeal to a loyal, premium-minded customer base.

The company’s agile cost structure allows it to pivot quickly to changing market conditions, which is vital when inflation pressures squeeze smaller brands. In addition, its expanding distribution across major retailers, along with steady international growth, creates multiple levers for long-term expansion.

Investors should note that the microcap nature of this stock adds volatility, but that also brings upside as the company scales. As consumers prioritize health over discretionary spending, LWAY looks well-positioned to deliver inflation-resistant growth. And with expected earnings growth of around 28% in the next 12 months, the consensus price target of $34 as of Jan. 9 may be too low.

Freeport-McMoRan: A Hedge Against Rising Input Costs

Freeport-McMoRan (NYSE: FCX) remains one of the best natural hedges against inflation. The company is a leading global producer of copper, the metal that underpins everything from EVs to data centers. When inflation persists, commodity prices tend to rise, and that often benefits miners like FCX.

With copper demand expected to outstrip supply through the decade, Freeport is well-positioned to capitalize on structural shortages. It’s also an indirect play on gold, which will continue to be a debasement trade in 2026.

Operationally, FCX has managed costs effectively even as mining inputs and labor expenses rise. The company’s balance sheet remains strong with relatively low debt, giving it flexibility to invest in new production and shareholder returns. With inflation sticky and industrial activity stabilizing in China, copper prices could stay firm or move higher in 2026. That makes FCX not just a cyclical play, but a strategic inflation hedge in diversified portfolios.

The Bottom Line: Staying Invested in Pricing Power

Sticky inflation doesn’t have to derail portfolios. The key is holding companies that can pass along higher costs or benefit directly from rising prices.

• PepsiCo shows how brand strength supports pricing discipline
• Lifeway demonstrates the advantage of flexible, margin-conscious operations
• Freeport-McMoRan captures upside from commodity-driven inflation

Collectively, these stocks highlight resilience across distinct sectors: consumer staples, small-cap growth, and natural resources, providing investors with multiple ways to stay on the right side of persistent price pressures.

However, there are reasons to believe that Freeport-McMoRan may outperform the industry in 2026. First, much of the company’s laggard performance is due to the mudslide at its Grasberg mine that shut down a significant part of the company’s operations. That situation is expected to improve. 

Second, demand for copper is moving from being cyclical to structural. The world will need copper for everything from data centers and the updating of our electrical grid. And it’s still one of the most important metals for renewable energy applications and the broader digital economy, including the rise of artificial intelligence (AI) applications.  

That’s why many investors believe copper prices may be one of the best ways to play the metals trade in 2026 and beyond. In that case, you’ll want to consider FCX stock as a lagging leader with plenty of upside.  

Freeport-McMoRan May Be an Attractive Catch-Up Trade 

Here’s a chart that illustrates what I mentioned in the lead to this article. Investors in the COPX ETF are smoking investors in FCX stock.  

However, while what has happened in the past is instructive, investing is typically about where the market is going. In the case of Freeport-McMoRan, the story centers around its Grasberg mine. The mine was shut down in September after a mudslide halted production. 

FCX stock dropped approximately 22% in a single session after the news but has made up for that loss and even moved higher. That’s because Freeport has performed the requisite safety assessments and has announced a phased restart for the second quarter of 2026. Better still, the company has said partial output is already resuming in unaffected parts of the mine. 

The company expects the Grasberg site to be back to full production – 1.6 billion pounds of copper and 1.3 million ounces of gold annually – in 2027 with that level of production running through 2029.  

Well-Protected Margins Add to the Bull Case 

Another reason to be bullish on FCX stock is the efficiency of its operations. The spot price of copper has gone back over $5 per pound. However, through its North American assets – such as the Morenci mine in Arizona, the company can mine for around $1.50 per pound.  

That kind of spread creates a low breakeven point, which can point to outsized profits if the price of copper continues to rise, as expected. And those gains will go directly to the company’s bottom line, which is good news for future earnings growth.  

FCX Stock Valuation: How Concerned Should You Be?  

For all the positives surrounding Freeport-McMoRan, the valuation is an area of concern. As of December 15, FCX stock trades at 34x earnings. That’s a premium of about 6.8% from its historic average. It also trades well above the average of the Metals & Mining industry, which is around 22x.  

However, with the surging copper trade, FCX has the opportunity to grow into its valuation. Analysts forecast earnings growth of over 28% in the next 12 months. Plus, FCX trades at a forward price-to-earnings (P/E) ratio of around 28.2x, which trims much of the premium out of FCX stock.  

The consensus price target for FCX stock is $50.32, which is about 5% above its closing price on December 12, 2025. However, since Freeport-McMoRan outlined restart plans for its Grasberg mine, several analysts have raised their price targets. And many of those targets are well above the consensus price.  

The Chart Shows Short-Term Froth but Bullish Upside 

But now for the most important question. Is FCX stock a buy right now? The chart has been in a steady uptrend that investors like to see. However, there appear to be signs of short-term froth that may mean it’s time to wait for a better entry point.  

Price has broken above a year‑long downtrend and now trades well above the rising 50‑day moving average, confirming a bullish intermediate trend. Relative strength vs. the COPX copper‑miners ETF has improved, but FCX is still lagging the group’s powerful move, suggesting room for catch‑up if copper’s bull run continues.   

RSI is knocking on the 70 level, indicating overbought conditions after a strong multi‑month rally, so a pause or pullback to the moving average would be normal. For longer‑term investors, that kind of dip toward prior consolidation zones could be an opportunity to accumulate, while short‑term traders may want tighter stops in case momentum cools. 

FCX Stock is a Stock to Own, Not Trade 

Long-term demand for copper makes mining stocks like Freeport-McMoRan an integral part of an investor’s portfolio for 2026 and beyond. The company’s Grasberg mine won’t be back to full production until 2027. However, investors who wait for that confirmation will miss the inflection point.  

If you’re not in FCX stock, this is a time to start a position and use any dips to add to your position. And if you currently own the stock, it’s a worthwhile hold. With a high potential for future earnings growth for 2026 and beyond, the company’s dividend of 15 cents per share looks safe, which rewards you for holding the stock.  

A better idea may be to look at the next tier of stocks. These stocks have still delivered growth in 2025. These may have not been the eye-popping gains of a stock like Palantir Technologies Inc. (NASDAQ: PLTR). But they may have a better valuation, and analysts project strong earnings growth in 2026.  

These are stocks that you would have been thankful to own in 2025. More importantly, they’ll continue to be strong growth stocks in 2026. Whether you’re a buy-and-hold investor or a swing trader, you’ll be off to a good start in the new year by having a position in these stocks.  

Strong Growth Stocks: NVIDIA 

NVIDIA Corp. (NASDAQ: NVDA) has had a good year by any measure. The company has everything that investors want. It shows strong year-over-year growth in revenue, earnings, and margins.  

But with NVDA stock “only” up 34.5% in 2025, some investors suggest that the company’s best days are behind it. In this analyst’s opinion, their concerns are based on a faulty premise.  

As NVIDIA’s recent quarter showed, the company has a backlog for quarters to come. Sure, competitors are entering the fray. But that’s largely because the pie is getting bigger, not because NVIDIA is losing its share of that pie. It’s still the undisputed leader in the artificial intelligence (AI) buildout that’s still in its infancy.  

Analysts forecast 46% earnings growth in the next 12 months, which goes a long way to dispelling any concerns about the company’s forward P/E ratio of around 64x.  

That’s why NVDA stock is one stock to be thankful to own now and into the future.  

Strong Growth Stocks : Eli Lilly 

Eli Lilly & Co. (NYSE: LLY) is up more than 42% in 2025 as the company has vaulted into the lead in the weight loss drug market. The company has committed over $50 billion into its global manufacturing footprint to ensure it maintains the lead in this critical market.  

But there’s more to the LLY stock story to keep it in this category of strong growth stocks for years to come. The company’s oral version of its GLP-1 drug just moved out of Phase 3 trials. This will be a game-changer that will allow the company to press its advantage in this market. Lilly also has a deep pipeline that includes many oncology drugs that will likely become available in the next few years. 

Analysts are forecasting 32% earnings growth in the next 12 months. And despite the fact that it trades for over $1,100 per share as of November 26, several analysts believe it can run much higher. In fact, on November 24, analysts from Bernstein gave LLY stock a $1,300 price target.  

Strong Growth Stocks: Freeport-McMoRan 

Gold has been one of the best-performing asset classes in 2025. That’s one reason to consider a mining stock like Freeport-McMoran Inc. (NYSE: FCX). A better one, however, is the expected growth in copper.  

Demand for copper is a narrative that’s been delayed, but it still exists. Copper will be needed to build the AI infrastructure. And that’s not to mention its utility in electric vehicles and the updating of our aging electric grid.  

Freeport-McMoRan is one of the leading copper miners in the world. FCX stock is only up about 11% in 2025, and analysts are only forecasting about 10% upside. That wouldn’t seem to qualify as strong growth. However, it’s just as likely that analysts aren’t accounting for the potential explosive leap in copper prices. 

Conclusion 

NVIDIA, Eli Lilly, and Freeport-McMoRan are three strong growth stocks for 2026. But there could be several more names that can be added to the list.  

For this list, I used a stock screener to identify stocks that were expected to grow earnings by at least 20% over the next 12 months. Earnings growth is one of the most accurate predictors of future stock price performance.  

It’s a good reminder to investors that you need to have your own signals that help you filter out the noise that exists during volatile times.  

In fact, according to BHP Insights, demand is expected to increase by approximately 70% between 2021 and 2050. This is due to infrastructure needs, power grid demand, and data centers that support artificial intelligence. In addition, as noted by the Financial Times, “The world’s largest miners have been rushing to increase their exposure to high-growth copper assets as increased demand is expected to create a shortage.” 

With regards to artificial intelligence data centers, BHP estimates that “the copper used in data centers globally will grow six-fold by 2050 – from around half a million tonnes a year of copper today, to around 3 million tonnes a year by 2050. That uplift is roughly equivalent to the combined annual output of the world’s four largest copper mines today.”

Aside from AI, growing demand will come from energy transition, the adoption of electric vehicles, the growth of the digital economy, and insufficient copper mine development. In fact, BloombergNEF says the copper industry will need an investment of up to $1.2 trillion in the next 25 years just to meet demand. 

In addition, copper is experiencing historic backwardation, according to Mining.com. All thanks to falling copper inventories and potential U.S. tariffs.

The cherry on top…copper price forecasts are still rising.

According to Chile’s Cochilco, it sees average copper prices in 2025 of $4.45 per pound and $4.55 per pound in 2026, both from a prior view of $4.30 per pound.

Analysts at Citi predict that copper could rally to $12,000 per metric ton over the next six to 12 months. The firm cited “unprecedented mine outages, still strong demand and supportive macro trends,” as noted by Seeking Alpha. 

All of which is a solid catalyst for copper stocks. Here are two picks to consider.

Copper Stocks to Buy: Freeport-McMoRan

When it comes to investing in copper stocks, Freeport McMoRan (NYSE: FCX) is a solid bet. After bottoming out at around $28 in April, FCX stock is now back to $39.60. However, with copper demand outweighing supply, we do expect FCX stock to rally even higher.

Recent earnings weren’t too shabby either. EPS of 50 cents beat estimates by six cents. Revenue of $6.97 billion, up 2.7% year over year, beat by $240 million. Plus, analysts at HSBC just upgraded FCX to a buy rating with a price target of $50 per share.

According to the firm, as noted by CNBC, the “rating change and increase in the company’s estimates over the next two years were due to higher metals price assumptions. These higher prices have stemmed from recent market volatility and significant supply disruptions, especially in the case of platinum and copper. Freeport-McMoRan has probable mineral reserves in copper, gold and molybdenum.”

Copper Stocks to Buy: Global X Copper Miners ETF

Another top way to trade a copper rebound is with the Global X Copper Miners ETF (COPX). With an expense ratio of 0.65%, the ETF allows you to diversify with 40 copper-related holdings, including Lundin Mining, Glencore, Southern Copper, BHP Group, Freeport-McMoRan, Ero Copper, and Taseko Mines to name a few.

Since bottoming out at around $30.60 in April, the COPX ETF rallied to a high of $66.20. Now back to $57.43, we’d like to see the ETF retest its prior high again in the short term.

Copper Stocks Are a Multi-Year Play

Materials and mining stocks are notoriously cyclical in nature. That’s another reason to be bullish about this moment in time. Demand for copper is likely to be strong through the end of this decade, and perhaps beyond. With copper prices likely to accelerate, this is a good time to bet on related stocks and ETFs.