Wall Street is getting very bullish on copper, despite the metal's recent rallies . The rallies have been fueled by supply risks and rising demand for it amid the energy transition and the artificial intelligence boom. Copper is used in data centers for power cables, electrical connectors, power strips and more, Jefferies noted in an April 10 note. It estimates that global copper demand by data centers will increase from 239 kt in 2023 to at least 450 kt per annum in 2030.
"Hopes for GenAI / data centre copper demand growth are adding to investor bullishness on copper, against a backdrop of constrained supply," it wrote. Demand for copper is also widely considered an indicator of economic health. The metal has a wide range of applications throughout construction and industry. It's also a critical component in electric vehicles, used in batteries, wiring, charging points and more.