Jim Cramer predicted copper prices could reach $100 following a breakout above $75.74, but the breakout quickly failed, causing a pullback in Freeport-McMoRan (FCX) shares. Despite this, portfolio manager Kevin Simpson is buying the dip, citing strong demand from electrification and data center buildouts. Simpson has a clear exit strategy: if the Federal Reserve raises rates in the coming months, he will abandon the trade. The outlook depends on copper supply ramp-ups and Fed policy, with copper demand expected to grow significantly due to electrification and AI infrastructure needs.
The recent selloff in AI infrastructure stocks has extended to AI-linked industrial sectors, including copper producers like Freeport-McMoRan and Southern Copper. Goldman Sachs attributes current copper price movements largely to AI expectations, tho...
Freeport-McMoRan (FCX) appears undervalued relative to current copper prices, trading as if copper is priced at about $5.70 per pound, roughly 13% below the spot price near $6.60. The Grasberg mine is performing slightly ahead of its revised plan, an...
