Copper Is Priced Like an AI Stock Now. What the Sell-off Means for Freeport-McMoRan.

Copper has climbed 71% since early 2024 to $6.67 per pound, yet FCX has dropped 18% recently, a divergence that sits at the center of the debate over the stock's next move.

The rally in the metal traces to AI data center expansion and industrial reshoring. Demand is the long-term pillar: global copper demand is projected to rise 50% by 2040.

FCX's fundamentals have kept pace with the price. Operating income grew 19% in Q3, supported by strong copper sales. That combination of rising profit and a falling share price is what's drawing buy-the-dip arguments from long-term investors.

The near-term risk is tied to hyperscaler capital expenditure trends. Interpretation: because copper is being priced like an AI-linked asset, the stock may trade on sentiment about data center spending as much as on the commodity itself. That would explain how shares can fall 18% while copper sits near $6.67 and operating income expands.

SPGI is listed alongside FCX in this story's classification, but the supplied reporting offers no company-specific data on it, so FCX is the actionable name here.