Copper (Cu) has been one of the hot commodities in 2025, with the industrial metal increasingly used in AI infrastructure, especially in data centres, for power distribution, cooling systems, and high-speed interconnects. AI-optimised data centres can use up to 3–5 times more copper than traditional ones, significantly boosting Cu demand. This makes copper a key indirect beneficiary of the AI boom, alongside other critical materials. We expect demand to outstrip supply over the coming decades, providing a great a tailwind for prices. The likes of BHP hold a similar view, having beefed up their copper exposure through Oz Minerals a few years ago, while more recently, they bid for copper giant Anglo American, although they were ultimately unsuccessful – a deal valued at £31.1 billion.
- While some brokers have put out a sell on SFR, and we do feel it’s fully priced with Cu at current levels, the medium term dynamics in the space remain incredibly supportive.
The Market Matters site shows 3 Buys, 8 Holds and 2 Sells, however, if Cu rises by another 10-20%, SFR will no longer appear stretched from a valuation perspective. While there are more factors at play than just AI in determining the underlying price of copper, it is providing a great tailwind.
- We continue to like SFR for copper exposure to growth in data centres and global electrification.
MM is long and bullish SFR
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