Freeport-McMoRan: The Copper-AI Supercycle And Big Risks

As one of the world’s largest producers of copper (a metal with excellent electrical conductivity), Freeport-McMoRan (FCX) sits at the intersection of rising electricity demand (particularly from AI) and constrained global supply (copper prices have recently hit all time highs). This report reviews the big macroeconomic factors (e.g. electrification/AI and supply/demand) as well as company-specific considerations (e.g. Indonesia production, improving technology, and brownfield expansion), valuation, and risks, and then concludes with a strong opinion on investing in Freeport-McMoRan.