Freeport-McMoRan shares have fallen 18% from their recent high as the copper miner trades alongside AI stocks. Rising copper prices lifted its third-quarter results, and The Motley Fool says data center growth should continue to benefit the miner.
Freeport-McMoRan stock is down 18% from its recent high, and the miner has moved in tandem with AI stocks. The Motley Fool ties this to copper's close links to the power grid and data center hardware.
Copper prices drive Freeport's earnings
Since the start of 2024, spot copper prices have risen from $3.90 per pound to $6.67 per pound, a 71% increase. Hyperscalers are investing heavily in data centers, and the U.S. is looking to reshore manufacturing and other industrial capabilities.
Strong copper prices drove strong results. Freeport's operating income grew 19% to $2.4 billion in the third quarter, according to the article. The company sold 749 million pounds of copper at an average realized price of $6.54 per pound during the period.
Freeport targets higher output by 2030
Freeport expects copper sales to jump another 17% in the fourth quarter. Looking further out, it targets copper sales of 4.5 billion to 5 billion pounds annually by 2030 by increasing its use of leach technologies, expanding its Arizona facility and pursuing other expansion projects.
According to S&P Global, global copper demand is slated to increase by 50% by 2040.
The stock is still up 30% year to date, though the article expects Freeport will likely see volatility as investors scrutinize hyperscalers' capital expenditures.
Source: The Motley Fool
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