Benzinga·2026-01-15 00:13Core Viewpoint - Investor Chamath Palihapitiya predicts that copper will experience a significant price increase, going "parabolic" by 2026 due to supply shortages and geopolitical strategies emphasizing national security and economic reshoring [1][3] Supply Dynamics - The Trump administration reclassified copper as a critical national security asset, imposing a 50% tariff on imported copper to protect domestic interests, which has led to a supply squeeze as the U.S. aims to rebuild its copper smelting and refining infrastructure [2] Demand Drivers - Copper is described as an essential material found in various applications, including data centers, chips, and defense systems, highlighting its ubiquitous demand across multiple sectors [4] - The demand for copper is further driven by the increasing Pentagon spending on defense systems and the ongoing energy transition towards electrification and grid modernization [6] Market Performance - Copper futures have reached record highs of approximately $6.10 per pound, reflecting market concerns over supply risks [5] - Investors are encouraged to consider both ETFs for broad exposure and individual mining stocks for targeted investments in domestic copper producers such as Southern Copper Corp., Rio Tinto Plc, and Freeport-McMoRan, Inc. [5][6]