Forget AI Stocks: This Copper Miner Could Be the Hidden AI Winner

Group 1 - The focus on technology stocks related to artificial intelligence (AI) often overlooks the essential supply chain components, such as copper, which is critical for AI technologies, highlighting the investment potential in Southern Copper (NYSE: SCCO) [1] - Southern Copper is a copper mining company that requires significant time and capital investment to develop mines, including obtaining approvals and restoring sites post-extraction [2] - The current demand for copper is driven by AI, with Southern Copper estimating that global copper inventories will only cover eight days of demand by the end of Q3 2025, indicating a potential supply deficit [3] Group 2 - Copper prices are influenced by supply and demand dynamics, with rising demand leading to higher prices; despite a decrease in production to 235 million tons in Q3 2025 compared to Q3 2024, Southern Copper still achieved higher sales due to rising copper prices [4] - Southern Copper's stock price has increased by 95% over the past year, reflecting investor awareness of copper market trends; however, resolving the supply-demand imbalance will take time, with new mines expected to open in 2027 and 2028 [5] - The company has plans for additional copper projects beyond the upcoming mines, indicating a long-term growth strategy in the copper market [5][7]