Core Viewpoint - The U.S. is stockpiling copper in response to potential tariffs, leading to a significant increase in domestic inventories, which may create a temporary glut in the market [1][2]. Group 1: Inventory and Market Dynamics - American warehouses currently hold 590,000 short tons of copper, the highest level in over 30 years, reflecting a nearly 300% increase in inventories over the past year [1][2]. - Traders are preemptively moving copper into the U.S. to avoid impending tariffs of 15%–25% on refined copper, resulting in a local surplus while global supplies tighten [2]. Group 2: Future Market Outlook - Goldman Sachs warns that the current inventory levels may be misleading, as once tariff uncertainties are resolved (expected by mid-2026), a significant amount of this copper could be released back into the market, potentially causing a price dip [3]. - Chamath Palihapitiya predicts that the demand for copper will surge due to AI and data center needs, suggesting that current inventories are minimal compared to future requirements, with a projected 130% increase in data-center power demand by 2030 [4]. Group 3: Investment Implications - Short-term, the U.S. faces a copper surplus driven by tariff fears, while long-term projections indicate a potential shortage due to rising demand from AI and electrification [4][5]. - For investors, the current stockpile may represent a temporary obstacle, but the long-term outlook suggests a structural shortage in the copper market [5].