Copper price bubble speculation intensifies amid AI-driven demand

Copper price bubble speculation gains momentum in 2025

Copper price bubble speculation gained traction as U.S. copper prices surged during 2025.
Analysts linked the rally to tariff fears that could lift U.S. prices above Europe and China.
Meanwhile, recycled copper prices followed the same upward trajectory across domestic markets.

Strong demand from AI data center construction further tightened copper supply expectations.
Developers expanded power grids to support hyperscale facilities across the United States.
As a result, copper demand reflected optimism tied to artificial intelligence infrastructure.

AI investment fuels copper demand and pricing pressure

Copper price bubble speculation also reflects massive capital flows into AI infrastructure.
CRE Daily reported data center investment drove 92 percent of U.S. GDP growth in early 2025.
Harvard economist Jason Furman highlighted the outsized economic impact of hyperscalers.

Amazon, Microsoft, Alphabet, Meta, and Nvidia increased annual capital spending near $400 billion.
Consequently, copper-intensive equipment demand surged across power and networking projects.
However, analysts warn that expectations may outrun sustainable long-term consumption.

Market signals raise caution flags for copper bulls

Veteran analyst John E. Gross compared current enthusiasm to the dot-com era.
He referenced Global Crossing’s aggressive fiber expansion during the late 1990s.
That buildout collapsed after demand failed to meet projections.

Comex copper prices peaked at $5.80 per pound in July before easing to $5.44.
Meanwhile, Comex premiums over LME prices narrowed sharply by late December.
These signals suggest speculative momentum may already cool.

 

SuperMetalPrice Commentary:

Copper price bubble speculation deserves attention as AI investment reshapes metals demand.
Short-term fundamentals support strength, yet history urges discipline during rapid expansions.
SuperMetalPrice expects volatility as traders weigh real consumption against future expectations.