In the race toward AI, copper is the strategic edge the world overlooks

There are moments in financial history when the world is so distracted by the headlines that it completely misses the real story unfolding underneath. I have watched this happen over and over across multiple bull and bear cycles, from the dot-com mania to the housing euphoria to the crypto rush. Today, the spotlight has shifted again. Investors are mesmerised by NVIDIA’s $5 trillion ascent and the rapid rise of AI giants. Screens are glowing, tweets are exploding, and FOMO has become a global emotion.

Yet over these 20+ years, markets have taught me one thing:

Wealth isn’t made by chasing the star of the show.
It’s made by owning what gives the star its power.

Just like the gold rush of the 1800s, the miners bought dreams, but the pick-and-shovel makers built dynasties. The investors who understood this captured the invisible advantage. Today, that invisible advantage is a humble metal we walk past every day: copper. Underneath every AI breakthrough and every electrified innovation lies a copper wire, quietly carrying power to the future.

Copper doesn’t trend on social media. It doesn’t grab headlines. But even the most advanced AI model stays useless until electricity flows and copper is what carries that flow.

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Think about this: a single hyper-scale data centre uses more power than a small city. Every watt travels through copper-heavy cabling, transformers, and cooling systems. As technology becomes smarter and more distributed, our dependence on copper doesn’t plateau; it rises.

Electric vehicles need two to three times more copper than petrol vehicles. Charging stations add another layer of demand. And renewable energy, though clean at source, relies on copper-driven networks to transmit power into homes, industries, and economies. Copper is everywhere… which is why it is so easy to ignore.

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A shift in demand without a matching shift in supply

The demand picture is clear. The supply picture is not. Major mines are ageing. Ore grades are falling. Approvals that once took months now take years. And production remains concentrated in just a few regions, particularly Chile, Peru, and DR Congo, where political and regulatory uncertainty can tighten the market overnight.

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Note: Million Metric Tonnes (MMT)
Source: mining-technology.com

China adds another layer; it refines a major share of the world’s copper. So even when ore is mined elsewhere, it often relies on China before becoming usable metal. Structural imbalance isn’t a forecast; it is already forming.

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These factors don’t guarantee a one-way rally, but they do suggest a decade where tight supply and rising strategic value travel together more frequently.

India’s ambition depends on metal, not just code

India is aiming for high AI leadership, EV penetration, renewable acceleration, semiconductor momentum, and a powerful digital economy. These goals will define our future. But none of them move forward if copper supply stumbles. Any shortage directly increases project costs and slows down economic progress.

To secure our ambitions, we must focus on three priorities:
• Access to global copper resources
• Stronger domestic refining and cable manufacturing
• A serious push into recycling and circular metals

If we move early and decisively, India can shift from dependency to influence, becoming a competitive force in Asia’s copper ecosystem.

A clearer path for investors

AI deserves excitement — it represents breakthrough innovation. But its most celebrated companies already reflect a future priced into their valuations. Copper, meanwhile, powers that same AI revolution data centres, automation, and electrification, yet remains valued far more modestly.

This isn’t about avoiding AI. It’s about investing in the backbone that AI and the broader economy cannot advance without.

Short-term volatility may test patience, but the structural direction remains intact. For investors who look beyond noise and focus on fundamentals, copper offers a grounded way to participate in the next decade of transformation without paying a premium for hype.

(The author,
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)