Key Takeaways
- Copper prices have surged to new record highs, exceeding $13,000 per metric ton on the London Metal Exchange, driven by acute supply disruptions, critically low inventories, and robust demand from the energy transition and data center sectors.
- Nvidia (NVDA) announced its next-generation AI chips are in full production, promising a fivefold increase in AI computing power, with strong demand for its H200 chips from China.
- AMD (AMD) showcased new MI455 and MI440X AI chips at CES, while previewing its MI500 processors set for a 2027 launch, aiming for a 1,000-fold performance improvement.
- CME copper futures also hit an all-time high, fueled by a scramble for physical metal and speculative interest.
The global financial markets are witnessing significant movements in both the technology and commodities sectors, with AI chipmakers unveiling advanced processors and copper prices rocketing to unprecedented levels. These developments underscore the intense innovation in artificial intelligence and persistent supply challenges in critical industrial metals.
Semiconductor Giants Push AI Boundaries at CES
Nvidia (NVDA) has confirmed that its next-generation AI chips are now in full production, with CEO Jensen Huang stating they will deliver up to five times the artificial intelligence computing power of previous chips for applications like chatbots. These new chips are part of the Vera Rubin platform, expected to debut later this year. The company also noted robust demand from China for its H200 chips, a predecessor to its current Blackwell chip, and is awaiting government approvals for export licenses.
Rival Advanced Micro Devices (AMD) also made significant announcements at the Consumer Electronics Show (CES). AMD (AMD) showcased its new MI455 and MI440X AI chips, with the MI455 processors designed for data center server racks for clients such as OpenAI. The MI440X targets enterprise clients lacking AI-specific infrastructure. Looking ahead, AMD (AMD) previewed its MI500 processors, slated for a 2027 launch, which are projected to offer a remarkable 1,000-fold performance leap over older processors. Meanwhile, Intel (INTC) also participated in CES, introducing its own Panther Lake chips.
Copper Market Surges Amid Supply Crisis
In the commodities market, copper prices have reached new all-time highs, with benchmark futures on the London Metal Exchange (LME) surging past $13,000 per metric ton and trading above $6 per pound. This record rally is largely attributed to mounting concerns over supply disruptions and critically low global inventories.
CME copper futures have also climbed to an all-time high, driven by a combination of strong physical demand, speculative "Fear Of Missing Out" (FOMO), and potential shifts in trade flows. Analysts point to several factors exacerbating the supply crunch, including ongoing mine outages at major sites like Grasberg and Kamoa-Kakula, as well as a recent strike at Chile's Mantoverde mine. Additionally, the threat of new U.S. tariffs on refined metals has encouraged traders to redirect shipments to the American market, further tightening supplies in traditional trading hubs. J.P. Morgan Global Research projects copper prices to average around $12,075 per metric ton for the full year 2026, anticipating a global refined copper deficit of approximately 330,000 metric tons.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.