Copper is used in data centers for power cables, electrical connectors, power strips and more, Jefferies noted in an April 10 note.
It estimates that global copper demand by data centers will increase from 239 kt (thousand tons) in 2023 to at least 450 kt per annum in 2030.
"Hopes for GenAI / data centre copper demand growth are adding to investor bullishness on copper, against a backdrop of constrained supply," it wrote.
For those looking to buy into the sector, CNBC Pro screened for stocks in the Global X Copper Miners ETF.
In addition to the Global X Copper Miners ETF, those who want to invest in this sector via exchange-traded funds can consider the Sprott Copper Miners ETF and the iShares Copper and Metals Mining ETF.
Persons:
Jefferies, Morgan Stanley, It's
Organizations:
CNBC Pro, Copper Miners, Solaris Resources, Filo Mining, Miners, Metals Mining