Forget AI Stocks: This Copper Miner Could Be the Hidden AI Winner

Many investors are so focused on the technology stocks that support artificial intelligence (AI) that they overlook the supply chain that allows AI to exist. Yes, Nvidia is an exciting chipmaker, and companies like SoundHound make exciting products powered by AI. But none of that would be possible without something as simple as the industrial metal copper. That's why investors might want to examine miner Southern Copper (NYSE: SCCO).

What does Southern Copper do?

Southern Copper is a copper miner, as noted. But it is important to understand what it means to be a miner. A location must contain valuable minerals; approval to develop a mine must be obtained; the mine must be built and operated; and the location must be returned to its natural state when the mine is depleted. It is a time-consuming and highly capital-intensive process.

Image source: Getty Images.

No company can simply open up a copper mine overnight. In fact, supply and demand are major factors to monitor in commodity markets like copper. Right now, AI is driving a lot of demand. At the end of the third quarter of 2025, Southern Copper estimated that global copper inventories covered only eight days of demand. The market could actually fall into a deficit, with more demand than supply.

Copper responds to supply-and-demand imbalances like any other commodity. Rising demand generally leads to rising prices, particularly if supply isn't keeping pace. This dynamic is already helping Southern Copper, as the 235 million tons of copper it produced in Q3 2025 was a lower number than in Q3 2024. However, rising copper prices still allowed it to generate higher sales.

More production on the way

Investors are aware of copper market trends and have pushed Southern Copper's stock price up by 95% over the past year. However, fixing the supply/demand imbalance won't happen quickly, if it happens at all. Southern Copper's long-term opportunity is in opening new copper mines, with one set to open in 2027 and another in 2028. It has another four mines lined up after that.

Investing in commodity-driven stocks is something that more conservative investors should probably consider with extreme caution, due to the inherent volatility of commodity prices. However, more aggressive investors seeking a different way to play AI may want to do a deep dive on Southern Copper and its major capital investment plans.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and SoundHound AI. The Motley Fool has a disclosure policy.