‘The Big Short’ investor Michael Burry said he’s “largely ignoring” the hype driving artificial intelligence stocks higher, but instead disclosed a position in a copper miner whose metal is critical in the data center buildout.
“The house party is packed, pushing AI higher today, but I am largely ignoring the "woo-hoos," the investor said in his Substack blog published on Monday.
Copper Is Burry’s Indirect AI Bet
Burry disclosed a position in Ero Copper Corp. (NYSE:ERO), a Brazil-focused mining company with a diversified portfolio of copper and gold assets.
“All those back at the house are going to be needing a lot of copper,” he said, according to a report by Stockwits.
Burry cited data from Apollo economist Torsten Slok showing major copper discoveries have fallen sharply since the 1990s, even as new AI data centers can generate fresh copper demand within two to three years, far outpacing the roughly 18 years it takes new mines to reach production.
Copper’s Role in the AI Buildout
High-density server racks rely on thick copper busbars instead of standard cabling, while the liquid cooling systems used by advanced AI chips depend on copper tubing and heat exchangers.
J.P. Morgan estimates that a single large AI data center can require up to 50,000 metric tons of copper and that data centers, as a category, will consume roughly 475,000 metric tons in 2026.
At the time of writing, copper prices on the London Metal Exchange were up 0.96% to $14,661 and on the Comex exchange in New York, copper futures traded at $6.82 a pound.
So far this year, Global X Copper Miners ETF (NYSE:COPX) has gained 20.68% and 63.41% over the past year, while the United States Copper Index Fund ETV (NYSE:CPER) has gained 16.33% year-to-date and 42.3% over the past year.
Revenue and Profit Are Climbing
The Vancouver, Canada-headquartered company reported second-quarter revenue of $284.3 million, up from $163.5 million a year earlier.
Net income attributable to shareholders rose to $0.85 per diluted share compared to $0.68 per share a year ago.
Price Action: Ero Copper shares closed 1.55% higher on Monday at $34.70 and gained 0.43% in Tuesday’s pre-market trade.
Year to date, the stock has gained 20.99% and rose 104.48% over the past year.
Benzinga edge rankings indicate Ero Copper’s stock has a Momentum score in the 94th percentile and a Growth score in the 90th percentile.
See More: Top Momentum Stocks
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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