Financial Services Association, March 29 (Editor Huang Junzhi) JPMorgan analysts said in the latest report released on Thursday that Nvidia is shifting short-distance data transmission from artificial intelligence data centers to copper cables, which marks a sharp increase in future copper demand. Furthermore, this trend is also expected to boost related “copper stocks.”

Last week, the Nvidia GTC conference sparked not only the AI chip market, but the copper cable products used in the chip were also hotly debated. According to Hwang In-hoon, GB200 uses NVLink technology with 72 Blackwell GPUs fully interconnected, and has over 2 miles of NVLink copper cables, demonstrating the huge potential of copper cable connections in the field of high-performance computing.

According to reports, Nvidia's move is to reduce the electricity consumption of its data center equipment, and the large-scale use of copper has indeed exceeded the expectations of many industry insiders. The company notes that using copper instead of optics can save 20 kilowatts of electricity per server rack.

Evercore ISI analyst Amit Daryanani said in a customer report that Nvidia's shift from optics to copper was a major topic of discussion. “One key factor in using more copper is liquid cooling, which allows more GPUs (graphics processing units) to fit into a single rack,” he said.

According to the International Energy Agency (IEA)'s basic forecast, global data center power demand will grow at a CAGR of 15% by 2026. J.P. Morgan estimates that by 2030, this growth rate will require a cumulative increase of about 2.6 million tons of copper demand. This will also translate into around 2% of the expected global copper demand in 2030, the bank said.

The bank wrote, “In the next decade, exponential growth in AI computing power... will require extraordinary growth in global electricity capacity.”

Komo also said that as new demand for copper appears, the copper supply gap is expected to reach 4 million tons by 2030. The report said that the growth of pure electric vehicles and renewable energy, combined with the limited supply of new copper mines, is the reason they predicted a shortage of copper.

“Copper stocks” receive attention

J.P. Morgan Chase highlighted three companies in “copper stocks.” The company said$Teck Resources (TECK.US)$It is its “first choice” in North America.

Additionally, it has selected$ANGLO AMERICAN (AAUKF.US)$and Sandfire, which is listed on the Australian Securities Exchange (Australian Securities Exchange). Sandfire is a sustainable mining company that has now transformed into a major global copper producer.

Other major copper stocks include$Freeport-McMoRan (FCX.US)$und$Southern Copper (SCCO.US)$.

Editor/Somer