Deutsche Bank believes the surge in copper prices in its early inning only.
According to the investment firm, aggressive demand from artificial intelligence (AI) and electric vehicles (EVs) could drive copper prices up to $10 a pound, or $22,050 per metric ton.
This would represent more than a 50% increase from $14,200 in late September, which could prove a major tailwind for the following three stocks.
Freeport-McMoRan (FCX)
Freeport-McMoRan stock is worth owning to play the expected surge in copper prices – especially since it puts a number on its copper leverage.
The company estimates each 10-cent change in the copper price shifts its 2026 operating cash flow by about $300 million, which it pegs at $8.3 billion at $6 a pound for copper.
FCX’s second-quarter copper output came in down 18% as Indonesia’s Grasberg miner recovered from the September 2025 mud rush.
But management expects the district to reach nearly 65% of capacity in the back half and 80% by mid-2027, with a larger share of sales now expected in the final quarter.
Investors should also note that FCX shares currently pay a dividend yield of about 0.83% as well, which makes them even more attractive as a long-term holding.
Teck Resources (TECK)
The bullish case for Teck Resources stock rests primarily on rising volume and falling unit costs.
Q2 copper production climbed 25% on a year-over-year basis to 135,900 metric tons – with every copper operation higher, while net cash unit costs fell to $1.64 a pound from $2.02.
The firm’s Quebrada Blanca in Chile produced 55,800 tons, a third straight stable quarter, and its management reaffirmed full-year guidance in the range of 455,000 to 530,000 tons.
Meanwhile, TECK’s Highland Valley extension is expected to sustain output of about 132,000 tons a year through 2046.
Much like FCX, the NYSE-listed firm also currently pays a dividend yield of 0.54% – effectively becoming more attractive for income-focused investors.
Southern Copper (SCCO)
Southern Copper is already posting record profits despite shrinking copper volumes.
Its Q2 adjusted EBITDA reached $2.96 billion on sales of $4.3 billion, a margin near 69%, while copper production slipped to 230,662 metric tons as Peruvian output fell 12% on lower ore grades.
But by-product credits of $2.24 per pound offset nearly all of the $2.29 per pound in operating cash costs before credits.
Importantly, management raised its 2026 copper outlook to about 917,000 metric tons. Among the names on our list, SCCO stock pays the most lucrative dividend yield of 1.91% as of writing.
Even from a technical perspective, Southern Copper currently sits decisively above its key moving averages (MAs), with an RSI in the mid-50s indicating significant buying pressure that could drive its share price higher in the near term.
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