Your smartphone, power grid, and data centers all have something in common: they need copper to function.
However, Industry experts are warning that copper shortages could hit within the next 12-16 months.
And while that sounds like bad news for tech and infrastructure, it's actually creating an opportunity for some copper producers like Freeport-McMoRan (FCX) to benefit.
As of January 23rd 2026, shares of FCX are trading near all-time highs. But will its rise continue or is it at its peak?
Let’s break down why copper shortages are creating investing opportunities, what is happening with FCX stock and the other risks investors need to know.
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Why Copper Shortages Are Coming
Copper is a critical component in electronics, EVs, data centers, and power infrastructure.
All of those things are hot in demand, meaning the world is using super copper faster than we can produce it.
- The average smartphone is about 20% copper by weight.
Meanwhile, supply is struggling to keep up. The International Copper Study Group estimates the copper market will hit a 150,000-ton deficit in 2026.
It’s not just a supply and demand problem though - there’s a few other catalysts that are making this situation worse:
- Geopolitical tensions: China produces roughly 45% of the world's refined copper. In 2025, the U.S. placed a 100% tariff on Chinese imports due to China's rare earth restrictions.
- Mine closures: One of the world's largest copper mines, Cobre Panamá, shut down in 2023 amid political turmoil.
- Ore degradation: Copper is breaking down before it can even be mined, forcing companies to move more rock for less yield.
Bottom line: Demand is climbing while supply is tightening - that shift in the market is creating opportunities for copper miners to potentially benefit.
Why FCX Stock Stands Out
Freeport-McMoRan produces over 60% of all copper mined in the United States as of January, 2026.
The company operates major installations across the U.S., South America, and Indonesia as well.
FCX also mines gold, which hit a record high of $4,900 per ounce in January 2026. Copper also reached a record high around $5.90 per ounce in January 2026.
As a result, in Q2 2025, Freeport-McMoRan reported:
- Nearly $1 billion increase in quarter-over-quarter copper sales.
- $522 million in gold production sales (up from the same quarter in 2024).
- Total revenue of over $7.5 billion, nearly $1 billion higher than Q2 2024.
Even after a tragic mudslide forced the closure of one of its Indonesian mines in 2025 (which caused shares to drop over 22%), FCX stock has mostly recovered.
As of January, 2026, shares were up around 35% in the last 6 months.
The Potential Opportunity for Investors
As copper becomes scarce, the world still needs it - and Freeport-McMoRan is one of the only major U.S. producers.
When shortages intensify, institutions and investors will likely turn to established players like FCX.
The company's strong financials, global operations, and exposure to both copper and gold position it as a potential beneficiary of tightening supply.
Keep in mind: This is a potential long-term play.
Copper shortages won't hit their peak overnight, but positioning early - before the shortage becomes mainstream - could offer upside as supply constraints worsen.
In addition, tariffs could limit supply even further, which would impact the companies downstream that need it for their products.
Plus, there’s always a chance the world could find an alternative to copper. Our analysts don;t believe that to be the case anytime soon, but it is possible in the future.
Any one of these risks could limit investor returns for FCX or other opportunities impacted by this shift.
Investors should be aware that no investment is guaranteed to go up - always do your own due diligence and consult a personal financial advisor if you have specific questions.
Key Takeaways
| Factor | Details |
| Copper Shortage Timeline | Expected within 12-16 months |
| FCX's U.S. Market Share | Over 60% of U.S. copper production |
| Q2 2025 Revenue | $7.5 billion (up nearly $1 billion YoY) |
| 1- year Performance (Jan 2026) | +56.91% |
| Additional Exposure | Gold production (record highs in 2025) |
Final Thoughts On FCX Stock
Copper shortages are most likely coming soon
At the same time, demand is rising and supply is falling - and Freeport-McMoRan is one of the few companies with the scale to meet that demand.
Investors will want to keep FCX and this copper shortage in mind as the potential opportunity unfolds in 2026.
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