“Red Gold” Rush: 3 Copper Stocks Powering the AI Boom

A red gold rush is underway in 2026 with three Canadian mining powerhouses expected to power the AI boom.

Key Points
  • Copper is the “red gold” of 2026—surging demand from AI data centers and grid upgrades, plus supply tightness and critical-mineral designations, has pushed prices higher.
  • Hudbay Minerals, Capstone Copper, and Teck Resources are top Canadian beneficiaries—Hudbay’s Copper World project and long-life assets, Capstone’s record production, and Teck’s Anglo American “merger of equals” and earnings rebound position them to capture the upside.
  • 5 stocks our experts like better than [Hudbay Minerals] >

Industry experts consider copper the “red gold” for its high economic value. A red gold rush is underway in 2026, driven by the build-out of artificial intelligence (AI) data centres and infrastructure, as well as massive power grid expansions.

Three Canadian miners are major players in the red gold rush. Hudbay Minerals (TSX: HBM) and Capstone Copper (TSX: CS) have delivered massive returns over the past year. Teck Resources (TSX: TECK.B) has advanced significantly from year-end 2025.

Technology circuit board and core, 3d rendering.

Source: Getty Images

Industrial backbone

Gold and silver prices continue to rise to record highs in 2026 due to escalating geopolitical tensions and economic uncertainties. Copper benefits from surging demand from AI data centres and grid modernization. Once a mere commodity, the reddish-orange metal has transformed into an industrial backbone.

In November 2025, the U.S. Geological Survey (USGS) added copper to the list of critical minerals. The European Commission did so in March 2023. The red metal currently trades at US$12,500 per metric ton, but a supply shortage could push the price higher.  

Stable copper producer

Hudbay Minerals boasts long-life mines and a robust pipeline of copper growth projects in Canada, Peru, and the United States. The $8.7 billion copper-focused mining company said copper is among the world’s most heavily consumed metals, and demand is only going to grow.

Performance-wise, HBM is up +31.2% year to date. At $35.74 per share, the trailing one-year price return is +254.4%. The three-year total return is +451.8%. Hudson’s growth catalyst is its Copper World project in Arizona. This joint venture with Mitsubishi Corporation (70/30) is anticipated to produce 85,000 tons of copper annually for 20 years.

Record production

Capstone Copper achieved a record annual copper production of 224,764 tonnes last year, setting a strong foundation for 2026. The $9.6 billion company has operating mines in Chile (2), Mexico, and the United States. All are pure-play copper assets.

According to its president and CEO, Cashel Meagher, 2025 was an inflection point for Capstone. He cites transformational copper growth delivered by several key catalysts. The year also marked four consecutive years of record consolidated copper production.

In the first three quarters of 2025, adjusted net income climbed 103% year over year to US$85 million. At $13.75 per share, current investors enjoy a +68% one-year return.

“Merger of equals”

Teck Resources’s copper business, not zinc operations, is the primary earnings driver. In December 2025, the $29.4 billion diversified natural resources company announced that shareholders overwhelmingly approved the proposed merger with U.K.-based mining giant Anglo American.

The so-called “merger of equals” aims to create a global top-five copper company that will deliver enduring benefits for Canada. In 2025, Teck’s profit reached $1.4 billion from a net loss of $467 million in 2024. Its president and CEO, Jonathan Price, said profitability in Q4 rose 41% year over year to $544 million due to higher copper prices.

TECK.B trades at $81.02 per share, a 23% surge from year-end 2025. Market analysts’ 12-month high price target is $104. The copper stock also pays a modest 0.61% dividend.

Strong tailwinds

Copper is a key component in emerging technologies. Rising global demand and scarcity of the red metal are strong tailwinds for Hudson Minerals, Capstone Copper, and Teck Resources in 2026. Prospective investors gain exposure to an essential element of modern life.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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