Is FCX a good stock to buy? We came across a bullish thesis on Freeport-McMoRan Inc. on Darius Dark Investing’s Substack. In this article, we will summarize the bulls’ thesis on FCX. Freeport-McMoRan Inc.’s share was trading at $64.25 as of June 9th. FCX’s trailing and forward P/E were 33.99 and 23.81 respectively according to Yahoo Finance.
Photo from Hycroft Mining website
Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. FCX is positioned as one of the most compelling ways to gain leveraged exposure to the accelerating global copper bull market driven by AI infrastructure, electrification, and grid modernization. While investors have broadly rushed into diversified mining giants such as BHP Group, the thesis argues that these companies remain heavily tied to structurally declining legacy assets, particularly iron ore and steelmaking coal, which are deeply dependent on China’s weakening real estate market.
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Despite BHP’s growing copper exposure, nearly half of its operational earnings still come from iron ore, leaving the company exposed to declining Chinese steel demand, rising global supply from projects like Simandou, and geopolitical pressure from China’s centralized commodity purchasing strategy. In contrast, FCX offers concentrated copper exposure with minimal reliance on deteriorating industrial trends.
The company controls 70% of refined copper production in the United States and benefits directly from copper’s designation as a critical mineral, which has accelerated permitting support and strengthened domestic pricing power following tariffs on imported copper products. FCX’s operations are further differentiated by technological advantages, including autonomous mining systems and its “Leach to the Last Drop” initiative, which uses AI and advanced chemical engineering to recover copper from historical waste rock at extremely low costs.
Even after temporary disruptions at the Grasberg mine in Indonesia, elevated copper prices preserved profitability and reinforced the structural supply deficit narrative. With expanding domestic production, strong EBITDA margins, and growing strategic importance to U.S. technological and national security infrastructure, FCX is increasingly positioned as both a copper producer and a critical AI infrastructure proxy.
Previously, we covered a bullish thesis on Hudbay Minerals Inc. (HBM) by Unemployed Value Degen in December 2024, which highlighted the company’s operational efficiency, disciplined capital allocation, and long-term upside from rising copper demand. HBM’s stock price has appreciated by approximately 187.20% since our coverage. Darius Dark Investing shares a similar view but emphasizes on Freeport-McMoRan Inc. (FCX)’s domestic copper dominance and AI infrastructure-driven demand.
Freeport-McMoRan Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 82 hedge fund portfolios held FCX at the end of the first quarter which was 91 in the previous quarter. While we acknowledge the risk and potential of FCX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FCX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
