We recently published a list of 10 Best Metal Stocks to Buy According to Billionaires. In this article, we will look at where Steel Dynamics, Inc. (NASDAQ:STLD) stands against other best metal stocks to buy.

When investing in the best metal stocks, the stakes are high, and the potential rewards are even higher. Metals power the modern economy, from the foundations of skyscrapers to the circuits in your smartphone. For savvy investors, these commodities offer a strategic opportunity to capitalize on global demand, fluctuating prices, and billionaire-backed bets that shape the future of the industry.

As of March 2025, the U.S. stock market has been riding a wave of volatility, with the broader market reaching a record high of 6,152.87 in February, marking a 3.49% increase year-to-date. However, the index suffered a decline in March. Meanwhile, copper prices have skyrocketed to an unprecedented $5.24 per pound, largely driven by looming 25% tariffs on imports and China’s aggressive economic stimulus measures. Investors have been quick to respond, driving up the stock prices of major mining giants.

The precious metals sector has been equally dynamic. Gold futures are climbing 14%, and analysts are projecting further earnings growth of 17% in 2025 and 16% in 2026.

One of the strongest signals in the metals market comes from billionaire investors. Heavyweights like Berkshire Hathaway, led by Warren Buffett, have a strong presence in the metals sector, with a strategic focus on silver and gold mining companies rather than direct gold ownership. Beyond U.S. borders, Buffett’s investment strategy has extended into Japan’s massive trading conglomerates. These firms operate across multiple industries, with significant stakes in natural resources and metals, highlighting the global nature of the metals market.

The rise of rare metals has also drawn significant interest, with billionaires like Bill Gates and Jeff Bezos funneling $537 million into Africa’s rare metals sector, as reported by Business Insider. As the world shifts toward renewable energy and advanced technology, the demand for critical minerals is soaring, promising new wealth for those who control these resources.

With 40% of investors planning to increase their exposure to gold and other precious metals in the next 12 months, as highlighted by the UBS Billionaire Ambitions Report 2024, the metals and mining sector remains a dynamic and lucrative space. While tech and banking CEOs dominate the headlines, eight of the world’s 100 richest individuals on the Forbes Billionaires List have built their fortunes in metals and mining. Understanding the factors driving these investments is key to making informed decisions.

Deloitte’s Tracking the Trends 2025 Report highlighted the key trends in the industry. Specifically, it underscores the power of inclusive leadership in driving innovation and problem-solving in the metals industry—critical in today’s fast-evolving economic, social, and environmental landscape. Companies that embrace technology, enhance safety, and stay adaptable position themselves for sustainable growth.

Meanwhile, AI is revolutionizing mineral exploration, optimizing geoscience data to accelerate target identification, slash costs, and streamline project timelines—essential for mitigating metal shortages.

On the revenue side, PwC’s Mine Report revealed that despite increased production, the world’s top 40 miners saw revenues drop over 7% in 2024 due to falling commodity prices and rising costs. KPMG’s 2024 industry index shows modest gains despite geopolitical turbulence and macroeconomic pressures. Key challenges? Tech investment, ecosystem collaboration, talent acquisition, and funding.

On the billionaire front, metals and mining remain a lucrative—albeit volatile—business. The world’s richest investors play long games, with Warren Buffett notably favoring silver over gold due to its industrial and medical applications. As always, informed strategies separate winners from the rest.

In the next section, we’ll delve into the methodology used to identify the best metal stocks to buy, backed by billionaire insights and industry trends.

Our Methodology

We used Insider Monkey’s exclusive database of billionaire stock holdings to arrive at our list of best metal stocks to buy according to billionaires. We selected the 10 best stocks to buy based on the highest number of billionaire investors, updated as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total dollar value of billionaire holdings as a secondary metric to rank the stocks. Billionaires are founders or managers of some of the world’s leading hedge funds and companies.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Steel Dynamics, Inc. (NASDAQ:STLD)

Number of Billionaires: 12

A leading U.S. steel producer and metal recycler, operating in segments such as steel production, metals recycling, and steel fabrication, Steel Dynamics, Inc. (NASDAQ:STLD), serves diverse industries, including construction, automotive, and manufacturing.

The total revenue in 2024 stood at $17.54 billion, a decrease of 6.68% since last year. However, in the first quarter of 2025, Steel Dynamics, Inc. (NASDAQ:STLD) anticipates stronger profitability in its steel operations compared to the previous quarter. This expectation is based on increased shipments offsetting some metal margin compression as contractual steel pricing catches up with recent spot price improvements. The energy, non-residential construction, automotive, and industrial sectors continue to drive demand. Notably, the Sinton Texas Flat Roll Division operated at over 90% production levels during this period, with ongoing enhancements in product quality and cost efficiency, paving the way for anticipated profitability in the second quarter of 2025.

Steel Dynamics, Inc. (NASDAQ:STLD) increased its first-quarter 2025 cash dividend by 9% to $0.50 per share and authorized an additional $1.5 billion share repurchase program. As of March 12, 2025, the company had repurchased $191 million of common stock in the first quarter.

Analysts have a bullish outlook on Steel Dynamics, Inc. (NASDAQ:STLD), with UBS upgrading the stock to a “Buy” rating. The average price target from 16 ratings stands at $147.36, indicating a 16.98% potential upside, as of March 28.

Overall, STLD ranks 5th on our list of the best metal stocks to buy according to billionaires. While we acknowledge the potential for STLD 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 STLD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.