Recently, I have been looking into the raw materials sector and found that the market's understanding of it is undergoing significant changes. Many people still stay at the traditional cycle of economic prosperity, but in reality, which stocks in raw materials are worth paying attention to with new logic? That is the true investment opportunity.

In the past, raw materials followed the global manufacturing PMI; when the economy was good, prices rose, and when the economy was weak, prices fell. But now, it's different. Structural demands like AI data centers, electric vehicles, grid upgrades, and nuclear revival are pulling resources like copper, gold, silver, and uranium out of traditional economic cycles. A large AI data center consumes electricity equivalent to a small city, with every component—from servers to cooling systems—being major consumers of copper. The copper usage in electric vehicles is 3 to 4 times that of traditional fuel cars, and these demands won't disappear due to short-term economic cooling.

I checked reports from several mining companies, and they all warn of the same thing: a potential long-term copper supply gap. It takes an average of 7 to 10 years from discovery to production for new mines, and the grades of existing mines are continuously declining. So, there's a new saying for copper: "The new oil of the AI era," and this logic is quite straightforward.

Regarding specific stocks in the raw materials sector, I’ve categorized five major groups. For copper mines, there are Freeport-McMoRan, Southern Copper, and BHP Group. For gold and silver, silver now has a new bullish factor: it is indispensable in solar panels, electric vehicles, and server welding, but most silver supply comes as a byproduct of lead-zinc mines, with no independent silver mines expanding production. Related stocks like Newmont, Wheaton Precious Metals, and Pan American Silver are worth watching.

Uranium mining is particularly interesting. Microsoft has already signed with Constellation Energy to restart the Three Mile Island nuclear plant, and Google and Amazon are investing in small modular reactors. Although spot prices of uranium fluctuate, long-term contract prices are rising. Cameco and NexGen Energy are core stocks in this field. In oil and natural gas, the market faces a contradiction: on one hand, talking about energy transition, but on the other, AI and global electricity demand are surging, making natural gas important again. Exxon Mobil and Chevron remain the main choices in this area. Lastly, rare earths and critical minerals: China still controls about 70% of global rare earth mining and around 90% of refining and separation capacity, making short-term disruption difficult. MP Materials and Lynas Rare Earths will experience more volatility.

If I had to choose a single stock, I would start with Freeport-McMoRan. It is one of the largest publicly traded copper mining companies globally. Although its output was adjusted in 2026 due to a landslide, China International Capital Corporation (CICC) has raised its target price to $64.40, expecting it to recover most of its production in the second half of the year. Such short-term operational disruptions can be opportunities for investors bullish on copper prices. BHP, as the world's largest mining company with substantial copper reserves, also has a promising outlook. Newmont, the largest gold mining company globally, is expected to produce about 5.26 million ounces of gold in 2026, with a long-term bullish trend in gold prices and potential profit margin expansion.

However, individual stocks tend to be more volatile. A 10% increase in copper prices might lead to a 15-20% rise in FCX, and the same applies to declines. So, if you prefer more stable allocations, ETFs are a good choice. The SPDR Materials Select Sector ETF (XLB) includes major U.S. materials companies and has gained about 13% since early 2026. The Global X Copper Miners ETF (COPX), with total assets around $7.76B, is one of the largest global materials ETFs, tracking copper mining companies worldwide. The Global X Uranium ETF (URA), focusing on uranium mining and nuclear energy-related companies, has long-term narrative support amid AI and energy transition trends.

What should you pay attention to when investing in raw materials stocks? First, demand conditions, especially policies in China, since it has been the largest importer of raw materials over the past decade. Second, supply factors like environmental regulations, mine accidents, and OPEC policies can impact markets. Logistics is also crucial; the Baltic Dry Index (BDI) can serve as an indicator for price forecasts. Geopolitical issues influence import/export markets and tariffs. Regulatory changes cannot be ignored—stricter global environmental laws will keep increasing costs for high-carbon industries. Lastly, interest rates matter, especially for gold investments.

Many raw materials markets are highly volatile, and real trading opportunities often come from trend swings, geopolitical events, or price breakthroughs. Raw materials stocks often see high leverage capital inflows and outflows, and once the bullish momentum loosens, selling pressure can be fierce. My trading principle is to keep individual raw material stocks within 5% of total capital and set fixed stop-losses for each trade.

If you're interested in raw materials markets, you can start practicing with a demo account, tracking the correlation between copper, gold, and uranium stocks. Once familiar with the rhythm, you can trade with real funds. Raw materials investing indeed offers opportunities, but volatility itself is a risk that must be approached cautiously.