Crypto Down, Copper Up: How Rising Chip Stocks' Market Share, Tokenization Could Impact the Metal’s Price

Key Takeaways

Chip dominance is driving copper demand, as semiconductors now account for a record share of the tech sector.
AI and data centers are major catalysts, as AI infrastructure could consume over 500,000 tons of copper annually.
Tokenization may boost liquidity, not prices; however, the technical setup suggests copper’s price could hit a new high.

While crypto markets have been sliding, copper has started to recover after a seven-day downtrend.

At the time of writing, the metal has climbed back above $6.

The move comes as the S&P 500 semiconductor industry now accounts for a record 41.9% of the information technology sector’s total market cap.

In this analysis, CCN breaks down what this shift could mean for copper—and the key factors that may shape its price this year.

Why Is Copper Demand Rising?

Copper’s recent strength ties closely to the rapid expansion of the semiconductor sector.

Since the 2022 bear market, semiconductor stocks have more than doubled, taking up a much larger share of the tech landscape.

Back in 2013, they made up less than 10% of the IT sector.

Today, that figure has surged, with semiconductors accounting for a record 47.1% of the sector’s forward earnings—nearly tripling their share since 2023.

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The Link Between Copper and Semiconductors: Explained

For those unfamiliar, the physical link between copper and semiconductors is direct. Inside a chip, copper is the nervous system.

As of 2026, copper is the industry standard for interconnects — the microscopic wires that join millions of transistors.

Besides that, copper offers superior conductivity and thermal management, with 2nm and 3nm nodes.

Outside that, AI data centers strengthen the infrastructure link. AI lives in data centers.

Those centers consume huge amounts of copper for power distribution and high‑speed connectivity.

A single AI facility can require miles of copper cabling. Analysts estimate AI data centers could consume over 500,000 tons of copper annually by 2030.

In April 2026, a surge in AI orders for high‑speed copper cables pushed several Far‑East cable stocks to daily price limits.

That demand has supported copper’s rebound, with more signs that the price rally could retest $7 soon.

Economically, copper and chips move together. However, this tight link also creates risk.

For instance, high copper prices spur R&D into substitutes.

For sub‑2nm nodes, research into ruthenium, cobalt, and graphene has accelerated to combat the resistivity size effect, where copper becomes less efficient at microscopic scales.

In power semiconductors for EVs, pressure‑assisted copper sintering now challenges silver‑based materials.

Tokenization Comes Into the Picture

In the crypto context, the tokenization of copper also appears to be driving demand.

At the time of writing, copper tokenization has moved beyond experimentation and into a multi-billion-dollar institutional asset class.

Interestingly, it also fits into the broader Real-World Asset (RWA) trend, where physical commodities are mirrored on-chain.

The overall tokenized RWA market has grown to approximately $19–30 billion in 2026, with commodities representing a growing segment (around $7 billion, predominantly driven by precious metals so far).

This enables improved price discovery, reduced counterparty risk via verifiable on-chain collateral, and easier participation for both retail and institutional investors.

The timing is particularly relevant amid growing structural supply deficits in physical copper — analysts project shortfalls ranging from 150,000 to 330,000 metric tons in 2026, driven by surging demand from data centers, electric vehicles, and renewable energy infrastructure.

Tokenization is helping channel capital more efficiently into the sector, potentially supporting market liquidity and long-term investment flows.

As custody solutions, pricing oracles, and regulatory frameworks continue to mature, tokenized copper is well-positioned to become a meaningful component of diversified portfolios — following a path similar to that of tokenized precious metals, which gained mainstream traction.

Copper Price Prediction 2026

From a technical point of view, Copper is poised for a major breakout after completing a large corrective structure.

As shown below, the monthly chart shows a completed ABCD-type correction, with price bouncing strongly from the B leg near $2 and now driving into the upper boundary of the structure around $6.20.

Furthermore, this closely aligns with the 0.786 fib ($5.33) and prior macro resistance.

This zone is critical because it’s historically where supply has concentrated, and we’re already seeing prices hesitate just below $6

Momentum is clearly supportive. MACD is expanding, with both lines trending higher, and RSI is holding above 60, which is strong but not yet at extreme levels.

That suggests buyers are still in control, but the market is approaching a level where reactions are likely.

If copper can hold above $5.8 and consolidate, the structure supports continuation toward the $6.65 region, which is effectively the macro resistance/top of the range.

Copper price prediction 2026 — COPPER Monthly Chart | Credit: TradingView

A clean breakout there would signal a longer-term expansion phase.

However, if the price starts rejecting this zone, especially back below $5.32, it would likely trigger a pullback into $4 near the 0.618 golden ratio.

Crypto Down, Copper Up: How Rising Chip Stocks’ Market Share, Tokenization Could Impact the Metal’s Price

Why Is Copper Demand Rising?

The Link Between Copper and Semiconductors: Explained

Tokenization Comes Into the Picture

Copper Price Prediction 2026

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