BYD – Between Local Price Wars and Internationalization
Why is BYD so dependent on copper? Quite simply, electric vehicles are copper-hungry. A single vehicle from the Chinese manufacturer requires up to 80 kg, mainly for the battery, motor, and onboard electronics. No other material conducts high currents with such low losses. With annual production in the millions, this quickly adds up to hundreds of thousands of tons. This makes BYD one of the world’s largest industrial copper consumers—a strategic lever that can quickly turn into a margin trap during commodity price rallies.
The domestic market in China is turning into a minefield. The price war in the mass-market segment has intensified dramatically, primarily due to aggressive newcomers. Deliveries have been falling for the eighth consecutive month. The first quarter saw a 55% plunge in profits to the equivalent of CNY 4.1 billion, with revenue down nearly 12%. Although BYD holds the crown for pure electric vehicles, the group slipped to fourth place in the overall list of vehicle sellers. This is a clear signal for investors.
Crucially, exports are now outpacing domestic sales for the first time. The 2026 target is 1.5 million vehicles outside China, a 40% increase. In Germany, the company aims to reach 50,000 new registrations and expand its dealer network to 300 locations. Switzerland is seeing triple-digit percentage growth. Own plants in Hungary and Brazil mitigate tariff risks. Long-term investors see this as the real growth opportunity, while domestic pressure is viewed as a temporary cost for gaining market share. The stock is currently trading at EUR 10.898.
Power Metallic Mines – With strong drilling results
A Canadian resource explorer has already released two drilling results in May that have caught the attention of even industry experts. The results from Quebec show exceptionally high copper-equivalent grades over short lengths. One drill hole intersected 22 m with an average of 11.5% copper, including 6 m with nearly 19%. Another drill hole returned 5.7% over a 39-meter length. These values are many times higher than the global average for mineable copper deposits of about 0.4%. What matters is not the absolute tonnage, but the combination of grade and thickness. The company has now logged over 90 drill intervals exceeding 11 m in length with over 4.25% copper equivalent.
The high grades mean less rock that needs to be moved, crushed, and processed. This massively reduces diesel consumption, labour costs, and capital expenditures. A metallurgical study by the global market leader SGS certifies recovery rates of 95% on average for the project. This is significantly higher than the originally estimated 80%. Added to this is the locational advantage of Quebec. A year-round road leads directly to the drill site, and the Hydro-Quebec power grid runs just across the street. Permitting processes move faster here than in many other jurisdictions, and cooperation with the First Nation is governed by a royalty model.
Originally, the Mineral Resource Estimate (MRE) was not scheduled until next year. Management has accelerated the timeline. The MRE is now expected as early as this summer, with the Preliminary Economic Assessment (PEA) to follow in the fourth quarter. For investors, this means that the key valuation metrics will be available sooner than anticipated. Those waiting for complete certainty risk missing out on the opportunity. Management estimates that the discrepancy between what has already been proven and what the market is currently pricing in is significant. The more positive drill results that come in, the smaller this gap should become. The stock is currently trading at CAD 1.37.
Intel – Copper, AI, and a Comeback
Copper is no minor commodity for Intel. The chips themselves use the metal for conductive connections between transistors. It conducts electricity better than aluminum and reduces heat loss. At the same time, copper is used in cooling systems and the power supply of data centers, where an increasing number of AI chips are generating enormous power densities. Spring 2026 marked a turning point for Intel. The company delivered strong quarterly results, significantly exceeding analyst expectations and setting the stage for a serious AI comeback.
Revenue climbed to USD 13.6 billion, up 7% from the previous year. The data center and AI business grew by 22% to USD 5.1 billion, driven by high demand for Xeon processors for AI applications. Client computing also performed well at USD 7.5 billion, while the foundry business grew by 16%. The gross margin improved to 41%. Clear signs of operational efficiency, even as competitive pressure from Nvidia and AMD remains high.
Intel is focusing on targeted partnerships. A multi-year agreement with Google covers Xeon processors for cloud instances and the joint development of IPUs. With SambaNova, the company is planning hybrid solutions combining GPUs and Xeon 6. The manufacturing roadmap is gaining momentum. Panther Lake CPUs are on the horizon, and 18A technology is set to enter mass production in 2026. For the second quarter, Intel expects revenue between USD 13.8 billion and USD 14.8 billion.
The transformation from a pure processor manufacturer to a foundry player is in full swing. The stock is currently trading at USD 113.01.
The structural copper shortage is intensifying the race for the red metal. BYD, a major copper consumer, is struggling with shrinking margins in the Chinese price war, while exports are outpacing domestic sales for the first time. Power Metallic Mines is proving itself to be one of the richest projects worldwide with drilling results of up to 18.62% copper equivalent over 4 m, further bolstered by excellent infrastructure in Quebec. Intel surprises with strong quarterly results and an AI comeback, with copper remaining indispensable for data center cooling infrastructure. Three completely different companies, all caught up in the wake of the supply crisis.
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