Top Rated Stock: Copper/Aluminum Boom & Undervalued AI King

What if the biggest profit opportunities right now aren't in overhyped tech— but in the raw materials powering AI's explosion and one legendary chip giant suddenly trading at its cheapest level in years? Three powerhouse names are perfectly positioned to capture a prolonged metals shortage and an AI leader's undervalued rebound. Click to discover the combo smart money is quietly accumulating for 2026 fireworks.

HERE ARE OUR PICKS FOR THIS WEEK!

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Alcoa Corporation (AA): Surging Aluminum Demand in Green Tech Era

Aluminum powerhouse Alcoa Corporation(AA) has capitalized on the 2025 metals boom, where aluminum prices surged amid tightening supply and escalating demand from AI data centers and clean energy transitions.

Aluminum's critical role in efficient power transmission and lightweight structures for renewables positions AA favorably, especially as easily exploitable mines are depleted, new developments require at least a decade, and existing operations face natural disaster risks, ensuring prolonged supply shortages.

Strategic moves, including a long-term energy contract and $60 million U.S. smelter investment, enhance operational resilience. Gallium project advancements promise market entry by 2026, diversifying revenue amid commodity recoveries. AA's vertical integration and strong balance sheet offer EBITDA upside in volatile markets. Broader forecasts indicate continued metal price rises into 2026, driven by AI infrastructure consuming vast quantities and clean energy mandates.

The stock's P/E of 12.45 reflects undervaluation, with robust Q3 2025 earnings showing net income doubling to $232 million YoY on higher production and revenues.

Outlook:

With copper and aluminum deficits projected at over 500,000 tonnes in 2025, AA could see 20-30% revenue growth if prices sustain highs, yielding total returns exceeding 15% annually through appreciation and dividends. In a supply-constrained world, AA stands as a defensive play with cyclical upside for patient investors navigating geopolitical and environmental shifts.

Southern Copper Corporation (SCCO): Copper Kingpin in Electrification Boom

As a leading copper producer, Southern Copper Corporation (SCCO) has thrived on the 2025 metals surge, with copper prices breaching $12,000 per ton amid supply woes and booming demand from AI data centers and clean energy initiatives.

Copper's indispensability in high-efficiency wiring for AI facilities—consuming up to 50,000 tonnes per center—and renewables exacerbates shortages, as prime mines are exhausted, new ones demand 10+ years, and disasters threaten output, perpetuating imbalances.

Recent earnings underscore strength: Trailing twelve months revenue hit $12.33 billion, with net income at $3.82 billion, up significantly YoY on production ramps and price tailwinds. As a pure-play with ambitious expansion, SCCO benefits from structural deficits forecasted at 150,000 tons in 2026.

Outlook:

Analysts bullish views highlight its cost-curve dominance and 2.51% dividend yield with 16% five-year growth. Tariffs and supply disruptions further bolster prices, positioning SCCO as a hedge against inflation and transition risks.

Market projections favor continuation: Energy transition demand could triple copper needs by 2045, driving prices to $12,500 in Q2 2026. SCCO's pipeline supports 20%+ production growth, potentially yielding 15-25% total returns via dividends and appreciation. Amid geopolitical tensions, SCCO offers stable exposure to enduring red metal supercycle.

NVIDIA Corporation (NVDA): AI Dominance Amid Valuation Reset

The AI leader has undergone recent price adjustments, posting YTD gains of approximately 37%, yet underperforming the PHLX Semiconductor Index (SOX) at around 38%. Trading at a 13% discount to SOX peers, NVDA remains the undisputed global AI frontrunner, with only 13 trading days in the past decade cheaper relative to the index.

Its forward P/E below 27x marks a compelling entry; historically, buys under 25x P/E averaged 150% one-year returns with no negatives.

The GPU versus ASIC narrative revives, favoring NVDA's flexible architecture in evolving AI workloads.

Outlook:

Analysts rate it Strong Buy with a $252.49 target, implying 34% upside, buoyed by breakout potential and undervaluation versus tech bubbles. Despite circular financing concerns, NVDA's moat in data centers and software ecosystem fortifies its lead.

Projections signal explosive growth: AI capex surges position NVDA for $6 trillion market cap by 2026-end, with EPS growth exceeding 100% in high-demand scenarios. In a maturing AI landscape, NVDA blends defensive scale with offensive innovation for 50%+ annualized returns.