Nearly $700 billion pouring into AI data centers this year from tech giants. Two firms — Freeport-McMoRan Inc. and Digital Realty Trust, Inc. — not in chip spotlight, feeling ripple effects in different ways .
Freeport-McMoRan (NYSE: FCX),top copper miner, posted earnings of 74 cents per share,beating 59 cents analysts expected. Despite 18.2% drop in copper output,net income jumped to $984 million from $853 million last year. Copper prices soared 41.5%,driven by supply fears and strong Chinese demand.
Production issues arose from recovery at Indonesia's Grasberg mine, where a mudslide last September killed seven. Repairs cost $363 million this quarter. CEO Kathleen Quirk remains hopeful,saying mine should be fully operational by year-end. Tariffs from Trump era could enhance Freeport's gains, but no decision yet.
Meanwhile, Digital Realty Trust (NYSE: DLR) shows direct AI spending connection. Owning, leasing data centers,their revenue surged 29% to $1.92 billion, beating $1.66 billion analyst forecast. Core Funds From Operations reached $2.65 per share, versus expected $1.86. Without $188 million joint venture boost, it’s $2.13 per share, up from $1.87 last year.
Digital Realty raised yearly outlook, now seeing $8.15-$8.20 per share earnings,higher than before. New July leases add $410 million annually, with its share at $205 million. Existing tenants renewing leases face over 25% rent hikes,showing market power. Stock rose 3% post-earnings,prompting analyst upgrades,including price bump from JPMorgan and rating boost from TD Cowen.
Their different results spark questions about their roles in AI sector. Digital Realty's model ties closely to cloud,AI firm demand, ensuring steady rent despite tenant AI product success. Freeport's quarter leaned on copper prices,not AI sales surge. Long-term, copper benefits from AI infrastructure needs,but Freeport's recent win wasn't AI sales-driven.
Insider Monkey’s hedge fund data shows growing confidence in Digital Realty over Freeport. By Q1 2026's end,46 hedge funds held Digital Realty,up from 43, nearing $1 billion in value. Freeport,though held by more funds—82—dropped from 91,with $9.46 billion value. Freeport's hedge fund concentration is 11.2%, far above Digital Realty's 1.6%.
Both showed strong quarterly results,but their AI sector ties diverge. Digital Realty is clear AI infrastructure play,growing with hyperscaler spending. Freeport's AI boom benefits are indirect,with copper demand from EVs and construction also at play.
Investors looking at AI stocks might find Digital Realty a straightforward choice, while Freeport investors should weigh copper demand's broader context and production recovery risks...
