Is Freeport-McMoRan Inc (FCX) Worth Buying on the China H20 Chip Sale Ban?

We recently published a list of Buy The Dip On These 10 Semiconductor Stocks Tumbling On China H20 Chip Sale Ban [1]. In this article, we are going to take a look at where Freeport-McMoRan Inc (NYSE:FCX) stands against other semiconductor stocks tumbling on China H20 chip sale ban.

Semiconductor manufacturers are at the forefront of the technological battle, especially in the context of China's rapid tech developments. One would have thought President Trump would take it easy on the chipmakers owing to their critical position in the US and global tech infrastructure.

However, investors are now finding out that semi stocks aren't immune to tariffs, with the latest round of tariffs expected to cost manufacturers around £1 billion.

This cost will be incurred through lost sales, increased regulatory compliance, and elevated supply chain costs.

Uncertainty regarding the exact details of the tariffs continues to cause chaos in the market. Chip stocks are sliding as the leading chipmaker, led by Jensen Huang, finds its H20 chips banned from export to China. As the leading chipmaker tries to steer its way out of the crisis, other companies that rely on this giant for business are also trying to figure out what to do.

We decided to take a look at such stocks and see if they offer value.

Remember that the H20 chips were made specifically for China, and a ban on selling them is only a temporary headwind, not something that threatens the company's moat.

To come up with the list of semiconductor stocks worth buying on the China H20 chip sale ban, we considered stocks that are an integral part of the semiconductor supply chain and ranked them by hedge fund interest in their stocks.

Is Freeport-McMoRan Inc (FCX) Worth Buying on the China H20 Chip Sale Ban?

A large open-pit copper mine with heavy machinery extracting minerals from the earth.

Number of Hedge Fund Holders: 88

Freeport-McMoRan Inc is a mining company operating in North and South America as well as Indonesia. The company is a major copper supplier to the semiconductor industry.

FCX's bullish thesis is driven mainly by gold prices, which have been up considerably in the recent past. On top of that, copper demand is set to stay elevated thanks to EVs, 5G, and AI initiatives that will result in increasing demand for semiconductors.

Earlier this month, the company's CEO, Kathleen Quirk, warned about the negative impact of a recession and trade war.

However, she was also quick to point out that the company expects copper sales to improve going forward. Combining this with a potential surge in copper prices means the firm's earnings could be substantially elevated in the next couple of years, even if tariffs continue to batter the broader semiconductor industry.

Overall, FCX ranks 3rd on our list of semiconductor stocks tumbling on China H20 chip sale ban. While we acknowledge the potential of FCX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame.

There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%.

If you are looking for an AI stock that is more promising than FCX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock[2].

Disclosure: None.

This article is originally published at Insider Monkey[5].

References

^ Buy The Dip On These 10 Semiconductor Stocks Tumbling On China H20 Chip Sale Ban (www.insidermonkey.com)
^ cheapest AI stock (www.insidermonkey.com)
^ 20 Best AI Stocks To Buy Now (www.insidermonkey.com)
^ 30 Best Stocks to Buy Now According to Billionaires (www.insidermonkey.com)
^ Insider Monkey (www.insidermonkey.com)