The renewable energy sector is surging this week, with a flurry of developments that signal a continued shift away from fossil fuels. But the transition isn't without its challenges, as the insatiable appetite for AI chips strains global copper supplies and geopolitical tensions weigh on oil markets.
According to OilPrice.com, copper prices have surged toward the $12,000 mark, fueled by a "perfect storm" of supply disruptions and frantic AI-driven demand. Citi analysts now predict the red metal could hit record highs, as companies race to secure the raw materials needed to power the AI revolution. "The AI-fueled chip shortage could raise smartphone prices — new research spells out by how much," reported CNBC, noting that the average selling price of smartphones in 2026 is expected to rise nearly 7% due to the supply crunch.
AI Chips Strain Copper Supplies
The copper crunch is just one example of the far-reaching impacts of the AI boom. CNBC reported that "AI infrastructure stocks are taking a beating" as investors grow wary of the debt burdens carried by many AI-focused companies. "Debt worries continue to weigh on AI-related stocks," the outlet noted, as the ready availability of AI clients means firms must focus on shoring up their finances.
The AI frenzy is also straining geopolitical relations, with the U.S. reportedly halting negotiations on a "technology prosperity deal" with the UK. According to the Financial Times, the deal was aimed at increasing collaboration on emerging technologies like AI, nuclear fusion, and quantum computing. But Reuters reported that the U.S. has now put the brakes on the negotiations, underscoring the growing competition and tensions in the global tech landscape.
Oil Prices Slip on Ukraine Talks
While the AI sector grapples with supply chain challenges, the oil market is facing its own set of headwinds. Reuters reported that oil prices slipped this week on "Russia-Ukraine peace deal talks" and "weak China data," with Brent crude hitting its lowest intraday level in six months. The Financial Times noted that oil fell below $60 a barrel as investors grew more optimistic about a potential resolution to the conflict in Ukraine.
Pakistan, meanwhile, is seeking to strike its own oil deal with Russia, according to a report from RIA news agency cited by Reuters. The energy ministries of the two countries are reportedly in talks, as Pakistan looks to secure more favorable energy supplies amid the global volatility.
The Road Ahead for Renewables
Despite the turbulence in other energy sectors, the renewable industry continues to forge ahead. TotalEnergies, the French oil and gas giant, announced a 21-year deal to power Google's data centers in Malaysia with renewable energy from its Citra Energies solar plant.
As the world navigates the complex interplay of AI, geopolitics, and energy markets, the renewable sector appears poised to capitalize on the growing demand for clean, sustainable power. Investors and policymakers will be closely watching to see how these trends unfold in the coming year and beyond.
Reporting based on coverage from CNBC, Reuters, the Financial Times, and OilPrice.com, December 15-16, 2025.