From Yahoo Finance: 2025-04-28 09:25:00

Nickel stocks are in the spotlight as the metal is crucial in manufacturing and abundant globally. Primary nickel production is expected to rise, with an excess of 150,000 tonnes projected in 2025. The global nickel market is booming, with the industry set to grow at a CAGR of 7.3% and reach $73.15 billion by 2032.

However, investing in nickel stocks can be challenging due to market fluctuations. Nickel prices dropped in early 2025 due to fears of a recession and industrial demand decline. Despite this, the long-term demand for nickel from electric vehicle batteries is expected to increase by 15% to 20% globally through 2030.

The nickel market faces challenges from increased supply, particularly from Indonesia, which accounts for about 50% of global supply. Geopolitical concerns, environmental issues, and changes in trade policies further complicate the market. S&P Global predicts LME 3M nickel prices to average $16,026/t in 2025, influenced by supply disruptions and trade policy changes.

S&P Global reports uncertainty in the Asian nickel market due to trade tensions and a supply surplus. Higher Indonesian production levels and weak demand from key industries like electric vehicles and stainless steel are expected to put pressure on the market. The global primary nickel market is forecasted to remain oversupplied in 2025.

TMC the metals company Inc. (NASDAQ:TMC) is a deep-sea mineral exploration firm specializing in polymetallic nodules. These nodules contain nickel, copper, cobalt, and manganese, crucial for industrial manufacturing and energy infrastructure. The company has seen significant growth in its stock price and technological milestones, shifting towards commercial production via U.S. regulatory channels.

TMC ranks 12th on the list of the 12 Best Nickel Stocks to Buy According to Hedge Funds. While TMC shows promise, there are AI stocks with potentially higher returns. Investors looking for AI stocks with significant upside should explore opportunities in the market.

Read more: Is TMC the metals company Inc. (TMC) Among the Best Nickel Stocks to Buy According to Hedge Funds?