Nickel is a metal that is widely used in its manufacturing. This is an important component of stainless steel and is highly rated for its corrosion resistance. It is also one of the most abundant resources. According to the International Nickel Research Group, primary nickel production will increase globally by 4.6% in 2024 and an additional 3.8% in 2025. According to Nornickel, approximately 150,000 tons of nickel will increase globally in 2025, mainly in the high-grade nickel segment.
The nickel industry is booming. According to Fortune Business Insights, the global nickel market is estimated to be $416.1 billion in 2023, and is projected to continue to increase from $445.9 billion in 2024 to $7.315 billion by 2023. Additionally, the US nickel market is expected to expand to $2.01 billion by 2032, led by strong demand from the electric vehicle industry, ongoing infrastructure projects and stainless steel production.
However, investing in nickel stock can be challenging. Mining is cyclical and stock prices fluctuate along the market price of nickel. According to S&P Global Commodity Insights, the fear of a recession and lower industrial demand caused nickel prices to fluctuate in early 2025, dropping from about $17,000 per metric tonne in March to under $16,000, according to S&P Global Commodity Insights. Long-term demand images remain advantageous as nickel is required for NCM and NCA batteries in electric vehicles. By 2030, demand for nickel from EV batteries is expected to increase by 15% to 20% worldwide (Irena). The long-term supply agreement is negotiated by two major automakers to ensure access to battery-grade nickel.
However, prices are under pressure, especially due to increased supply from Indonesia, generating over 1.6 million tonnes in 2024, accounting for around 50% of global supply. Despite high costs and environmental concerns, Indonesia’s export ban and the growth of HPAL projects are changing the situation in the supply chain. Environmental and legal barriers exist, but the Philippines is also increasing its production. The market is further complicated by geopolitical concerns. While the EU is searching for alternatives in countries such as Canada and Australia, Western sanctions are forcing Russian supplies to re-route China. Trump’s plans, including the possibility of tariffs on China’s nickel, focus on extracting essential resources for the United States. According to S&P Global, the price of LME 3M nickel is expected to average 16,026/t/t in 2025, with supply disruptions and changes in trade policy being the main concern.
According to a latest report from S&P Global, the Asian nickel market could continue to face pressure in the coming months in light of growing uncertainty due to tariff-driven global trade tensions. This is due to the supply surplus fueled by high production levels and weak demand in Indonesia from major nickel-consuming industries such as electric vehicles and stainless steel. “We’ve been working hard to get the most out of our business,” said Jason Sapporo, senior analyst at Metals and Mining Research at S&P Global Commodity Insights.
“In the context of a volatile global macroeconomic background, the global primary nickel market will remain oversupplied in 2025 and is expected to expand this year, despite challenges such as the availability of Indonesian ore and the government’s potential royalty rates for nickel products.”
12 Best Nickel Stocks to Buy According to Hedge Funds
A close-up of precious metals alloyed into special metal products.
In this article, we sifted through online rankings to create an initial list of 20 nickel stocks. From the resulting dataset, we selected 12 stocks with the most hedge fund investors to measure hedge fund sentiment in the fourth quarter of 2024 using Insider Monkey’s database of 1,009 hedge funds. As of April 25, 2025, the market capitalization of the stock was used as a tiebreaker when two or more stocks are investing the same number of hedge funds.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. The quarterly newsletter strategy has chosen 14 small and large caps per quarter, returning 275% since May 2014, breaking the benchmark by 150 percentage points. (For more information, please see here).
Number of hedge fund holders: 15
Materion Corporation (NYSE: MTRN) products include copper-based alloys, special coatings, inorganic chemicals and powders, valuable and non-preferred special metals, and specialized engineering beryllium. The company’s main atoms are ruthenium, silver, tin, gold, nickel, palladium, platinum, cobalt, copper, aluminum, beryllium and tantalum.
Despite the market sluggishness, Materion Corporation (NYSE: MTRN) released solid financial results in the fourth quarter, which ended December 31, 2024. The company’s value-added sales increased 2% year-on-year to $296.1 million. Adjusted EBITDA rose 15% to $61.5 million, and margin improved to 20.8%. Best nickel stock. 10% of the company’s adjusted revenue per share ($1.55) was primarily a result of cost management and operational efficiency.
However, segment performance varies, and the performance material section shows growth. Value-added sales for the segment increased by 5% to $195.8 million, while EBITDA improved by 17% to $78.6 million. EBITDA rose to 18.7% year-on-year, while Materion Corporation (NYSE: MTRN)’s electronic materials area reported sales increased by only 1%. Meanwhile, Precision Optics Business sales fell 17% to $21.7 million, resulting in an EBITDA loss of $1.1 million. This is due to the volume and the undesirable product mix.
Overall, Mtrn 10th place On a list of the best nickel stocks to buy according to hedge funds. While we acknowledge the potential as an investment in MTRN, our conviction lies in the belief that AI stocks provide higher returns and hold a greater commitment to doing so within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you’re looking for AI stocks that are more promising than MTRN but trade less than five times the revenue, check out our report on this Cheapest AI stocks.
