We recently compiled a list of the 12 Best Nickel Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where ATI Inc. (NYSE:ATI) stands against the other nickel stocks.
Nickel is a metal that is used extensively in manufacturing. It is a key component of stainless steel and is valued for its corrosion resistance. It is also among the most abundant resources. According to the International Nickel Study Group, primary nickel production will rise by 4.6% globally in 2024 and then by an additional 3.8% in 2025. About 150,000 tonnes of nickel will be in excess globally in 2025, according to Nornickel, mostly in high-grade nickel segments.
The nickel industry is booming. As per Fortune Business Insights, the size of the global nickel market was estimated at $41.61 billion in 2023 and is projected to keep growing at a compound annual growth rate (CAGR) of 7.3%, from $44.59 billion in 2024 to $73.15 billion by 2032. In 2023, Asia Pacific held an 82.62% market share, dominating the nickel market. Furthermore, it is anticipated that the nickel market in the United States will expand to a size of $2.01 billion by 2032, led by the electric vehicle industry, continuous infrastructure projects, and strong demand from the production of stainless steel.
However, nickel stock investing might be challenging. Mining businesses are cyclical, and stock prices fluctuate in line with the market price of nickel. Fears of a recession and a decline in industrial demand have caused nickel prices to fluctuate in early 2025, dropping from around $17,000 per metric ton to less than $16,000 in March, according to S&P Global Commodity Insights. Since nickel is necessary for NCM and NCA batteries in electric vehicles, the long-term demand picture is still favorable. Through 2030, the demand for nickel from EV batteries is anticipated to increase by 15% to 20% globally (IRENA). Long-term supply agreements have been negotiated by two major automakers to guarantee access to battery-grade nickel.
That said, prices have been under pressure due to the expansion in supply, particularly from Indonesia, which produced over 1.6 million metric tons in 2024 and accounts for about 50% of the global supply. Despite high costs and environmental concerns, Indonesia’s export prohibition and the growth of HPAL projects are changing the supply chain landscape. Although environmental and legal barriers exist, the Philippines is also increasing its output. The market is further complicated by geopolitical concerns. Western sanctions are forcing Russian supplies to reroute to China, while the EU looks for alternatives in countries like Canada and Australia. Trump’s plans, which include possible tariffs on Chinese nickel, have placed an intense focus on essential resource extraction in the United States. LME 3M nickel prices are expected to average $16,026/t in 2025, according to S&P Global, with supply disruptions and changes in trade policy being the main concerns.
According to the latest report by S&P Global, in light of growing uncertainty from tariff-led global trade tensions, the Asian nickel market may continue to face pressure in the months ahead. This will be due to a supply surplus fueled by higher Indonesian production levels and weak demand from key nickel-consuming industries, such as electric vehicles and stainless steel. Jason Sappor, metals and mining research senior analyst at S&P Global Commodity Insights, stated:
“Amid an unstable global macroeconomic backdrop, we expect the global primary nickel market to remain oversupplied in 2025, with production from Indonesia forecast to expand further this year, despite challenges like tight nickel ore availability and a potential royalty rate hike on nickel products by the government,”
“A slowdown in global economic activity would dent global primary nickel demand in a market already grappling with oversupply,” “further evolutions in the Trump administration’s trade tariff policies, we expect nickel prices to remain volatile in the near term.”
A worker in safety gear welding a complex titanium component in a factory setting.
Our Methodology
For this article, we sifted through the online rankings to form an initial list of the 20 Nickel Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock’s market cap as of April 25, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
ATI Inc. (NYSE:ATI)
Number of Hedge Fund Holders: 45
ATI Inc. (NYSE:ATI) manufactures and markets complex components and specialty materials. The HPMC business manufactures a range of materials, including superalloys, nickel- and cobalt-based alloys, titanium, and titanium-based alloys. The AA&S section manufactures zirconium and related alloys, such as hafnium and niobium, nickel-based alloys, titanium, and titanium-based alloys, among others. It is ranked second on our list of the Best Nickel Stocks.
The firm reported $1.2 billion in revenue for the fourth quarter that concluded on December 29, 2024, which is a 10% year-over-year growth and a 12% sequential gain. Adjusted EBITDA hit $210 million, which was higher than expected. Rising to $4.4 billion, ATI Inc. (NYSE:ATI)’s full-year sales were the highest since 2012 and represented a 5% increase over 2023. Jet engine revenue jumped to 9%, airframe revenue increased by 4.5%, and aerospace and defense continued to be major growth drivers.
However, the defense market, a major buyer of magnesium-based alloys from ATI Inc. (NYSE:ATI), saw a 38% sequential increase in Q4 2024 and is expected to grow by an additional 7% in 2025. A potential $200 billion increase in U.S. defense funding, of which 50% goes toward its programs, supports this expansion. Additionally, the firm secured $4 billion in new client commitments in 2024, strengthening its long-term revenue pipeline.
Record levels of output and operational efficiency have resulted from the company’s large investments in AI technology and equipment reliability. ATI Inc. (NYSE:ATI) announced $4 billion in new sales agreements, and higher defense spending is expected to benefit its products.
Benchmark maintained its Buy rating on the company shares and increased its price objective from $80 to $81. The analyst informs investors that ATI Inc. (NYSE:ATI)’s FY25 projection “looks beatable,” backed by record MRO backlogs, and that the company is well-positioned with rising titanium capacity to experience faster growth after FY25.
Overall, ATI ranks 2nd on our list of the 12 Best Nickel Stocks to Buy According to Hedge Funds. While we acknowledge the potential of Nickel companies, our conviction lies in the belief that 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 ATI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
