Coffee has outperformed AI in terms of returns. Which stocks stand to benefit from this?

Coffee has become one of the most profitable investments on the market in recent months, outperforming even artificial intelligence-related stocks, according to CNBC. Coffee prices are rising despite record production volumes: demand remains steady, and weather conditions are creating additional uncertainty for the market. Analysts have identified two stocks that could benefit from this trend.

Coffee futures have risen 13% over the past three months, outperforming the S&P 500 index by more than three times. During the same period, the VanEck Semiconductor ETF, one of the main beneficiaries of the AI boom, rose by only 2.2%.

Since June, prices for Arabica coffee have risen by about 30%, and the outlook for supplies in the first half of 2027 has become more uncertain. An additional factor this week was an earthquake in Colombia, which disrupted traffic on a road used for a significant portion of the country’s exports, according to CNBC, citing Jefferies analyst Kaumil Gadjrawal.

Extreme weather events in major coffee-growing regions may also have contributed to price spikes in recent years. Earlier this year, the research organization Climate Central highlighted the impact of extreme weather on global coffee production.

Rising coffee prices could provide a boost to manufacturers and retailers of ready-to-drink coffee products. HSBC upgraded its rating on coffee capsule manufacturer Keurig Dr Pepper from “Hold” to “Buy” and raised its price target from $37 to $40. The new target implies growth potential of more than 28% relative to the closing price on August 13. The outlook for the company’s U.S. coffee business is improving, and the soft drink segment continues to perform strongly. This conclusion was reached by HSBC analyst Sorab Daga, as quoted by CNBC. Keurig Dr Pepper shares have risen 11% year-to-date and are currently trading at around $31.

There are also positive signs for the Starbucks coffee chain. The chain’s stock has risen 29% since the start of the year and is currently trading at around $108. If Starbucks shares begin to move toward their target price of $125, the momentum could accelerate, paving the way to all-time highs, noted CappThesis founder Frank Cappellieri, according to CNBC.

This article was AI-translated and verified by a human editor