Two specific copper mining stocks are currently sitting at perfect buy points. Here's exactly what to buy and why.
Everybody wants a dip until the market actually dips. Well, the dip is officially here. It is time to buy.
Why the Market Is Selling Off
The broader market is reacting to geopolitical fears after we invaded Iran, pushing the S&P 500 down 5.9% from its all-time highs. But nothing about the underlying US economy has really changed.
SPY dropped nearly 6% from its all-time highs.
We had a really nice tail end of 2025. The market was pretty flat for the last four or five months. Then we invaded Iran and a lot of people started panicking. Keep it all in perspective. A 5.9% drop off all-time highs is not a reason to abandon your strategy. It is a reason to look for opportunities.
The funny thing about investors is everybody wants a dip until it dips. Well, here it is. It's time to buy. So what are you going to buy?
Why buy Copper Mining Stocks Now?
AI has been a leading theme of this market for the last several years. Most of the big AI plays are fully valued and beginning to roll over.
Nvidia has gone nowhere for almost a year. Microsoft is in a nasty selloff.
But one thing is always going to be true with the AI trade: they cannot build any of the AI infrastructure without the raw materials to do so. Whether it's Nvidia, Microsoft, OpenAI, or Anthropic, it doesn't matter. All of them are using the same copper, the same steel, the same raw materials.
The AI trade, even with everything going on in Iran, has not fallen apart.
Hyperscalers Are Issuing Billions in Bonds
The big hyperscalers are spending all of their cash flow, all their profits, to build out AI infrastructure. The big five, your Amazon, your Google, etc., raised $121 billion in bonds last year. They are going hand over fist trillions of dollars into AI infrastructure.
Why is that significant? These companies never sell bonds. They don't need to. They are cash-printing machines. These are some of the smartest people in the world with access to the most capital, and they're going hand over fist trillions of dollars into the AI infrastructure.
Hyperscalers are spending all of their cash flow on AI infrastructure. The Big Five raised $121 billion in bonds last year.
Amazon is going negative cash flow for the year. They're spending everything they make and $28 billion more. Alphabet's free cash flow is collapsing 90%.
Regardless of what happens to these stock prices between now and a couple of years from now, the raw materials are the big play.
The Copper Supply-Demand Equation
There is massively more demand for copper than supply over the coming years. The companies mining that copper are going to see huge profits as prices rise.
Copper futures are showing a classic technical setup right now. The bread-and-butter breakout trade: a big rise higher, consolidation, tightening, supply absorption near the top, then a breakout for a big acceleration higher. That is the favorite place to buy.
Copper Futures daily chart showing the previous breakout level now acting as support, aligning with the 200-day moving average.
The next favorite place to buy is a retest of that breakout area. When a stock or commodity or any tradable asset makes a big breakout move, what was resistance holding it back becomes support after it pushes through. Sellers who were capping the price step aside, and that ceiling becomes a floor.
Copper is right at that support level now. The price fell to the 200-day simple moving average and is holding right in there. Significant 200-day moving average support as well as a previous breakout area, looking for a resurgence higher. That is a great buy point.
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The Copper Mining Stocks to Buy
The AI trend is going to play out for the next 5 to 10 years. We're playing it in a pick and shovel play with copper. By using miners, we get some extra upside because their profits will rise even faster than the price of copper itself.
Right now, two favorite copper stocks have the exact same setup as the underlying commodity. They offer strictly defined risk and massive upside potential.
Hudbay Minerals (HBM)
The first stock is Hudbay Minerals, ticker HBM. A big mineral play and a big copper miner.
This stock had a big run from $9 to $19. It compressed, shallowed out, and broke out. That led to a monumental run from $18 to $28. Now, the stock has rolled all the way over. It is sitting right on a previous breakout level and right at the 200-day simple moving average.
HBM pulled back to its 200-day moving average and previous breakout level in the $17 to $19 range.
The Strategy for HBM
Buy Zone: The $17 to $19 range. Phenomenal place to buy.
Risk Management: No need to risk more than 10% to 15% on this stock.
Profit Target: A move from the $18-$19 level back up into about $24 to $25 per share.
Upside Potential: This setup targets 35% to 40% on the upside.
I picked up 100 shares earlier and plan to add more. The technical alignment of the 200-day simple moving average and the previous breakout level creates a highly favorable risk-to-reward scenario.
Taseko Mines (TGB)
The second stock is Taseko Mines, ticker TGB. There is a zone buy in this one as well.
First, there was an initial breakout right through the $5 level. It ran in late 2025, came in, tightened up, broke out, and surged. There was also a three to four-week period right in that area with a ton of supply.
The stock just barely touched the zone on Thursday, coming down to a low of $5.48. Hopefully that was not the only chance to get in.
TGB daily chart with annotated buy zone between $5.00 and $5.50, showing the stock pulling back from highs.
The Strategy for TGB
Buy Zone: Between $5.00 and $5.50 per share.
Order Execution: Use buy limit orders. A buy limit order is an "or better" order. You will buy the stock, but there is a limit to how much you will pay.
Scaling In: Split your orders up. For example, place a good-till-cancelled order for 500 shares at $5.50, then place another limit order slightly lower at $5.25 for another 500 shares.
Stop Loss: Place a stop loss at $4.80, beneath the 200-day moving average.
Profit Target for TGB: An acceleration back up into the $8 to $8.50 range, which puts the trade somewhere in the 50% to 60% profit target.
It is possible you don't get any shares of Taseko Mines. That is something you have to be comfortable with. If you are not willing to risk missing the entry, just take it to the market. But this approach lets you set your price and wait for the pullback.
Why buy these Copper Mining Stocks?
Two trades: HBM (Hudbay Minerals) and TGB (Taseko Mines). Two big, highly profitable copper mining stocks. We are playing the AI trend that is going to play out for the next 5 to 10 years, through a pick and shovel play with copper. And we are getting some extra upside by using miners whose profits will rise even faster than the price of copper itself.
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Key Takeaways
The recent market pullback is relatively minor—only about 6% off all-time highs—and does not reflect any meaningful deterioration in the broader U.S. economy, making it a potential buying opportunity rather than a reason for panic.
While major AI stocks appear fully valued and are losing momentum, the long-term growth of artificial intelligence remains intact, shifting the real opportunity toward the infrastructure that powers it rather than the companies themselves.
Copper is emerging as a critical investment theme because AI infrastructure relies heavily on it, and a growing imbalance between supply and demand is expected to drive prices higher in the coming years.
Massive spending by major technology companies on AI infrastructure—despite declining cash flow—signals strong, sustained demand for raw materials, reinforcing the bullish case for commodities like copper.
Copper mining stocks are positioned to benefit disproportionately from rising copper prices, and current price pullbacks into key technical support levels could be attractive entry points for investors.
DISCLAIMER: Traders Agency does not offer financial advice. The information provided is for educational purposes only and should not be considered financial advice. Traders Agency is not responsible for any financial losses or consequences resulting from the use of the information provided. Trading carries inherent risks and may not be suitable for all individuals. You are advised to conduct your own research and seek personalized advice before making any investment decisions, recognizing the potential risks and rewards involved.
