Trump’s ‘Do Magnets’ Push Could Spark the Next Intel-Style Rally — 2 Stocks to Watch (UPDATED)
Key takeaways
- Trump’s magnet push and federal equity stakes could ignite a new rally for U.S. rare‑earth producers MP and USAR, mirroring the recent surge in legacy tech giants.
- MP 15% stake for $400 million
- USAR 10% stake for $1.6 billion
- MP 10‑year offtake agreement
What happened
President Donald Trump urged the U.S. to "do magnets," spotlighting rare‑earth producers MP Materials and USA Rare Earth (USAR) after similar pushes for Intel (INTC) and Dell (DELL). The Defense Department bought a 15% stake in MP for $400 million and a 10% stake in USAR for $1.6 billion, coupled with long‑term offtake agreements and price floors for their magnet facilities. Trump’s comments have already sparked a rally in legacy tech stocks, and investors are now watching whether the newly…
Why it matters
The federal backing turns rare‑earth magnets into critical defense infrastructure, potentially unlocking a new growth engine for U.S. industry. With China dominating the global supply, the U.S. could secure a strategic advantage and create jobs. The equity stakes and offtake contracts provide MP and USAR with capital…
Short-term and longer-term
Short-term. Short‑term traders should watch MP and USAR for potential upside as the market digests the new equity stakes and offtake contracts.
Longer-term. Over the next few months, investors should assess whether the government backing translates into sustained revenue growth for MP and USAR.