President Donald Trump recently urged the American industrial base to “Do magnets,” placing a massive spotlight on a vulnerable U.S. supply chain and heavily backed domestic producers like MP Materials Corp. (NYSE:MP) and USA Rare Earth Inc. (NASDAQ:USAR).
Following explosive, politically driven stock rallies for legacy tech giants like Intel Corp. (NASDAQ:INTC) and Dell Technologies Inc. (NYSE:DELL), investors are now weighing whether these federally funded rare-earth companies are the market’s next breakout stars.
A Presidential Mandate to ‘Do Magnets’
Speaking at the Defense and Innovation Summit in Carlisle, Pennsylvania, on July 15, Trump delivered a clear directive to American enterprise.
“Somebody out there, I hope you’re all brilliant people. Magnets. Do magnets,” he declared. Pointing to the critical national security need for rare earth permanent magnets—a market currently dominated by Chinese manufacturing—he added, “Okay, I’ll tell you how to make money. Do magnets… I guarantee it’s going to be a success.”
