MP Tripled After Uncle Sam's Check – Don't Miss the Next One VIEW IN BROWSER 
Something exceptionally rare is happening in D.C.; something that has only happened a few times before in our nation's history… The U.S. government is buying equity stakes – in America's AI supply chain. Not grants, contracts, or tax credits but stock. Intel (INTC) was the deal that stole headlines. It was an unprecedented ~$9 billion government equity investment that handed Washington ~10% of the company's shares. But just weeks before, the White House wrote a $400 million convertible preferred check into rare-earths miner and magnet maker MP Materials (MP), complete with warrants, a rare-earth price floor, and a government offtake agreement. That stock has soared about 3X since June alone. 
If you're keeping score at home, that's America's leading chipmaker and its leading rare earths supplier with Uncle Sam on their cap tables (and winning on Wall Street). This is not business as usual. It's industrial policy by way of Wall Street. And it could create massive upside opportunities for investors able to identify who's next… Washington's Bold AI Strategy: Why Intel Got the First Big Check The U.S. government has subsidized industries before: railroads in the 1800s, defense primes during WWII, semiconductors in the 1980s, and, of course, the internet build-out in the 1990s. But the typical playbook was contracts, loans, or tax breaks. Rarely does Washington own shares – especially outside of dire extenuating circumstances, such as the 2008 financial crisis, when the U.S. government purchased ownership stakes in several banks and automotive companies. This 2025 Intel investment has changed that narrative. By taking an outright equity stake, the government is doing three things at once: - Securing a strategic chokepoint: Advanced semiconductor foundries are critical infrastructure for AI, defense, and the entire digital economy.
- Anointing a national champion: A White House investment effectively designates Intel as a preferred partner in America's industrial strategy.
- Indicating broader intervention: Other sectors central to AI – like energy, rare earths, satellites, robotics, and cybersecurity – should expect similar government backing.
And the signal from the capital was heard loud and clear in New York. Intel stock surged after its White House deal. And as we mentioned, MP stock has tripled since June, with most of that rally driven by the U.S.' stake. Wall Street understands: if the government is putting in a price floor and buying product for a decade, the downside is effectively capped – and the upside is essentially infinite. That's exactly why Wall Street is rushing to buy these “DC AI” stocks. Who's Next in Line for U.S. Government AI Investment? National Economic Council director Kevin Hassett told CNBC point-blank: after Intel, the White House “may make more corporate investments.” Commerce Secretary Howard Lutnick echoed the same sentiment. In other words, the Intel and MP deals are templates, not one-offs. So, what comes next? To answer that, we need to look at where the White House's AI priorities intersect with bottlenecks and national-security vulnerabilities: - Chips and packaging: Intel got the first bite, but GlobalFoundries (GFS) remains America's other trusted foundry – especially for defense, RF, and auto chips.
- Rare earths and magnets: MP got the first deal. But one horse in the national security race isn't enough. USA Rare Earth (USAR) is already producing magnets in Oklahoma and could be the next magnet maker to get a government backstop.
- Energy and nuclear power: In May, the White House signed executive orders to accelerate nuclear permitting, with a specific eye on powering AI data centers. BWX Technologies (BWXT), already building a microreactor for the Department of Defense (DoD), is an obvious candidate for expansion capital.
- Space: The Space Force just opened up its $13 billion NSSL Phase 3 contracts to new entrants. Rocket Lab (RKLB) has already been on-ramped and has a deepening National Reconnaissance Office (NRO)/DoD book. An equity kicker isn't out of the question. Similarly, Planet Labs (PL) and BlackSky (BKSY) are both under 10-year contracts with the NRO. And with the Russia-Ukraine war proving how essential commercial imagery is, bolstering these players with strategic investment makes sense.
- Robotics and autonomy: The DoD's Replicator initiative aims to field “thousands” of autonomous systems. Kratos (KTOS) is front-running with its Valkyrie combat drone. AeroVironment (AVAV) is delivering miniature munition Switchblades at scale. Either could see structured deals to accelerate production.
- Cybersecurity and data resilience: The federal zero-trust mandate is moving fast. CrowdStrike (CRWD), Zscaler (ZS), and Rubrik (RBRK) already hold FedRAMP certifications. Washington may not buy equity here, but it will write very large multi-year checks. And if data-recovery capacity is deemed critical, there's always the chance of a deeper investment.
- Frontier AI models: The DoD's Chief Digital and Artificial Intelligence Office (CDAO) has already inked $200 million prototype contracts with OpenAI, Anthropic, Alphabet (GOOGL), and xAI. OpenAI, in particular, sits at the intersection of frontier AI safety and national security. A structured government stake down the line would not shock us.
The Equity Shakeup and a New Era of AI Stock Picking For the first time since World War II, Washington isn't just contracting with industry… it's buying into it. The Intel and MP Materials deals show that when the government deems something critical to AI – and, thus, national security – it's willing to write equity checks, structure price floors, and sign 10-year offtake agreements. MP stock ripped after its deal with the U.S. government. That will not be the last time you see a “White House premium” baked into a company's valuation. Now the trick is spotting who gets the next check… Because if the U.S. is going to spend trillions on AI infrastructure and national security, you don't just want to invest in AI. You want to invest alongside the White House. If chips and rare earths are the first wave of government-backed AI bets, humanoid robotics could be the next. Tesla (TSLA) has already unveiled its Optimus robot, and management is clear: it’s not just a side project… It’s a core pillar of the company’s future. Every bot will require advanced sensors, actuators, power systems, and AI training chips – the same strategic chokepoints Washington is now funding directly. That means the real investment opportunity may not just be in Tesla itself but in the suppliers building the robotic nervous system of this new economy. Be the investor who spots that supply chain early… Because just as MP tripled on a government check, the next round of equity stakes could flow into the companies that make humanoid bots possible. Learn how to position yourself in the humanoid supply chain before Wall Street catches on. Sincerely, |
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