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Today's Bonus Content Betting on the Backbone: 3 AI Infrastructure Stocks Written by Jeffrey Neal Johnson. Published 11/25/2025. 
Key Points - NuScale Power holds the only certified small modular reactor design and recently secured a commercial agreement to deploy at a massive scale.
- MP Materials has solidified its position as a strategic asset with government pricing support, ensuring revenue and a balance sheet ready for vertical expansion.
- USA Rare Earth is closing the domestic supply chain loop with a key acquisition and remains on track to commission its magnet manufacturing facility early next year.
Many investors remember the dot-com bubble of the late 1990s. Back then, speculative websites with little or no revenue collapsed, wiping out billions in market value. The companies that built the internet's physical infrastructure — fiber optic cables, servers and routers — did not disappear; they became the permanent foundation of the modern digital economy. Today's artificial intelligence (AI) revolution looks poised for a similar inflection point. AI valuations are soaring, but they depend on scarce and rapidly growing physical inputs. Unlike the 1990s, when the market suffered a fiber glut, the AI era faces a shortage of reliable, abundant electricity to power data centers and of rare-earth minerals to build advanced hardware. The market's rally has investors feeling confident, but Whitney Tilson believes the real story is happening beneath the surface. His team's system recently flagged Robinhood before its big move — not because of headlines or hype, but because the mechanics driving today's market are shifting in ways most investors don't yet see.
Tilson says we're in the early stages of a broader reset that could widen the gap between those who adapt and those who don't. As part of Stansberry's Black Friday event, his latest research is available at the lowest price of the year, with a full breakdown of the trends he believes will shape the next phase of this market. Review everything here and claim your Black Friday access That structural scarcity creates a tangible floor for investors. While software stocks may remain volatile, the infrastructure that powers them represents a real-asset play. Three companies are positioned to benefit from this power-and-materials dynamic and can serve as a hedge against tech sector volatility. The New Bandwidth Is Baseload Power Just as the early internet required massive bandwidth, AI data centers require enormous amounts of electricity. These facilities run 24/7, creating demand for baseload power that intermittent renewables like wind and solar cannot provide on their own. That reality has moved advanced nuclear energy from niche research toward a utility-grade necessity. NuScale Power Corporation (NYSE: SMR) is the regulatory leader in the small modular reactor (SMR) space. It holds the first and only SMR design certified by the U.S. Nuclear Regulatory Commission (NRC). That regulatory advantage recently translated into major commercial validation. In September 2025, NuScale's partner signed a landmark agreement with the Tennessee Valley Authority (TVA) to deploy up to 6 gigawatts (GW) of SMR capacity. Despite that progress, NuScale's stock has pulled back to around $19.85 following a $750 million at-the-market equity offering in November. While dilutive, the offering strengthened the company's balance sheet: - Cash Position: NuScale holds approximately $753 million in cash and investments and has zero debt.
- Revenue Growth: In the Q3 2025 earnings report, revenue rose to $8.24 million, up more than 1,600% year-over-year (YOY), driven by engineering fees.
- Contextualizing the Loss: The company reported a net loss of $532.6 million, most of which ($495 million) was a one-time, non-cash expense related to the ENTRA1 partnership — not cash burned from operations.
NuScale's selection for the U.S. Army's Janus Program also signals that its technology is relevant to national defense, providing government backing that many commercial tech stocks lack. A new agreement with major shareholder Fluor Corporation (NYSE: FLR) to monetize its stake in an orderly fashion through 2026 removes a prior overhang of selling pressure. The Hardware of 2026 Is Rare Earths If the 1990s internet relied on switches and routers, today's AI-driven robotics, drones and advanced cooling systems depend on high-performance permanent magnets — and those magnets require rare-earth elements. MP Materials Corp. (NYSE: MP) is the Western Hemisphere's dominant producer of these critical materials. On Nov. 24, 2025, BMO Capital Markets upgraded the stock to Outperform with a $75 price target, highlighting the value of a non-Chinese supply chain for rare earths. MP Materials has also shifted its business model. In the third quarter of 2025, the company stopped selling raw concentrate to China to comply with U.S. defense contracts. While that reduced total revenue by about 15%, it was offset by higher-value revenue streams: - Production Records: The company produced a record 721 metric tons of Neodymium-Praseodymium (NdPr) oxide, a 51% increase YOY.
- New Revenue: MP generated $21.9 million from its new Magnetics segment, demonstrating the benefits of vertical integration.
- Fortress Balance Sheet: The company holds nearly $1.94 billion in liquidity, giving it runway to expand while competitors face tighter finances.
Crucially, MP Materials entered into a Price Protection Agreement (PPA) with the Department of Defense in October 2025. That arrangement establishes a price floor of $110 per kilogram for NdPr, helping to insure the company's revenue against downside price swings — a level of revenue protection uncommon among standard tech names. The Vertical Challenger: USA Rare Earth While MP Materials is the established leader, the market seeks a fully integrated mine-to-magnet alternative — and USA Rare Earth Inc. (NASDAQ: USAR) is positioning itself to fill that role. The company closed a major step in its vertical integration strategy by acquiring Less Common Metals on Nov. 20, 2025. That acquisition gives USA Rare Earth immediate metal-making capabilities, closing the operational loop between its Round Top mine in Texas and its magnet manufacturing facility in Oklahoma, which is on track for commissioning in Q1 2026. USA Rare Earth's stock has faced severe pressure recently, dropping about 48% over the last 30 days. Much of that decline appears to be technical rather than fundamental. On Oct. 30, the company issued a notice to redeem all outstanding warrants with a Dec. 1, 2025 deadline. That notice forces warrant holders to either exercise their rights to buy stock (bringing cash into the company) or sell the warrants, often creating temporary, heavy selling pressure. After the Dec. 1 deadline, the artificial selling pressure should ease. The company has also received a $125 million equity investment and raised an additional $163 million from warrant exercises. With more than $400 million in cash and tangible progress toward production, the current share price may represent a discount to the company's underlying value. Buying the Foundation, Not the Facade Current AI-bubble fears focus on lofty software valuations, not on physical usage. Even if software multiples compress, the physical consumption of energy and materials to run AI models is structurally increasing. Data centers require uninterrupted power, and robots and motors require magnets. NuScale Power, MP Materials and USA Rare Earth are unavoidable toll booths on the road to an AI-driven economy. Whether through atoms of nuclear fuel or the magnetic pull of rare earth minerals, these companies provide essential inputs for the next decade of growth. They marry upside exposure to AI demand with the tangible protection of critical infrastructure and explicit government support. In a market debating the durability of digital hype, investing in the foundation — rather than the facade — may be the safer play.
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