Trump Could Take a Stake in USA Rare Earth Next. Should You Buy USAR Stock ASAP?

Core Viewpoint - USA Rare Earth (USAR) is in close communication with the Trump administration, which has led to a significant rally in its stock price, suggesting potential government interest in taking an equity stake in the company [1][3]. Group 1: Stock Performance - USAR stock rallied nearly 15% on Friday, trading nearly 400% above its year-to-date lows [2][3]. - The stock price surge is attributed to speculation regarding a federal stake that could de-risk the company's development and provide crucial capital [3][4]. Group 2: Government Support Implications - A federal investment could stabilize demand for USAR's products and protect against volatile rare earth prices [4]. - Such support could accelerate project timelines for the company's Texas mine and Oklahoma magnet facility, attracting broader investor capital [4]. Group 3: Investment Risks - Despite positive signals, USAR remains a high-risk investment as it is currently pre-revenue, with its valuation driven by speculation and national security concerns [5][6]. - Wall Street views the recent stock price rally as significantly overdone, with a consensus rating of "Strong Buy" but a mean target indicating potential downside of over 30% [7][8].