3 Stocks Trump Could Back Next as USA Rare Earths Revives the Federal Catalyst Trade

Core Viewpoint - The article discusses the strategic importance of rare earths in the context of the AI industry and the U.S. government's efforts to reduce dependence on China, which dominates the processing market [1][6][23]. Group 1: Market Reactions and Stock Movements - The announcement from the U.S. government led to a significant increase in stock prices, particularly for USAR, which rose from approximately $10 to nearly $30 within weeks [3][4]. - The market's reaction to government involvement often leads to rapid stock repricing, with some investors chasing momentum while others assess the implications of government actions [2][5]. Group 2: Investment Opportunities - Lango identifies three companies as potential beneficiaries of government support in strategic sectors: GlobalFoundries, Oklo, and Energy Fuels [9][10][15][19]. - GlobalFoundries is highlighted for its role in chip manufacturing, particularly in semiconductors that are critical for industrial and defense applications [12]. - Oklo is positioned as a candidate in the nuclear sector, benefiting from government prioritization of energy and its connections within the AI ecosystem [15][16]. - Energy Fuels is noted for its existing processing infrastructure, which is crucial for meeting domestic demand for rare earths and uranium [19][20]. Group 3: Strategic Insights - The shift from a monopoly to a duopoly in the rare earth market is seen as a positive development, as it suggests a larger domestic industry supported by government initiatives [6][7]. - The focus for investors should be on long-term expectations and the potential for government backing to accelerate timelines and reduce operational risks [8][22]. - The article emphasizes the importance of tracking actual changes in funding, contracts, and project milestones rather than reacting solely to headlines [24].