President Trump's Stock Bets Have Crushed the Market. Should You Buy Them Now?

"The Trump administration took the historic step of directly investing U.S. government funds into four publicly traded companies in 2025 to advance national security interests in critical sectors like semiconductors and minerals. These equity stakes - totaling over $10 billion - aimed to bolster domestic supply chains amid tensions with China. The investments include a 15% stake in MP Materials ( ) for $400 million, a 9.9% stake in Intel ( NASDAQ:INTC ) for $8.9 billion,"

"MP Materials received a $400 million investment on July 10 for a 15% stake including warrants, funding magnet production at its Mountain Pass facility. The stock, acquired around $30 per share, generated a 68.4% return for the government in 2025, and a 22.7% return year-to-date, for a cumulative return of 106.5%. The gains reflect efforts to counter China's 90% supply dominance in rare earths used for defense and electric vehicles."

"Additionally, the government secured a non-economic golden share in United States Steel in June in exchange for approving its acquisition by Japan's Nippon Steel. It was also granted veto rights over key decisions, although it has no financial ownership. The government's approach marks a shift from subsidies or policy encouragement to ownership, prioritizing U.S. production in strategic areas. Intel saw the government acquire 433.3 million shares at $20.47 each on August 22, 2025, as part of converting CHIPS Act and defense grants into equity."

U.S. government invested over $10 billion in 2025 by taking equity stakes in four publicly traded companies to secure supply chains for semiconductors, rare earths, lithium, and metals. Stakes included 15% of MP Materials for $400 million, 9.9% of Intel for $8.9 billion, 5% of Lithium Americas plus a 5% Thacker Pass joint-venture position, and 10% of Trilogy Metals for $35.6 million. A non-economic golden share was granted in United States Steel with veto rights during its acquisition approval, without financial ownership. The approach shifts from subsidies to direct ownership to boost U.S. production amid tensions with China, and MP Materials posted a 106.5% cumulative return.

Read at 24/7 Wall St.