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USA Rare Earth (USAR) Climbs 13.9% on Bullish Outlook

By Angelica Ballesteros | October 21, 2025, 12:56 PM

We recently published 10 Big Names Beating Wall Street at its Own Game. USA Rare Earth, Inc. (NASDAQ:USAR) is one of the best performers on Monday.

USA Rare Earth snapped a four-day losing streak on Monday, jumping 13.92 percent to finish at $31.59 apiece as investors took heart from investment firm William Blair’s bullish coverage for the stock.

In a market note, William Blair gave an outperform rating on USA Rare Earth, Inc. (NASDAQ:USAR), alongside United States Antimony Corp., American Resources Corp., NioCorp Developments Ltd., and Royalty Management Holding Corp., on the belief that they were uniquely positioned to benefit from the surge in interest and investments in domestic rare earth production.

For USA Rare Earth, Inc. (NASDAQ:USAR) alone, William Blair highlighted the looming start of operations of a magnet facility that is expected to support its growth.

Earlier this month, USA Rare Earth, Inc. (NASDAQ:USAR) announced that it was in talks with the US government and that it was keeping it informed about its plans.

USA Rare Earth (USAR) Climbs 13.9% on Bullish Outlook
Copyright: vyacheslavsvetlichnyy / 123RF Stock Photo

The negotiations followed the Trump administration’s acquisition of significant stakes in other listed mining companies, namely MP Materials and Lithium Americas, in line with plans to prop up domestic supply and reduce reliance on imports.

While we acknowledge the potential of USAR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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