MP Materials shares jump 20% following major investments

MP Materials shares have jumped 20% following significant investments from Apple and the Department of Defense.

MP Materials Surges After Apple and DOD Investments

MP Materials shares surged by 20% recently after news emerged that Apple plans to invest $500 million in the rare earths company. This announcement followed the Department of Defense acquiring a 15% stake in MP Materials, highlighting the government’s commitment to reducing reliance on foreign sources for rare earth metals, which are essential for national security. The stock has seen a remarkable rise of nearly 400% since the beginning of the year and is up 70% this month alone. As the stock approaches a projected price target of around $85, investors are advised to monitor critical support levels at $39 and $30 for potential profit-taking opportunities.

The recent investments from Apple and the Department of Defense signal a growing recognition of the strategic importance of domestic rare earths production. This trend not only boosts investor confidence in MP Materials but also reflects a broader initiative among U.S. firms to foster local supply chains amid global uncertainties. The stock's remarkable performance reveals significant bullish sentiment, although the overbought indicators suggest caution for prospective investors. As competition in the rare earths sector heats up, MP Materials could play a pivotal role in the U.S. industrial landscape.

Highlights

As the rare earths market evolves, MP Materials remains a focal point for investors and policymakers alike.