RJ Hamster
The U.S. Is Mobilizing for AI Dominance
The DeepSeek Moment One Year Ago Kicked Off the Next Phase of AI Investment
It seemed like the AI megatrend had hit a brick wall.
Last January, the Chinese AI research lab DeepSeek released its much cheaper large language model, and many investors felt like all their AI bets were doomed.
DeepSeek was developed at a fraction of the cost of other models, and it challenged the wisdom of counting on U.S. firms to win the race for AI dominance.
The panic in the market was illustrated in the chart for AI poster child Nvidia (NVDA). Investors worried that with a cheaper AI solution, Nvidia’s pricing power would collapse. The stock dropped about 20% in one day, as you can see on the far right of the chart below.
The media was quick to pick up the story that America could lose the race for AI dominance, and with it, our national security.
From the BBC:
From CBS News:
That fear wasn’t unwarranted. The stakes are real.
Even before the DeepSeek news, President Donald Trump had declared that the United States must win the war for AI dominance – for our economic and national security.
One year later, Trump isn’t just making speeches. He is using taxpayer money to meet the goal.
The federal government isn’t just cutting regulations or fostering investment. It’s taking a direct stake in organizations that can help secure victory.
I’ll describe one stock today that has already been a big winner of this new government policy.
And we’re going to talk about how to find more.
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What I’ve uncovered about the true impact of President Trump’s tariffs and DOGE initiative has left me deeply troubled. As someone who worked inside the Federal Reserve system and managed billions for America’s wealthiest families, I recognize the warning signs others miss. I urge you to see my urgent message immediately. The window for preparation isn’t just closing — it’s slamming shut. Watching this may be the most consequential few minutes you spend this year.
When America Decides to Win
Looking back one year later, the DeepSeek panic makes sense. Investors were reacting to the possibility that the center of gravity in AI could shift away from the United States.
But that fear ignored one of the main lessons from history: America doesn’t sit still when it faces a strategic threat.
When the stakes are high enough, when America decides it wants to win, the U.S. government doesn’t simply encourageprivate industry.
It mobilizes it. It funds it. It clears obstacles.
And it quietly begins choosing winners.
We’ve already seen this playbook in action – especially in one area most investors overlooked until it became central to the AI story: rare earths.
For years, rare earth metals were treated like a niche commodity story. Now, everyone realizes that rare earths are a national security story.
They’re the raw materials behind the motors, magnets, robotics systems, drones, and advanced electronics that modern AI infrastructure is built on. But because they were classified as “niche commodities,” the U.S. neglected its domestic sources.
As a result, China controls a huge chunk of the supply chain.
After the Trump Administration declared that we need to win this AI war, the rare earth metals supply chain was a likely target for investment.
That’s why Luke Lango first selected USA Rare Earth (USAR) back in November as an early-stage, high-beta way to play America’s bid to reshore rare earth magnets.
Luke’s investment case was straightforward: AI-driven electrification – robots, EVs, drones, satellites, and data-center hardware – depends on rare-earth permanent magnets, and China’s dominance in mining, processing, and magnet production has turned these materials into a national-security priority.
Washington was already backing U.S. alternatives with real money and support, and USAR sits in that policy tailwind as a potential “pure-play” levered to magnet economics if it executes.
In November, Luke summarized his stance this way,
If you’re building a bull case, the combo of scarce U.S. magnet capacity, a uniquely heavy-rare earth element-rich deposit, and a policy regime willing to underwrite “mine-to-magnet” champions gives USAR a real shot at evolving from speculative story stock into a strategically important piece of the AI-era materials stack.
On Monday, the federal government announced it would inject $1.6 billion into USAR to help shore up the domestic supply of rare-earth minerals.
The stock took off.
How to Profit From the Government’s Plans
The government isn’t done.
The Trump Administration has launched the Genesis Mission. Like the Manhattan Project and the Apollo Mission before it, the goal is to secure an American victory in a race against its competitors.
Its goals are to:
- Use AI to accelerate energy advancements
- Invest in a quantum ecosystem for scientific breakthroughs, and
- Develop AI for national security
Aside from securing America’s dominance in the world, the Manhattan Project and the Apollo Program made savvy investors wealthy.
History has shown that when the government decides to throw its financial weight around, the financial results can be spectacular. Companies like DuPont and Boeing delivered gains of 1,844% and 24,400% respectively, during previous government spending sprees.
This time, 52 specific companies have been named to win the AI race against China, with hard deadlines starting February 22nd.
You might expect the list of companies to contain the names we see every day, like Nvidia or Microsoft. But these companies are not household names. Instead, they are small companies in quantum computing, nuclear energy, and advanced semiconductors.
After two months of analysis, Luke is ready to share the names for your portfolio. He unveiled a new free presentation on Tuesday that is focused on the next major catalyst tied to AI, national security, and U.S. industry.
The DeepSeek debut was a big moment in the race for AI dominance, but most people misinterpreted it. It was the kickoff to American investment to ensure victory, known as the Genesis Mission.
Luke can help you get in front of that title wave with his Genesis Missionpresentation.
Enjoy your weekend,
Luis Hernandez
Editor in Chief, InvestorPlace
