$10,000 in USA Rare Earth Stock at Its High Is Worth About $4,650 Today
Key Points
USA Rare Earth stock hit a lifetime high in October 2025 and has fallen more than 50% from that level.
The company has some promising potential catalysts in the critical minerals space, but it's still a relatively high-risk play.
- 10 stocks we like better than USA Rare Earth ›
USA Rare Earth (NASDAQ: USAR) is a critical minerals specialist that went public through a merger with special purpose acquisition company (SPAC) Inflection Point Acquisition Corp. II in March 2025. The company saw some volatile trading in the months immediately following its debut, but it went on to hit a lifetime high in October of that year following reports that the company was discussing a potential partnership with the White House and rumors that the U.S. government could take a stake in the business.
In January 2026, USA Rare Earth actually did announce that the U.S. government was establishing a roughly 10% ownership stake in the company that could expand to 16% with the exercise of warrants -- but its share price has still fallen far below the high it hit last year. As of this writing, the stock is down roughly 53.5% from that valuation peak. In other words, a $10,000 investment made in the stock at that point would now be worth roughly $4,650.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
While the U.S. government's desire to increase its ability to source critical minerals domestically and reduce its dependence on minerals from China presents a potentially powerful catalyst for USA Rare Earth's business, the company is still in a relatively early stage of expanding its operations. Along those lines, the company generated just $11.5 million in revenue across the first half of this year. Meanwhile, the mining and processing player has a market capitalization of roughly $4.4 billion.
The company's move to acquire Brazilian rare-earth specialist Serra Verde in a roughly $2.8 billion deal should dramatically expand USA Rare Earth's sales footprint and earnings potential, but the deal being primarily funded with stock also means that shareholders will see significant dilution. USA Rare Earth has growth opportunities on the horizon that could help it bounce back and climb well above its past valuation peak, but investors should approach the stock with the understanding that it's a speculative bet.
Should you buy stock in USA Rare Earth right now?
Before you buy stock in USA Rare Earth, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and USA Rare Earth wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $435,803!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,577!*
Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 2, 2026.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
