Could Investing $10,000 in USA Rare Earth Make You a Millionaire?

Source The Motley Fool

Key Points

  • USA Rare Earth has potential to deliver significant upside.

  • The capital intensity of mining and competition from other rare-earth miners make it unlikely that USA Rare Earth will grow into a $380 billion company.

  • Motley Fool Issues Rare "Total Conviction" Buy Alert ›

I'll get straight to the point: Investing $10,000 in USA Rare Earth (NASDAQ: USAR) could be a worthy endeavor for long-term wealth building, but it likely won't make you a millionaire on its own.

For starters, USA Rare Earth is a rare-earth mining company. Its assets include the Round Top deposit in Texas, one of the few major U.S. deposit containing rare earths like dysprosium and terbium, both of which are essential for manufacturing permanent magnets. It also plans to manufacture magnets from its facility in Oklahoma, while also producing rare earths from a mine in Brazil.

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 »

Obviously, with the U.S. in need of a domestic rare-earth supply chain, there's plenty to like about USA Rare Earth. But turning $10,000 into $1 million requires a 100-fold return. USA Rare Earth's market cap is already around $3.8 billion. A 100-fold gain would imply a $380 billion valuation, assuming no major share dilution.

Staggering, yes. But likely to happen? Not very.

Counting money.

Image source: Getty Images.

The thing is, even if USA Rare Earth succeeds in its mine-to-magnet endeavors, earning the revenue needed to support a $380 billion valuation will be an enormous challenge. I won't say impossible, but there's unlikely to be enough demand to support a mining company of that size, especially with MP Materials (NYSE: MP) also working toward the same goal.

Even the world's largest mining companies today are nowhere near $380 billion.

BHP Market Cap Chart

Data by YCharts

Still, just because USA Rare Earth is unlikely to deliver a 100-fold gain doesn't mean it's a bad investment. Over time, this mining stock could reward investors handsomely, especially if its mine-to-magnet business takes off. I wouldn't buy USA Rare Earth expecting to become a millionaire but I might consider adding some shares to a diversified portfolio for potential long-term upside.

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 $361,596!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,303,935!*

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*Stock Advisor returns as of October 23, 2026.

Steven Porrello has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MP Materials. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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