The White House Premium: How Washington Is Creating AI Stock Rockets

Something exceptionally rare is happening in D.C.; something that has only happened a few times before in our nation’s history… The U.S. government is buying equity stakes – in America’s AI supply chain.

Not grants, contracts, or tax credits but stock.

Intel (INTC) was the deal that stole headlines. It was an unprecedented ~$9 billion government equity investment that handed Washington ~10% of the company’s shares.

But just weeks before, the White House wrote a $400 million convertible preferred check into rare-earths miner and magnet maker MP Materials (MP), complete with warrants, a rare-earth price floor, and a government offtake agreement. That stock has soared about 3X since June alone.

If you’re keeping score at home, that’s America’s leading chipmaker and its leading rare earths supplier with Uncle Sam on their cap tables (and winning on Wall Street).

This is not business as usual. It’s industrial policy by way of Wall Street. And it could create massive upside opportunities for investors able to identify who’s next…

Washington’s Bold AI Strategy: Why Intel Got the First Big Check

The U.S. government has subsidized industries before: railroads in the 1800s, defense primes during WWII, semiconductors in the 1980s, and, of course, the internet build-out in the 1990s. 

But the typical playbook was contracts, loans, or tax breaks. Rarely does Washington own shares – especially outside of dire extenuating circumstances, such as the 2008 financial crisis, when the U.S. government purchased ownership stakes in several banks and automotive companies.

This 2025 Intel investment has changed that narrative. By taking an outright equity stake, the government is doing three things at once:

1. Securing a strategic chokepoint: Advanced semiconductor foundries are critical infrastructure for AI, defense, and the entire digital economy.
2. Anointing a national champion: A White House investment effectively designates Intel as a preferred partner in America’s industrial strategy.
3. Indicating broader intervention: Other sectors central to AI – like energy, rare earths, satellites, robotics, and cybersecurity – should expect similar government backing.

And the signal from the capital was heard loud and clear in New York. 

Intel stock surged after its White House deal. And as we mentioned, MP stock has tripled since June, with most of that rally driven by the U.S.’ stake. 

Wall Street understands: if the government is putting in a price floor and buying product for a decade, the downside is effectively capped – and the upside is essentially infinite.

That’s exactly why Wall Street is rushing to buy these “DC AI” stocks.