TMC The Metals Company vs. MP Materials: 1 of These Industrial Stocks Is a Far Better Bet Right Now
Key takeaways
- MP TMC Rare-earth metals are in short supply, and most of that supply is controlled by China.
- China has repeatedly shown its willingness to use access to rare-earth metals as a geopolitical bargaining chip.
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
MP TMC Rare-earth metals are in short supply, and most of that supply is controlled by China. Because of the vital role these metals play in the technology sector, companies like MP Materials (NYSE: MP) and TMC The Metals Company (NASDAQ: TMC) are seeking to capitalize on the unusual supply and-demand dynamics and build rare-earth metals businesses. For most investors, MP Materials will be the safer bet. Here's why.
China has repeatedly shown its willingness to use access to rare-earth metals as a geopolitical bargaining chip. Supply concerns have led companies that you might not expect to warn of production delays, for example, automakers. However, rare-earth metals play a vital role in everything from your cellphone to missile defense systems. Countries don't want to be beholden to China for their self-defense needs.
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 »