Why MP Materials Corp. (MP) Surged On Friday

We recently published a list of Investors Rushed Into These 10 Stocks Today. In this article, we are going to take a look at where MP Materials Corp. (NYSE:MP) stands against other Friday’s best-performing.

MP Materials extended its winning streak for a third straight day on Friday, jumping 10.22 percent to close at $21.79 apiece as investor sentiment appears to have been buoyed by the possibility of China relaxing curbs on rare earth minerals exports.

The new policy shift followed mounting calls that curbs on rare earth minerals could disrupt production of several industries, including vehicle manufacturing and semiconductors, which are both heavily reliant on rare earth mines.

Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals.

According to a report by China Daily, the Chinese government is looking into the possibility of easing controls for such supply chains.

Last month, MP Materials Corp. (NYSE:MP), the US’s only rare earth minerals miner, stopped shipping mines to China for processing after the Chinese government slapped a 125-percent tariff on US imports.

The move essentially halted a major source of revenue for MP Materials Corp. (NYSE:MP), which relied on its Chinese partners to refine rare earth elements for years.

Overall, MP ranks 2nd on our list of Friday’s best-performing. While we acknowledge the potential of MP, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MP and that has 10,000x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.