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The U.S. government is initiating a large-scale investment effort dubbed a “modern Manhattan Project for AI,” targeting critical technological sectors including artificial intelligence, microchips, and clean energy. This initiative marks a shift in how investors should approach the tech market, with Washington effectively acting as a venture capital fund.
Recent examples of government-backed companies include Intel, which saw a 77% increase in shares this year, and MP Materials, which rose 276%. Other companies like Lithium Americas and Trilogy Metals also experienced significant gains, far surpassing the S&P 500’s 13% increase. The government holds a 15% stake in MP Materials and a 9.9% stake in Intel, emphasizing its direct involvement in shaping market winners.
Investors are advised to focus on sectors deemed essential by Washington, as companies that align with government interests are projected to receive major backing. As the government continues to allocate capital towards securing technological dominance, those who act quickly may experience explosive growth in their investments.
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