During Donald Trump’s first term, the S&P 500 gained more than 80% while the Nasdaq surged over 150%. Now, during his second term, Washington is buying shares in publicly traded companies like INTC, MP, and USAR. Below, we explore how the U.S. government is becoming an investor, and how that could have major implications for both taxpayers and stock market participants.
Donald Trump has long been associated with the stock market.
During his first term in office, the S&P 500 delivered a total return of approximately 81%, while the Nasdaq Composite gained more than 150%, making it one of the strongest four-year periods for U.S. equities in recent history.
Since returning to office in 2025, Trump has continued to emphasize American manufacturing, domestic production, and economic competitiveness.
However, unlike his first term, one of the most notable developments has not been a tax policy or regulatory change. Instead, it has been Washington’s growing willingness to take direct ownership stakes in strategically important companies.
Over the past year, the federal government has committed billions of dollars to industries viewed as critical to America’s economic and national security interests, as well as becoming a direct shareholder of corporations, such as Intel, USA Rare Earth, and MP Materials.
In this article, we’ll examine how U.S. stocks have performed under Trump and a few other US Presidents, why Washington is buying stakes in Intel (INTC), MP Materials (MP), USA Rare Earth (USAR), and others, and what this growing trend could mean for investors moving forward.
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Key Takeaways – Donald Trump Vs. The Stock Market
- The S&P 500 gained more than 80% during Trump’s first term, while the Nasdaq surged over 150%.
- Obama delivered the strongest S&P 500 performance of the three administrations, with gains exceeding 180%.
- Trump’s second term has produced positive stock market returns so far, though it remains too early for meaningful long-term comparisons.
- The U.S. government acquired a 9.9% stake in Intel (INTC) for approximately $8.9 billion in 2025.
- Washington became a major shareholder in MP Materials (MP) through a $400 million investment tied to America’s rare earth supply chain.
- The government also secured a roughly 10% stake in USA Rare Earth (USAR) through a $1.6 billion funding package.
- Dell secured a Pentagon technology contract worth up to $9.7 billion, while Palantir has received billions of dollars in defense and AI-related government work.
- Trump’s personal stock disclosures revealed positions in companies including Dell and Palantir, raising renewed debate over whether elected officials should be allowed to own and trade individual stocks.
How Have US Stocks Performed Under Trump?
While investors often debate politics, the stock market ultimately responds to earnings growth, economic conditions, interest rates, and investor sentiment.
Still, presidential administrations can have a significant influence on markets through tax policy, regulation, trade agreements, government spending, and industrial policy.
During Donald Trump’s first term, U.S. stocks experienced one of the strongest four-year runs in modern history.
His second term has been more volatile, with markets navigating tariffs, inflation concerns, geopolitical tensions, and a rapidly evolving artificial intelligence boom.
Despite these challenges, major U.S. indices have continued to post gains and remain near record highs.
The table below compares the performance of the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average during Trump’s first term and his second term to date.
| Index | Trump First Term (2017-2021) |
Trump Second Term (2025-Present)* |
|---|---|---|
| S&P 500 | +81% | +18% |
| Nasdaq Composite | +157% | +24% |
| Dow Jones Industrial Average | +57% | +15% |
How Does Trump’s Stock Market Compare To Biden And Obama?
Although presidents often receive credit or blame for market performance, stock returns are influenced by a wide range of factors that extend far beyond the White House. Interest rates, corporate earnings, economic growth, inflation, global events, and investor sentiment all play important roles.
Nevertheless, comparing stock market performance under different administrations can provide useful historical context. The table below compares the total return of the S&P 500 during the Obama, Trump, and Biden administrations.
| President | Years | S&P 500 Total Return |
|---|---|---|
| Barack Obama | 2009-2017 | +182% |
| Donald Trump (First Term) | 2017-2021 | +81% |
| Joe Biden | 2021-2025 | +57% |
| Donald Trump (Second Term)* | 2025-Present | +18% |
*Performance through mid-2026.
From a stock market perspective, all three administrations ultimately delivered positive returns for long-term investors. However, Trump’s second term may be remembered less for market performance and more for a development that would have seemed highly unusual just a few years ago: the U.S. government becoming a direct shareholder in publicly traded companies.
The Most Unusual Development in Modern Markets – Washington Investing In Stocks
Historically, the U.S. government has influenced the economy through regulation, subsidies, tax incentives, and government contracts.
Outside of rare situations such as the 2008 financial crisis, however, Washington has rarely taken significant ownership stakes in publicly traded companies.
However, that appears to be changing.
Over the past two years, the federal government has committed billions of dollars toward domestic semiconductor manufacturing, rare earth production, and other strategically important industries.
While much of that support has come through grants and loans, several deals have also involved direct equity investments.
Supporters argue these investments strengthen supply chains and reduce reliance on foreign competitors. Critics warn that government ownership could distort markets and blur the line between public policy and private enterprise.
Regardless of the debate, Washington is playing a larger role in financial markets than it has in decades.
Next, we’ll examine some of the most notable investments, including Intel (INTC), MP Materials (MP), USA Rare Earth (USAR), and other companies that have attracted direct government backing.
Intel (INTC)
Intel became one of the most controversial investments of the Trump administration when the U.S. government acquired a 9.9% ownership stake in the semiconductor giant in August 2025.
The deal was structured as an $8.9 billion investment, with Washington purchasing 433.3 million newly issued Intel shares at $20.47 per share.
At the time of the announcement, Intel was still in the midst of a multi-year turnaround effort. The company had struggled to keep pace with rivals in advanced semiconductor manufacturing, making domestic chip production a major national security priority for the administration.
As part of the agreement, the U.S. government also received warrants that could allow it to acquire an additional 5% stake at $20 per share under certain conditions.
As of June 2026, the investment has proven highly profitable.
Washington’s average purchase price was $20.47 per share, while Intel shares have since climbed above $80 per share, reaching all-time highs during 2026 as investors embraced the company’s turnaround, AI opportunities, and expanding foundry business.
Based on Intel’s recent share price, the government’s original $8.9 billion investment has grown to an estimated value of roughly $36 billion, representing approximately $27 billion in unrealized gains.
Some estimates placed the value even higher during Intel’s peak rally in May 2026, when the stake briefly exceeded $56 billion, implying nearly $48 billion in paper profits.
To date, those gains remain unrealized, as the government has not disclosed any sales of its Intel shares.
Whether investors view the deal as smart industrial policy or unprecedented government intervention, Intel remains the clearest example of Washington moving beyond grants and subsidies and becoming a direct shareholder in a publicly traded company.
| Intel Investment Stats | Details |
|---|---|
| Stake Acquired | 9.9% |
| Shares Purchased | 433.3 million |
| Purchase Price | $20.47/share |
| Initial Investment | $8.9 billion |
| Recent Share Price | ~$80+ |
| Stake Value Today | ~$36 billion |
| Unrealized Gain | ~$27 billion |
| Peak Unrealized Gain (2026) | ~$48 billion |
MP Materials (MP)
If Intel represents Washington’s effort to secure domestic semiconductor manufacturing, MP Materials may be the government’s most important investment in the critical minerals sector.
The company owns and operates the Mountain Pass mine in California, the only active rare earth mine in the United States and a key part of America’s effort to reduce dependence on China for strategically important materials.
In July 2025, the U.S. Department of Defense agreed to invest $400 million in MP Materials through a combination of convertible preferred shares and warrants.
The deal gave the government an effective ownership position of approximately 15%, making Washington the company’s largest shareholder.
The preferred shares and warrants carry an exercise price of $30.03 per share, providing a useful benchmark for evaluating the investment’s performance.
The announcement immediately transformed investor sentiment.
MP shares surged roughly 50% to 60% following the deal, as investors recognized the significance of direct government backing and the growing importance of rare earth supply chains.
The investment was part of a broader partnership that also included financing commitments for expanded U.S. magnet manufacturing capacity.
Since the investment was announced, MP Materials has continued to benefit from rising demand for rare earth materials used in electric vehicles, defense systems, robotics, and advanced electronics.
As of May 2026, shares recently traded around $60-70 per share, roughly double the government’s effective entry price of $30.03 per share.
Based on the original $400 million investment, the government’s stake is now worth an estimated $800 million or more, implying approximately $400 million in unrealized gains.
Unlike Intel, where the investment was largely focused on semiconductor manufacturing, MP Materials represents a broader strategic objective: rebuilding an American rare earth supply chain.
Rare earth elements are critical inputs for fighter jets, missiles, electric vehicles, wind turbines, robotics, and AI infrastructure, making MP one of the most strategically important companies backed by Washington today.
| MP Materials Investment Stats | Details |
|---|---|
| Government Investment | $400 million |
| Ownership Stake | ~15% |
| Effective Purchase Price | $30.03/share |
| Announcement Date | July 2025 |
| Recent Share Price | ~$60/share |
| Estimated Stake Value Today | ~$800 million |
| Estimated Unrealized Gain | ~$400 million |
| Strategic Focus | Rare Earths & Magnet Manufacturing |
USA Rare Earth (USAR)
While Intel and MP Materials are already established players in their respective industries, USA Rare Earth (USAR) represents a direct investment in America’s future critical mineral supply chain.
The company is developing the Round Top rare earth project in Texas and building a vertically integrated “mine-to-magnet” business designed to reduce U.S. dependence on foreign suppliers.
In January 2026, the Trump administration announced a $1.6 billion debt-and-equity funding package for USA Rare Earth.
As part of the agreement, the U.S. government would receive approximately a 10% ownership stake, making USAR one of several strategically important resource companies to receive direct federal backing.
The package included $277 million in direct funding and up to $1.3 billion in loan financing through the CHIPS Program.
The government’s equity position was structured through approximately 16.1 million shares and 17.6 million warrants, with an effective exercise price of roughly $17.17 per share.
At the time of the announcement, investors reacted enthusiastically, sending USAR shares sharply higher as the market recognized both the strategic importance of the project and the significance of direct government support.
Unlike Intel, where the government invested in an established semiconductor giant, or MP Materials, where the goal was to expand existing rare earth production, USA Rare Earth is primarily a bet on future growth.
The company’s Round Top project is expected to become one of the largest domestic sources of rare earth elements, gallium, and other critical minerals, with commercial production targeted for 2028 and long-term production capacity expected to reach approximately 40,000 metric tons of feedstock per day by 2030.
Because the investment was announced only recently and much of the government’s stake is tied to shares and warrants that have not been exercised or sold, the ultimate return on investment remains uncertain.
However, the deal highlights a broader trend that has emerged under the Trump administration: Washington is no longer simply subsidizing strategic industries—it’s increasingly taking an ownership stake in them.
| USA Rare Earth Investment Stats | Details |
|---|---|
| Government Ownership Stake | ~10% |
| Total Funding Package | $1.6 billion |
| Direct Federal Funding | $277 million |
| Federal Loan Financing | $1.3 billion |
| Effective Share/Warrant Price | ~$17.17/share |
| Government Shares | 16.1 million |
| Government Warrants | 17.6 million |
| Planned Commercial Production | 2028 |
| Long-Term Feedstock Target | 40,000 Metric Tons/Day |
| Strategic Focus | Rare Earth Mining & Magnet Manufacturing |
Government Ownership vs. Government Contracts
Not every company linked to the Trump administration has received a direct government investment.
While Washington has taken ownership stakes in companies such as Intel, MP Materials, and USA Rare Earth, other firms have benefited through large government contracts, strategic partnerships, and increased federal spending.
The distinction is important.
Government ownership means taxpayers become shareholders. Government contracts mean taxpayers become customers. Both can create significant value for investors, but they represent very different forms of government support.
| Company | Government Stake? | Government Contracts / Support? |
|---|---|---|
| Intel (INTC) | Yes | Yes |
| MP Materials (MP) | Yes | Yes |
| USA Rare Earth (USAR) | Yes | Yes |
| Dell (DELL) | No | Yes |
| Palantir (PLTR) | No | Yes |
Dell (DELL)
While the U.S. government does not own a stake in Dell, the company recently received one of the largest technology contracts awarded during Trump’s second term.
In May 2026, Dell Federal Systems secured a five-year, $9.7 billion Pentagon contract to manage Microsoft software licensing, cloud subscriptions, and related services across the Department of Defense, intelligence community, and Coast Guard.
The agreement is expected to save taxpayers approximately $422 million per year through centralized software procurement.
The contract came shortly after Dell shares reached new all-time highs, fueled by surging AI infrastructure demand and strong earnings growth.
Although Washington is not a shareholder, Dell’s growing role as a key government technology partner demonstrates how federal spending can significantly influence corporate performance.
Palantir (PLTR)
Palantir has become one of the largest beneficiaries of increased federal spending on artificial intelligence, defense technology, and data analytics.
Unlike Intel, MP Materials, and USA Rare Earth, the government does not hold an ownership stake in the company.
Instead, Palantir generates a substantial portion of its revenue through government contracts and strategic defense partnerships.
In 2025, the Pentagon expanded deployment of Palantir’s Maven Smart System through a contract worth up to $795 million, while the U.S. Army later awarded the company a software procurement agreement worth up to $10 billion over the next decade.
Additional contracts across the Department of Defense and other federal agencies have helped cement Palantir’s position as one of Washington’s most important AI and defense software providers.
For investors, Dell and Palantir highlight an important point: a company doesn’t need direct government ownership to benefit from Washington’s priorities.
In many cases, large contracts and long-term partnerships can be just as valuable.
Is Trump Creating a Sovereign Wealth Fund by Another Name?
Unlike countries such as Norway and Saudi Arabia, the United States has never operated a traditional sovereign wealth fund.
Historically, Washington has mainly influenced the economy through regulation, tax policy, subsidies, and government contracts rather than direct ownership of public companies.
However, the governement’s recent investments in Intel (INTC), MP Materials (MP), and USA Rare Earth (USAR) have sparked a new debate.
Supporters argue these investments help secure critical industries while allowing taxpayers to participate in potential gains.
Meanwhile, critics counter that government ownership risks distorting markets and picking winners and losers.
Whether these investments represent a new form of industrial policy, the beginning of a sovereign wealth fund, or simply a response to strategic challenges remains unclear.
What is clear is that Washington is playing a larger role in the stock market than it has in decades.
Trump’s Personal Stock Market Performance
One of the most surprising developments of Trump’s second term wasn’t just the government’s growing role as an investor—it was the disclosure of Trump’s own personal stock portfolio.
According to financial disclosures released in 2026, Trump reported more than 3,700 stock transactions, revealing positions across technology, defense, artificial intelligence, healthcare, and industrial companies.
Several of those investments would go on to become major winners as markets rallied and government spending accelerated.
Among the most notable holdings were Dell Technologies (DELL) and Palantir Technologies (PLTR).
AS mentioned above, Dell later secured a $9.7 billion Pentagon technology contract, while Palantir continued to receive billions of dollars in federal contracts tied to artificial intelligence, data analytics, and defense modernization.
The timing of these events has sparked debate among investors, politicians, and ethics experts.
Critics argue that elected officials should not actively trade individual stocks while influencing policies that may affect those companies.
Supporters counter that financial disclosures create transparency and that no evidence has emerged showing contracts were awarded because of Trump’s investments.
Regardless of where investors fall on the issue, the situation highlights a broader question:
Should elected officials be allowed to own and trade individual stocks while overseeing policies that can influence corporate profits and share prices?
That debate extends far beyond Trump and has become an increasingly important issue in Washington over the past decade.
Conclusion – Donald Trump Vs. US Stocks
Donald Trump’s second term has already produced strong stock market returns, but the bigger story may be Washington’s evolving role in financial markets.
Through direct investments in companies such as Intel, MP Materials, and USA Rare Earth, the federal government has moved beyond traditional subsidies and contracts and become a shareholder in strategically important businesses.
At the same time, companies such as Dell and Palantir have benefited from billions of dollars in government contracts, while Trump’s own stock disclosures have raised fresh questions about transparency, ethics, and the relationship between politics and investing.
Whether these developments represent smart industrial policy, the early stages of a sovereign wealth fund, or a fundamental shift in how America supports critical industries remains open to debate.
What is clear is that the relationship between Washington and Wall Street is changing, and investors who understand that shift may be better positioned to identify both the risks and opportunities that lie ahead.
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Frequently Asked Questions
Has the U.S. government actually bought shares in public companies?
Yes. Under the Trump administration, the federal government acquired ownership stakes in several strategically important companies, including Intel (INTC), MP Materials (MP), and USA Rare Earth (USAR). These investments were intended to strengthen domestic semiconductor manufacturing, rare earth production, and critical supply chains.
Why did the government invest in Intel?
The government acquired a 9.9% stake in Intel as part of a broader effort to rebuild America’s semiconductor manufacturing capabilities. Advanced chips are considered critical to both economic competitiveness and national security, making Intel one of the administration’s most important strategic investments.
Does the U.S. government own MP Materials?
Yes. Through a public-private partnership announced in 2025, the Department of Defense became a major shareholder in MP Materials (MP), which operates the Mountain Pass rare earth mine in California. The investment was designed to reduce U.S. reliance on China for critical minerals and magnet production.
Does the U.S. government own Dell (DELL)?
No. While Dell has received major government contracts, including a multi-billion-dollar Pentagon technology agreement, the federal government does not currently hold an ownership stake in the company.
Does the U.S. government own Palantir (PLTR)?
No. The government does not own shares of Palantir. However, Palantir generates a significant portion of its revenue from government contracts and has become one of the largest beneficiaries of increased federal spending on defense, artificial intelligence, and data analytics.
What is a sovereign wealth fund?
A sovereign wealth fund is a government-owned investment fund that invests in stocks, bonds, real estate, and other assets. Countries such as Norway, Saudi Arabia, and Singapore operate large sovereign wealth funds. The United States has historically not maintained a traditional sovereign wealth fund at the federal level.
Is the U.S. creating a sovereign wealth fund?
Not officially. However, some analysts argue that the government’s growing ownership stakes in strategic companies resemble certain characteristics of a sovereign wealth fund. Whether these investments evolve into something larger remains uncertain.
How have U.S. stocks performed under Trump?
During Trump’s first term, the S&P 500 gained more than 80% while the Nasdaq Composite surged over 150%. Trump’s second term has also produced positive returns so far, although long-term comparisons remain premature.
Why are rare earth companies receiving government support?
Rare earth elements are essential for technologies such as electric vehicles, fighter jets, missiles, robotics, wind turbines, and advanced electronics. Because China dominates much of the global rare earth supply chain, the U.S. government has prioritized domestic production through investments in companies such as MP Materials and USA Rare Earth.
Should politicians be allowed to own individual stocks?
This remains one of the most debated ethics questions in Washington. Supporters argue that financial disclosures provide transparency, while critics believe elected officials should use blind trusts or diversified funds to avoid potential conflicts of interest. The debate has intensified following disclosures showing politicians from both major parties actively trading individual stocks while influencing public policy.
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