Rare earth mining stocks fall amid shifting AI spending expectations

Rare earth mining stocks experienced a decline following shifts in investor expectations regarding artificial intelligence spending. MP Materials saw its shares drop 3% to $57, while USA Rare Earth fell 4% to $19.

The market adjustment follows reports that Anthropic’s annualized revenue reached $65 billion in July, which was lower than the $80 billion circulating in Silicon Valley. Additionally, rising 30-year Treasury yields have placed pressure on large-scale projects, such as the construction of mining plants and magnet production.

USA Rare Earth currently holds $1.53 billion in cash and is awaiting the closing of its $2.8 billion acquisition of Serra Verde, expected by the end of August.