Remember when the government’s biggest tech move was accidentally sending a fax to the wrong number? Well, plot twist: Uncle Sam just became Silicon Valley’s most successful venture capitalist, and nobody’s talking about it.
While everyone’s obsessing over Nvidia’s earnings and whether AI is in a bubble (spoiler: it’s complicated), Washington quietly launched what I’m calling the “Manhattan Project for Making Money.” They’re not just throwing subsidies around like confetti at a tech conference – they’re taking actual equity stakes in companies they think will dominate the future.
And here’s the kicker: their stock picks are absolutely crushing it.
The Government’s Portfolio is Embarrassing Wall Street
Let’s talk numbers, because they’re wild. When the feds decided to back certain companies this year, those stocks didn’t just go up – they went parabolic:
- Intel (INTC): Up 77% after getting government backing
- MP Materials (MP): Rocketed 276% when the Pentagon bought in
- Lithium Americas (LAC): Up 50%
- Trilogy Metals (TMQ): Soared 204%
Meanwhile, the S&P 500 is sitting pretty at a modest 13% gain. It’s like watching your uncle who still uses Internet Explorer somehow become a day-trading legend.
How to Spot the Next Government Darling
The pattern is actually pretty simple once you see it. The government has a three-part checklist for picking winners:
1. Right Industry: Is it critical for national security? (AI, semiconductors, rare earth minerals, cybersecurity – basically anything that sounds important in a Tom Clancy novel)
2. Right Company: Are they the clear leader who can actually solve the problem? (No participation trophies here)
3. Right Connections: Do they have U.S. operations and the kind of relationships that get you invited to D.C. dinner parties?
Take MP Materials – they checked every box. They run America’s only major rare earth mine (which China basically controls everywhere else), they’re the obvious domestic champion, and their CEO’s brother literally worked for Trump. When the Pentagon announced a $400 million investment, the stock tripled.
The New Rules of the Game
Here’s what’s really happening: the old Silicon Valley playbook is getting rewritten. Instead of following venture capital money, smart investors are following federal money. The government has essentially become the world’s most powerful VC fund, except instead of hoping for unicorns, they’re creating national champions.
This isn’t your typical government intervention either. We’re talking about direct equity stakes, strategic partnerships, and guaranteed contracts that can send stocks into orbit faster than you can say “national security.”
The best part? Most Wall Street analysts are still treating these moves like isolated incidents instead of recognizing the massive shift that’s happening. While they’re debating whether AI is overhyped, the government is quietly picking the companies that will define the next decade of tech.
So next time someone asks where the smart money is going, don’t point to Sand Hill Road. Point to Pennsylvania Avenue. Uncle Sam’s new investment strategy is making everyone else look like amateurs.