A select few stocks are poised to benefit as national security becomes a top concern for President Donald Trump’s administration, according to Morgan Stanley traders. After China tightened export controls on rare earths and related technologies, Trump took to his Truth Social platform on Friday to express his dissatisfaction, writing that China was “becoming very hostile.” Stocks sold off across the board after the president said that the United States would impose new tariffs of 100% on imports from China. As worldwide trade tensions escalate, the theme of deglobalization has also accelerated. On Monday, JPMorgan said that it would invest up to $10 billion in companies that it considers critical to U.S. national security and interests. “It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing — all of which are essential for our national security,” JPMorgan CEO Jamie Dimon said in a release. With this in mind, Morgan Stanley’s trading desk put together a basket of “national security” stocks that could benefit from renewed investments focused on securing crucial businesses in the United States. Stocks in the list were roughly evenly split across lithium, batteries, uranium/nuclear, rare earth mining and energy storage, Morgan Stanley wrote. Some names from the basket are shown below: The bank selected Tesla for its exposure to manufacturing and batteries. Shares of the electric vehicle maker have added more than 7% this year. On Monday, Melius Research initiated coverage of the stock at a buy rating and called it a “must own.” “The disruptive force of AI will wreck multi trillion dollar industries, starting with auto,” wrote analyst Rob Wertheimer. “Keeping pace isn’t easy for most companies. Tesla and the Musk ecosystem can, and in a combination of tech and design/manufacturing that no one today can replicate.” The analyst’s $520 target price implies an upside of nearly 20% from current levels. Another name in Morgan Stanley’s basket was rare-earth materials company MP Materials , which has surged more than an eye-watering 520% in 2025. Last Thursday, BMO Capital Markets reinstated its coverage at a market perform rating. Analyst Raj Ray’s $76 price target is more than 20% below where shares are currently trading. “Following a transformational partnership with the Department of Defense (DoD), we believe MP has emerged as the U.S.’ rare earth champion,” Ray wrote. “We believe the partnership paves a clear pathway to stable and predictable earnings; however, given the future earnings visibility, we believe the market is accurately valuing the shares, hence our Market Perform rating.” Morgan Stanley also singled out mining stock Freeport-McMoRan , up around 13% this year. Last Wednesday, Citi upgraded the stock to a buy rating. “FCX historically commanded a premium sector multiple due to some combination of size, liquidity, S & P 500 inclusion & solid operating performance — and it remains to be seen if it can recapture this; but we see enough upside just re-rating to peers,” the bank wrote. Citi’s $48 price target corresponds to an upside of more than 11%. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
