Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJustin Pope, The Motley FoolWed, June 24, 2026 at 6:05 PM GMT+2 5 min readUSA Rare Earth (NASDAQ: USAR) and Archer Aviation (NYSE: ACHR) are two of the hottest stocks in the industrial sector, and for good reasons.In one corner is USA Rare Earth, which stands to benefit from the U.S. government's push for domestic rare-earth magnets, a crucial component in weapons and various other electronics. Meanwhile, Archer Aviation wants to dominate the skies of U.S. cities with its electric vertical take-off and landing (eVTOL) aircraft.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »As promising as both companies seem, neither offers much tangible revenue yet. The better industrial stock between these two is likely the one that turns more of its hype into reality. Here's why that's most likely going to be Archer Aviation.Image source: Getty Images.The pitch for USA Rare EarthThe United States currently imports most of its rare-earth magnets from China, arguably its biggest rival. Given that these magnets are a crucial component of weapons and other technologies, it makes sense that the government wants to establish a new source for them. The Trump administration is backing USA Rare Earth, including taking a 10% stake in the company, with additional funding and loans bringing the total capital commitment to approximately $3.5 billion.USA Rare Earth is using that money to develop a fully integrated supply chain, from mining and development to magnet production. The business should ramp up over the next several years.The company should complete an expansion at its magnet factory in Oklahoma next year, with a new facility coming online in South Carolina in 2028. Commercial mining production at its Texas deposit could begin in late 2028. Management believes rare-earth magnets are a $19 billion market opportunity.The pitch for Archer AviationeVTOL aircraft can efficiently taxi small groups of passengers over short distances in major cities. Archer Aviation is among several eVTOL companies developing aircraft for U.S. skies, but it was the first to successfully move past Phase 3 of 4 of the FAA's regulatory approval process. Archer Aviation could provide early air taxi services across eight states as part of the White House's pilot program. It also has a contract with the U.S. Air Force for up to six aircraft.If Archer Aviation ultimately receives final FAA approval, it could begin commercial operations and transport U.S. customers as soon as this year. Executing these pilot programs could cement Archer Aviation's position as an industry leader and unlock greater opportunities as the eVTOL industry takes off over the coming years. According to Grand View Research's estimates, eVTOLs could become a $28.6 billion industry by the end of the decade.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info