Cramer Advises Selling NioCorp as Speculative, Favors MP Materials
During a 20 October 2025 broadcast of Squawk on the Street, Jim Cramer contrasted NioCorp Developments Ltd with MP Materials, recommending the latter for its government backing while warning against NioCorp’s valuation dynamics.
On 20 October 2025, financial commentator Jim Cramer appeared on the Squawk on the Street episode to outline a distinct preference for MP Materials over NioCorp Developments Ltd (NASDAQ: NB). During the segment, Cramer advised investors to sell NioCorp, describing the stock as too speculative and comparing its current valuation trajectory to the merger activity seen during the dot-com era.
Cramer highlighted that NioCorp’s shares had risen 432 per cent year-to-date at the time of the broadcast. He questioned whether investors believed they were entering the position early given such a significant advance, noting that the stock’s behaviour mirrored the late 1990s when companies with inflated valuations began merging. He pointed to a 532 per cent rise in antimony prices and a bid for an Australian rare earth company at a ratio of six shares for one as indicators of unsustainable pricing dynamics.
In contrast, Cramer recommended MP Materials, characterising it as a real company with established government backing. He identified himself as a traditionalist investor, stating he would go with MP Materials rather than engaging with the speculative nature of NioCorp. While acknowledging that NioCorp explores and develops mineral deposits, primarily focusing on its Elk Creek project to mine niobium, scandium, and titanium, Cramer suggested that without direct government intervention, such stocks were difficult to justify holding.
The commentary occurred amidst a broader market environment influenced by geopolitical tensions, including the Trump-Xi summit and ongoing Iran-US peace talks. Cramer used the platform to discuss macroeconomic factors, suggesting that peace negotiations with Iran could trigger an oil glut. He argued that this scenario would cool inflation and subsequently pull interest rates down.
The broadcast also touched on conflicting analyst sentiment, with Cramer noting that William Blair held a positive view of NioCorp despite his own bearish stance. The segment underscored the divergence between traditional investment metrics and the speculative fervour surrounding certain rare earth and mineral development stocks during the period.
