13 Best Magnesium Stocks to Buy Right Now

2. ATI Inc. (NYSE:ATI)

Number of Hedge Fund Holders: 45

ATI Inc. (NYSE:ATI), an international producer of specialty materials, supplies high-performance alloys for industrial applications, aerospace, and defense. Magnesium-based alloys are a key component of its portfolio, which are commonly used in airframes, jet engines, and military equipment due to their lightweight and high-strength properties. The company takes advantage of increasing defense budgets, as magnesium alloys improve mobility and fuel efficiency in military vehicles and aircraft.

ATI Inc. (NYSE:ATI) reported $1.2 billion in revenue, signifying a 12% sequential and 10% year-over-year growth, indicating strong financial performance for Q4 ended December 29, 2024. Adjusted EBITDA surprised its prior guidance, reaching $210 million. The company recorded full-year revenue as the highest since 2012, surging to $4.4 billion, signifying a 5% increase from 2023. Airframe revenue grew by 4.5%, jet engine revenue surged to 9%, while aerospace and defense also remained key growth drivers.

However, a key consumer of ATI Inc. (NYSE:ATI)’s magnesium-based alloys, the defense segment witnessed a 38% sequential rise in Q4 2024 and is anticipated to expand another 7% in 2025. This growth is backed by a possible $200 billion increase in U.S. defense spending, where 50% is assigned to programs ATI engages in. Moreover, it strengthened its long-term revenue pipeline by achieving $4 billion in new customer commitments in 2024.

Looking forward, the company anticipates continued strength in defense and aerospace demands, with wide-body aircraft manufacturing rising in 2026. ATI Inc. (NYSE:ATI) remains well-positioned for future growth and is a strong player among the best magnesium stocks to invest in due to these factors.