Unusual Machines (UMAC) stock surged 58% intraday on Pentagon talks about direct federal equity stakes in drone makers, while Red Cat Holdings (RCAT) stock rose 34%, AeroVironment (AVAV) stock climbed 17%, and Kratos Defense & Security Solutions (KTOS) stock gained 14%.
Drone stocks caught a powerful bid Thursday after reports said the Trump administration is exploring possible funding deals with a group of companies to expand domestic drone production and bring costs lower. Unusual Machines (UMAC), a drone-parts maker backed by Donald Trump Jr., closed 57% higher at an all-time high.
Micron's rally this week brought the memory chip maker into the $1 trillion market cap club for the first time.
Investors have piled into AI hardware stocks this year as big tech companies continue to spend billions to build out data centers.
In the past decade, perhaps no stock market trend has been as obvious as the changing sector layout. A notable 33% of the S&P 500 index is accounted for by the information technology sector these days. According to research by The Motley Fool, some of the world's most valuable businesses are in the technology sector.
Shares of drone-parts maker Unusual Machines (UMAC) climbed by 57.2% intraday on May 28 after a report stated that the Trump administration is planning to fund the company.
The vessel can be customized with different sensors, payloads, and communication systems based on mission needs, the company said.
RCAT stock breached its 100-DMA for the first time in over a month.
Drone stocks have seen strong gains after The Wall Street Journal reported that the U.S. government is considering financial support for domestic defense technology firms.
Dell Technologies (NYSE:DELL) just delivered one of the most explosive quarters in its history, and the stock has responded in kind.
It's hard to score a deal if you're sticking with artificial intelligence (AI) stocks. Nvidia (NASDAQ: NVDA), for example, has a massive $5.2 trillion market cap, yet trades at an astounding 33 times earnings. A decade ago, it was difficult to even imagine a company growing this big, let alone trading at a premium valuation.
The United States market has shown robust growth, with a 1.8% increase over the last week and a remarkable 28% rise over the past year, while earnings are projected to grow by 17% annually.