market analysis

AMD and OpenAI's partnership clarifies AI real demand, server giant Dell revises long-term growth outlook upward and buys into the entire AI supply chain. Funds also spilled over into batteries and energy storage (Flux and EOSE) and BTC miners (BITF); POET fundraising and FIG re-evaluates SaaS on the back of Altman's ChatGPT introduction effect.

TMQ's 10% stake in the U.S. government and the approval of Ambler Road sent the resources and energy sector soaring; TMC and SES rose on the lithium-nickel chain; in the AI sector, APP fell temporarily due to short sellers but reversed to the upside; RGTI raised its target; and RKLB continued to rise on the announcement of a contract.

AI-related stocks rose on the back of large contracts with AMD and OpenAI; IREN, BITF, and other miners also strengthened on HPC linkage; CRML and IONR saw sharp growth in resource stocks on government investment and policy support; and the market was boosted by both real demand and policy support in defense AI (AISP), energy storage (EOSE), and nuclear power (NNE). Defense AI (AISP), energy storage (EOSE), and even nuclear power (NNE) spilled over, pushing the market higher on both real demand and policy.

Lithium (LAC), Quantum (RGTI/QUBT), and Hydrogen (PLUG) are rising on policy themes; DOE investment confirmations, upgrades, and real orders are stimulating their respective sectors; USAR, AREC, and other resource recyclers are also rising. While the theme market is continuing, Palantir is also down due to news material.

Righetti wins $5.7M order for Novera quantum systems, spilling over into QBTS and ARQQ; ASTS plans to start D2C with AT&T and Verizon, leading to rapid growth in satellite communications; ONDS receives first order for expendable drones, revealing defense demand; USAR and PL also continue to receive cash inflows as themes continue. Individual theme-driven market continues even under the government shutdown.

LAC jumped on reports of a DOE investment; funds flowed into the resource and battery sectors, including QS, PLUG, and FLNC; AI-related companies also rose on supply chain reassessments of MU, SMCI, and INOD; AZN entered Enhertu review and ASTS's target was raised; and theme speculation was broad-based.

In AI cloud, CRWV announced $142B contract with Meta, which spilled over into infrastructure and power supply-related sectors, including power supplies (BE) and semiconductors (SMTC). In the pharmaceutical sector, the TrumpRx agreement reduced concerns over drug prices, and the pharma sector was repurchased, while healthcare stocks including PFE, MRK, and DHR rebounded.

WDC's valuation rises on a bullish report; APP is higher on an analyst raise; Flux has earnings momentum; CLSK is also strong in the miners as it secures a BTC-backed credit facility; AREC revalues resources on a POSCO contract; HOOD is at its highest on a "banking" expansion; and CLSK is higher on a BTC-backed line of credit.

PPTA leads resource stocks with its antimony downstream plan; PLG continues to grow on higher platinum prices; LTBR is expected to promote development with fundraising disclosure; CLPT is expected to reach new highs with a raised target; MOB is firm on lingering orders; APP remains high on AI ads x bullish valuation.

Lithium (LAC, SLI, NB), rare earths (MP), and enriched uranium (LEU) were strong and the resources sector was higher across the board, triggered by reports of LAC's government investment consideration. In semiconductors, INTC and MRVL were strong on external support and share buybacks. The market is in a good position to buy at the push.