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Why Qualcomm (QCOM) Stock Is Trading Up Today

What Happened?

Shares of wireless chipmaker Qualcomm (NASDAQ:QCOM) jumped 4.8% in the afternoon session after macro rate relief from the Iran peace deal, a Wells Fargo price target increase, and positive positioning ahead of a June 24 Investor Day drove renewed market interest.

The macro backdrop was the same force lifting the entire chip sector. Oil fell another 4% as Trump's Iran deal announcement from the previous day gained credibility, pulling Treasury yields lower and expanding the multiples that future-earnings chips trade on.

Qualcomm had fallen 26% from its 2026 peak through June 10, hit by Nvidia's RTX Spark competing in the Windows on Arm PC market and by regulatory fears over its ByteDance AI chip deal, and seemed to be reclaiming some of that ground alongside AMD and broader semiconductors.

Also, Wells Fargo raised its price target to $230 from $160, citing growing confidence in the data centre opportunity ahead of June 24. The driver is Qualcomm's AI100 Ultra, now available through AWS, which Wells Fargo says carries competitive revenue per GPU hour versus other cloud AI products. JPMorgan is separately on positive catalyst watch, expecting the Investor Day to outline data centre revenue targets exceeding $3 billion in fiscal 2027 and $35 billion by fiscal 2031.

CEO Cristiano Amon confirmed at the Bernstein conference on May 27 that custom ASIC shipments, originally targeted for fiscal 2027, have been pulled into calendar year 2026. Asked what "material" data centre revenue means at Qualcomm's scale, Amon was direct: "Material has to be in the multiple billions of dollars.".

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What Is The Market Telling Us

Qualcomm's shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 22 hours ago when the stock gained 5.6% on the news that the Nasdaq rebounded, up 1.8%, as Trump's Iran peace deal announcement released the rate pressure that weighed on the sector all week.

Semiconductor stocks trade at elevated multiples on future earnings, making them disproportionately sensitive to interest rates. Oil falling more than 3% and the 10-year Treasury yield dropping to 4.47% released the rate hike pressure that drove the sector's worst week since 2020. The structural AI demand story never broke: Intel's BofA double upgrade to $135 earlier in the day confirmed hyperscalers are placing real production orders at domestic foundries, and AI infrastructure capex commitments remained intact.

Story Continues

Qualcomm is up 24% since the beginning of the year, but at $214.51 per share, it is still trading 14.5% below its 52-week high of $251.02 from May 2026. Investors who bought $1,000 worth of Qualcomm's shares 5 years ago would now be looking at an investment worth $1,562.

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Why AMD (AMD) Stock Is Up Today

What Happened?

Shares of computer processor maker AMD (NASDAQ:AMD) jumped 4.6% in the afternoon session after Citi analyst Atif Malik upgraded the stock to Buy from Neutral and raised his price target to $575 from $460, making the case that "the market has yet to fully recognize AMD as a legit second source in the GPU market."

The note centres on AMD's custom MI450 chips, which Citi believes give Meta Platforms lower total cost of ownership than Nvidia alternatives, backed by a six-gigawatt, four-year supply deal that includes a 160 million-share warrant and begins ramping with an initial one-gigawatt tranche in the second half of 2026. Citi projects AMD's AI GPU revenue reaching $33 billion near term and expanding to $50.8 billion thereafter.

Is now the time to buy AMD? Access our full analysis report here, it's free.

What Is The Market Telling Us

AMD's shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 22 hours ago when the stock gained 7% on the news that the Nasdaq rebounded, up 1.8%, as Trump's Iran peace deal announcement released the rate pressure that weighed on the sector all week.

Semiconductor stocks trade at elevated multiples on future earnings, making them disproportionately sensitive to interest rates. Oil falling more than 3% and the 10-year Treasury yield dropping to 4.47% released the rate hike pressure that drove the sector's worst week since 2020.

The structural AI demand story never broke: Intel's BofA double upgrade to $135 earlier in the day confirmed hyperscalers are placing real production orders at domestic foundries, and AI infrastructure capex commitments remained intact.

AMD is up 131% since the beginning of the year, and at $515.92 per share, it is trading close to its 52-week high of $542.52 from June 2026. Investors who bought $1,000 worth of AMD's shares 5 years ago would now be looking at an investment worth $6,326.

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This article first appeared on GuruFocus.

AMD (AMD, Financials) shares moved higher after Citi upgraded the stock, pointing to the company's growing opportunity in graphics processors used for AI workloads.

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The call gives investors another reason to look beyond AMD's traditional CPU business. Demand for AI computing remains strong, and Citi appears more confident that AMD can capture a larger piece of the market with its GPU products.

That matters because Nvidia still dominates AI accelerators, but large cloud and enterprise customers are looking for more supply and more choices. AMD does not need to overtake Nvidia to benefit. Even a modest gain in share could become meaningful if AI infrastructure spending continues to grow.

For investors, the upgrade is a vote of confidence in AMD's broader data center strategy. The next thing to watch is whether customer adoption, product launches and revenue growth can support that optimism.

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This article first appeared on GuruFocus.

Advanced Micro Devices (NASDAQ:AMD) rose 1.96% in premarket after Citi upgraded the stock to Buy from Neutral and raised its price target to $575 from $460, arguing AMD's emergence as a second GPU source alongside Nvidia (NASDAQ:NVDA) is not yet reflected in the stock price. Analyst Atif Malik said most investors still view AMD primarily as a CPU play, with the current share price implying only a 60% probability of AMD achieving more than $50 billion in GPU sales by 2028.

The bull case centers on Meta Platforms (NASDAQ:META). Citi believes AMD is positioned to win the lion's share of GPU business at Meta, with custom MI450 chips offering lower total cost of ownership than merchant GPU products. AMD's previously announced six-gigawatt, four-year deal with Meta includes a 160 million share common stock warrant, with the first one-gigawatt tranche ramping in the second half of 2026. Citi estimates each gigawatt translates to roughly $15 billion in revenue, and now forecasts AMD AI sales of $33 billion in 2027, up 137% year-over-year, and $50.8 billion in 2028, up 54%.

On CPUs, Citi raised its 2030 total addressable market estimate to $136.7 billion from $131.5 billion, representing a 36% CAGR from $29.3 billion in 2025. The bank's 2026-2028 EPS estimates sit 12%-13% above Street consensus. Citi's $575 target is based on a sum-of-parts valuation placing the GPU business at $281 per share and CPUs at $204 per share.

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Quick Read

Intel surged 8% Friday to lead chip stocks, outpacing AMD's 6% gain and leaving NVIDIA flat, extending INTC's dominant 217% year-to-date run. Intel's forward P/E of 123x nearly doubles AMD's 68x and quadruples NVIDIA's 32x, flagging serious valuation risk once momentum fades. Despite the rally, 31 of 48 analysts rate INTC a Hold or Sell, and a consensus target of $92 implies significant downside from current levels. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.

Shares of Intel (NASDAQ:INTC) are up 8% in midday trading on Friday, June 12, changing hands near $127. That move makes Intel the standout performer among the three mega-cap chip names investors are tracking most closely today.JasonDoiy / Getty Images

Advanced Micro Devices (NASDAQ:AMD) stock is also rallying, up 6% to $518. NVIDIA (NASDAQ:NVDA) stock is little changed near $205, which puts INTC stock clearly on top of the day's chip-sector scoreboard.

The session sits inside a much larger story for Intel shareholders. INTC stock is up 237% year to date (YTD) through Thursday's close, dwarfing AMD's 139% YTD return and NVIDIA's more modest 10% advance over the same stretch.

The Move: Intel Tops the Chip Scoreboard

Intraday data indicates that INTC stock accelerated from near $119.70 in the 9 a.m. ET hour to about $124.50 by noon. The session high so far stands above $126, with the heaviest volume concentrated in the first hour of trading at 19.1 million shares.

The rally pushes Intel within striking distance of its 52-week high of $132.75. That figure looks even more dramatic against the 52-week low of $18.96 and a 200-day moving average of $52.13, underscoring just how aggressive the rerating in Intel shares has been over the past year.

The Why: Momentum Builds Without a Single Headline

No single, discrete news catalyst has emerged to explain today's pop in Intel shares. The composite sentiment picture is constructive, however, with a bullish score of 60.4 and a 30-day trend change of +17.48. Insider activity also leans positive, with 47 recent insider transactions tilting net-buy.

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Fundamentals reported on April 23 remain part of the backdrop. Intel posted Q1 2026 revenue of $13.58 billion, up 7% year over year (YoY), with Data Center and AI revenue up 22% YoY to $5.05 billion. CEO Lip-Bu Tan has been steadily framing Intel as an inference and foundry play.

Story Continues

The sell side remains skeptical, though. The INTC consensus analyst target price of $92.17 implies meaningful downside from current levels. The breakdown is 12 Buy, 31 Hold, and 5 Sell ratings, so the crowd and the sell side don't currently agree on where Intel stock belongs.

Peers in Focus: AMD Rallies on Citi Upgrade, NVIDIA Cools

Advanced Micro Devices is having its own strong session, supported in part by a Citi upgrade to Buy with a $575 price target earlier today. AMD stock is up 6%, a solid showing, but still trailing Intel's gain on a percentage basis.

NVIDIA stock, by contrast, is barely changed after the company delivered Q1 FY2027 revenue of $81.6 billion (up 85% YoY) on May 20. The prediction markets put the probability of NVDA closing above $205 today at just 43%.

What to Watch

One strong session doesn't reset the longer narrative. Intel trades on a forward P/E ratio of 123x, while AMD carries a forward P/E ratio of 68x and NVIDIA looks comparatively reasonable on a P/E ratio of 32x. The valuation gap could matter once momentum cools.

Investors can keep an eye on whether INTC stock holds above $125 into the close, and whether today's relative outperformance versus AMD and NVIDIA carries into next week. The next major catalyst remains Q2 2026 earnings, with Intel having guided to revenue of $13.8 billion to $14.8 billion and a non-GAAP gross margin near 39%.

For now, the scoreboard is clear. Intel leads, AMD follows, and NVIDIA is taking a breather after its post-earnings cool-down. Investors who chase a single day's leader might pay for it later, so trimming into strength or sizing positions modestly can make sense when one's exposure has already run this far, this fast.

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The S&P 500 Index ($SPX) (SPY) is up +0.29%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.37%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.41%.  June E-mini S&P futures (ESM26) are up +0.28%, and June E-mini Nasdaq futures (NQM26) are up +0.39%.

Stocks are seeing support again today as reports circulate that a preliminary US-Iran peace agreement could be signed as early as this weekend, ending the military hostilities, reopening the Strait of Hormuz, and ending the US blockade on Iran and its oil exports.  Negotiations would then begin on the more intractable issues, such as sanctions against Iran, the release of $24 billion of frozen Iranian assets, and the resolution of Iranian nuclear issues.  Iran claimed it would continue to exert control over the Strait of Hormuz even after a new ceasefire agreement.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.

Stocks surged on Thursday after President Trump said he canceled planned military strikes against Iran, citing "discussions" with Iranian leadership.  He added that a "time and place of the signing" of a negotiated end to the war would "be announced shortly," and the US naval blockade of the Strait of Hormuz "will remain in full force and effect until this transaction is finalized."

WTI crude oil prices (CLN26) are down more than -1% today on hopes for a near-term US-Iran agreement and a reopening of the Strait of Hormuz.

Tech stocks are being undercut today by weakness in chip and software stocks.

In some positive news for stocks, the University of Michigan’s US Consumer Sentiment index rose +4.1 to 48.9, which was stronger than expectations for a rise to 46.0.

The markets are waiting to see how SpaceX will open for trading today after its IPO on Thursday.  Nasdaq says the shares will be released for quotation at 9:50 AM ET today, but it may take some time for regular trading to begin.

The markets are discounting a 4% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.

Overseas stock markets are higher today.  The Euro Stoxx 50 is up +1.4%.  China's Shanghai Composite closed up +1.12%.  Japan’s Nikkei-225 Stock Average closed up +2.81%.

Interest Rates

September 10-year T-notes (ZNU6) today are down -8 ticks, and the 10-year T-note yield is up +3.2 bp at 4.493%.  T-notes are seeing weakness today as the 10-year inflation expectations rate is up +0.7 bp at 2.313%, despite today’s drop in oil prices.  The T-note market remains worried about inflation pressures, which are likely to remain sticky even after the Strait of Hormuz reopens.  The T-note market has some carry-over weakness from Thursday, when demand was lackluster for the Treasury’s 30-year bond auction.

European government bond yields are trading lower.  The 10-year German Bund yield is down -1.6 bp at 3.015%.  The 10-year UK gilt yield is down -4.2 bp at 4.863%.

On Thursday, the ECB, as expected, raised the deposit facility rate by +25 bp to 2.25% from 2.00% and said, "The outlook remains uncertain, with upside risks for inflation and downside risks for economic growth." Swaps are discounting a 37% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.

US Stock Movers

Space Exploration Technologies Corp (SPCX), doing business as SpaceX, is expected to begin trading this morning after raising a record $75 billion in its IPO on Thursday.  The stock is expected to open substantially above its IPO price of $135.  The IPO was more than four times oversubscribed, indicating strong demand for the stock.  A strong showing by SpaceX today would be positive for investor sentiment and could help the upcoming IPOs for AI companies Anthropic and OpenAI.

Space-linked stocks are trading lower despite the SpaceX debut, with EchoStar (SATS) down more than -6%, and Rocket Lab (RKLB) down more than -5%.

Chip stocks are trading mostly lower today after Thursday’s sharp rally, with the iShares Semiconductor ETF (SOXX) trading slightly lower after Thursday’s rally of +8.39%.  Thursday’s rally was sparked by signs that AI spending is continuing after Oracle reported quarterly capital expenditures that were higher than expected, driven by increased data center spending.  Chip leaders today include AMD (AMD) and Intel (INTC), with gains of more than +3%.

Adobe (ADBE) is down more than -8% after CFO Dan Durn said he would leave the company on June 15, following news earlier this year that Adobe’s CEO would resign.  The Adobe news put continued downward pressure on software stocks, which were undercut on Thursday by negative earnings news from Oracle (ORCL).  ServiceNow (NOW), Atlassian (TEAM), and Workday (WDAY) are all trading down by more than -3%.

Airline stocks are seeing continued support after oil prices today moved lower, adding to Thursday’s decline.  United Airlines (UAL) and Southwest Airlines (LUV) are trading up more than +0.5%.

Energy stocks and service providers are mixed despite today’s continued slump in oil prices.  Baker Hughes is down more than -1%, but Occidental Petroleum (OXY) and Marathon Petroleum (MPC) are up more than +1%.

Astera Labs (ALAB), CoreWeave (CRWV), Nebius Group (NBIS), Rocket Lab (RKLB), and Teradyn (TER) are seeing support today after Nasdaq announced on Thursday that those stocks will join the Nasdaq 100 Index, effective at the market open on June 22.  Stocks leaving the Nasdaq 100 include Charter Communications (CHTR), Cognizant Technology Solutions (CTSH), Insmed (INSM), Verisk Analytics (VRSK), and Zscaler (ZS).

Travelers (TRV) is down more than -1% after Barclays cut its rating on the stock to underweight from equal-weight due to a downbeat outlook for profits in the property and casualty sector.

Earnings Reports(6/12/2026)

America's Car-Mart Inc/TX (CRMT), Atlantic International Corp (ATLN), Friedman Industries Inc (FRD), Liberty Live Holdings Inc (LLYVA), Pioneer Bancorp Inc/NY (PBFS), Richtech Robotics Inc (RR), Seneca Foods Corp (SENEB), Whitestone REIT (WSR). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

More news from Barchart

S&P Futures Climb as U.S.-Iran Peace Deal Nears, SpaceX Debut in FocusStocks Climb Before the Open on U.S.-Iran Peace Hopes, PPI Data in FocusNasdaq Futures Plunge as Tech Selloff Deepens, U.S. Inflation Data in FocusStocks Set to Extend Rebound Amid AI Dip-Buying

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The S&P 500 Index ($SPX) (SPY) is up +0.58%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.91%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.64%.  June E-mini S&P futures (ESM26) are up +0.70%, and June E-mini Nasdaq futures (NQM26) are up +0.79%.

Stocks are seeing support again today as reports circulate that an interim US-Iran peace agreement could be signed as early as this weekend, ending the military hostilities, reopening the Strait of Hormuz, and ending the US blockade on Iran and its oil exports.  Negotiations would then begin on the more intractable issues, such as sanctions against Iran, the release of $24 billion of frozen Iranian assets, and the resolution of Iranian nuclear issues.  However, Iran said its leaders still need to make a final decision on the proposed interim peace deal.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.

Stocks surged on Thursday after President Trump said he canceled planned military strikes against Iran, citing "discussions" with Iranian leadership.  He added that a "time and place of the signing" of a negotiated end to the war would "be announced shortly," and the US naval blockade of the Strait of Hormuz "will remain in full force and effect until this transaction is finalized."

WTI crude oil prices (CLN26) are down more than -3% today on hopes for a near-term US-Iran agreement and a reopening of the Strait of Hormuz.

In positive news for stocks, the University of Michigan’s June US Consumer Sentiment Index rose +4.1 to 48.9, which was stronger than expectations for a rise to 46.0.  Also, the University of Michigan’s June 1-year inflation expectations rate eased to +4.6% from +4.8% in May, and was weaker than expectations of +4.9%.  The June 5-10 year inflation expectations rate eased to +3.4% from +3.9% in May, weaker than expectations of +3.8%.

The markets are discounting a zero percent chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.

Overseas stock markets are higher today.  The Euro Stoxx 50 is up +1.9%.  China's Shanghai Composite closed up +1.12%.  Japan’s Nikkei-225 Stock Average closed up +2.81%.

Interest Rates

September 10-year T-notes (ZNU6) today are down -3 ticks, and the 10-year T-note yield is up +1.6 bp at 4.477%.  T-notes are seeing weakness today as the 10-year inflation expectations rate is up +0.1 bp at 2.306%, despite today’s drop in oil prices.  The T-note market remains worried about inflation pressures, which are likely to remain sticky even after the Strait of Hormuz reopens.  The T-note market has some carry-over weakness from Thursday, when demand was lackluster for the Treasury’s 30-year bond auction.

European government bond yields are trading lower.  The 10-year German bund yield is down -3.3 bp at 2.999%.  The 10-year UK gilt yield is down -6.6 bp at 4.839%.

On Thursday, the ECB, as expected, raised the deposit facility rate by +25 bp to 2.25% from 2.00% and said, "The outlook remains uncertain, with upside risks for inflation and downside risks for economic growth." Swaps are discounting a 37% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.

US Stock Movers

Space Exploration Technologies Corp (SPCX), doing business as SpaceX, started trading today near $160 per share, up nearly +20% from Thursday’s IPO of $135.  The IPO was more than four times oversubscribed, indicating strong demand for the stock.  A strong showing by SpaceX today would be positive for investor sentiment and could help the upcoming IPOs for AI companies Anthropic and OpenAI.

Space-linked stocks are trading lower despite the favorable SpaceX debut, with EchoStar (SATS) down more than -9%, and Rocket Lab (RKLB) down more than -7%.

Chip stocks recovered from early losses and are trading mostly higher.  The iShares Semiconductor ETF (SOXX) is up +2.25% today, adding to Thursday’s sharp rally of +8.39%.  Thursday’s rally was sparked by signs that AI spending is continuing after Oracle reported quarterly capital expenditures that were higher than expected, driven by increased data center spending.  Chip leaders today include Arm Holdings (ARM)with a gain of more than +10%, and gains of more than +5% in Qualcomm (QCOM), AMD (AMD), and Intel (INTC).

Adobe (ADBE) is down more than -7% after CFO Dan Durn said he would leave the company on June 15, following news earlier this year that Adobe’s CEO would resign.  The Adobe news put continued downward pressure on software stocks, which were undercut on Thursday by negative earnings news from Oracle (ORCL).  Autodesk (ADSK) is down more than -3% and Intuit (INTU) is down by more than -2%.

Airline stocks are seeing continued support after oil prices today moved lower, adding to Thursday’s decline.  United Airlines (UAL), American Airlines (AAL), and Southwest Airlines (LUV) are all up more than +3%.

Energy stocks and service providers are trading higher with today’s continued sell-off in crude oil prices.  Occidental Petroleum (OXY), Valero (VLO), and Marathon Petroleum (MPC) are all up more than +2%.

Astera Labs (ALAB), CoreWeave (CRWV), Nebius Group (NBIS), Rocket Lab (RKLB), and Teradyn (TER) are seeing support today after Nasdaq announced on Thursday that those stocks will join the Nasdaq 100 Index, effective at the market open on June 22. Stocks leaving the Nasdaq 100 include Charter Communications (CHTR), Cognizant Technology Solutions (CTSH), Insmed (INSM), Verisk Analytics (VRSK), and Zscaler (ZS).

Travelers (TRV) is seeing downward pressure after Barclays cut its rating on the stock to underweight from equal-weight due to a downbeat outlook for profits in the property and casualty sector.

Earnings Reports(6/12/2026)

America's Car-Mart Inc/TX (CRMT), Atlantic International Corp (ATLN), Friedman Industries Inc (FRD), Liberty Live Holdings Inc (LLYVA), Pioneer Bancorp Inc/NY (PBFS), Richtech Robotics Inc (RR), Seneca Foods Corp (SENEB), Whitestone REIT (WSR).

On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Key Points

Invesco Aerospace & Defense ETF maintains a significantly larger pool of assets under management (AUM) and a lower expense ratio than ARK Space & Defense Innovation ETF. ARK Space & Defense Innovation ETF has delivered higher 1-year total returns but carries a much higher beta and more substantial max drawdown than its peer. The Invesco Aerospace & Defense ETF portfolio is heavily concentrated in industrials while ARK Space & Defense Innovation ETF provides broader exposure to technology companies.10 stocks we like better than Invesco Exchange-Traded Fund Trust - Invesco Aerospace & Defense ETF ›

The Invesco Aerospace & Defense ETF (NYSEMKT:PPA)offers a lower-cost, lower-volatility approach to defense than the ARK Space & Defense Innovation ETF (NYSEMKT:ARKX), which prioritizes high-growth technology companies disrupting the space sector.

Both funds target the expanding aerospace and defense industries but take fundamentally different paths. While ARKX actively hunts for disruptive innovation across space exploration and orbital technologies, PPA follows a more established index-based strategy, favoring traditional U.S. defense contractors and homeland security firms that provide a more stable market profile.

Snapshot (cost & size) MetricARKXPPAIssuerARKInvescoExpense ratio0.75%0.58%1-yr return (as of June 8, 2026)58.1%25.1%Dividend yieldNone0.4%Beta1.410.74AUM$717.3 million$8.0 billion

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The Invesco fund is more affordable for long-term holders, with a 0.58% expense ratio compared to the ARK fund’s 0.75%. This price gap reflects the difference between active management and index tracking.

Performance & risk comparison MetricARKXPPAMax drawdown (4 yr)(25.6%)(15.4%)Growth of $1,000 over 4 years (total return)$2,352$2,410

What's inside

TheInvesco Aerospace & Defense ETF is a seasoned fund launched in 2005 that tracks an index of 61 U.S. defense and homeland security holdings. Its portfolio is heavily concentrated in industrials at 91%, with just 9% in technology. Its largest positions include The Boeing Company(NYSE:BA) at 8.7%, GE Aerospace(NYSE:GE) at 8.3%, and RTX(NYSE:RTX) at 6.9%. Over the trailing 12 months, it paid $0.66 per share in dividends. With $8 billion in assets under management (AUM), it offers significantly greater scale and liquidity than newer, thematic competitors.

In contrast, the ARK Space & Defense Innovation ETF was launched in 2021 and manages $717.3 million in assets under management (AUM). It holds a tighter basket of 45 positions and has not paid a dividend over the trailing 12 months. The portfolio has a smaller industrial tilt at 56% while carrying significant technology exposure at 27% and 8% in communication services. Top holdings include Rocket Lab USA(NASDAQ:RKLB) at 8.7%, Advanced Micro Devices(NASDAQ:AMD) at 7.9%, and L3Harris Technologies(NYSE:LHX) at 7.1%. This composition reflects an active management style that targets disruptive space technologies and innovation rather than just traditional defense contractors.

Which fund is the better buy?

Not all ETFs are alike, even when they cover the same sector.

The key difference between the Invesco Aerospace & Defense ETF and the ARK Space & Defense Innovation ETF is that the Invesco offering is a passively managed ETF meant to reflect an index, the SPADE Defense Index, while the ARK offering is actively managed, meaning a person or team is making decisions to shift assets among its investment landscape. Indeed, the weightings of ARKX’s top 10 holdings have changed notably since the end of the first quarter, with some stocks weighted more heavily other more lightly, and some replaced by new names in the top holdings list.

The active hand is paying off. The year-to-date return of ARKX is about 19%, with a 54% one-year return, and a cumulative return since its early 2021 inception of close to 75%.

The Invesco fund has done decently, with year-to-date and 1-year returns of nearly 13% and 31%, respectively, but that’s left a lot of money on the table compared to the ARK ETF.

If you trust that the active managers who have posted such good returns are acting on skill and insight, then the ARK Space & Defense Innovation ETF is the better choice, given the flexibility active management gives the fund to go in whatever direction the team sees fit to find profits. PPA, meanwhile, has to wait for the index company’s quarterly rebalancing to make any significant adjustments.

For more guidance on ETF investing, check out the full guide at this link.

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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Boeing, GE Aerospace, L3Harris Technologies, RTX, and Rocket Lab. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Quick Read

NVDA grows 85% yet trades at only 24x forward earnings, while AMD demands 68x despite slower growth and lower margins. AMD's 6 GW Meta deployment gives it a flagship hyperscaler commitment, but NVIDIA's networking revenue alone exceeds AMD's entire data center business. NVIDIA locked in $119 billion of supply commitments and launched an $80 billion buyback, while AMD still negotiates HBM4 capacity with Samsung. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.

NVIDIA (NASDAQ:NVDA) and AMD (NASDAQ:AMD) both reported earnings in May, and the contrast says everything about today's AI hardware market.24/7 Wall St.

NVIDIA posted a $81.6 billion quarter built on Blackwell dominance. AMD posted $10.25 billion, with the Meta partnership reshaping its data center story. One is the incumbent. The other is the credible challenger finally getting customer commitments at scale.

Blackwell Carries NVIDIA. Meta and MI450 Carry AMD.

NVIDIA's Data Center segment hit $75.25 billion, up 92% year over year, with networking alone at $14.8 billion (+199%). That networking line is bigger than AMD's entire data center business. Jensen Huang framed it bluntly: "The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed."

AMD's quarter was smaller but accelerating. Data Center revenue reached $5.78 billion (+57%), and Lisa Su told investors "Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations."

The 6 GW Meta deployment, starting with a custom MI450 design, gives AMD something it has lacked: a flagship hyperscaler willing to bet on its accelerator roadmap.

One Sells the Whole Factory. The Other Sells the Best Alternative.

NVIDIA's platform sweep keeps widening. Vera Rubin pairs a custom CPU with Rubin GPUs, Dynamo 1.0 reportedly lifts Blackwell inference up to 7x, and partnerships with Marvell, Corning, Lumentum, and Coherent lock in the optics layer.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.

AMD's counter is ROCm maturity, HBM4 collaboration with Samsung for the MI455X, and 6th Gen EPYC (Venice/Verano) with Meta as lead customer. Different shapes of moat.

Lens NVIDIA AMD Q1 Revenue Growth +85.2% YoY +37.9% YoY Non-GAAP Gross Margin 75.0% 55% Next-Q Guide $91.0B ~$11.2B Forward P/E 24 68

The valuation gap matters. AMD trades at a trailing P/E of 159 after a 128% YTD run. NVIDIA, despite reporting a $58 billion net income quarter, carries a forward multiple of 24. Cheaper than its smaller rival.

Story Continues

What Decides the Second Half

I will watch three things. First, whether MI450 customer forecasts translate into firm orders that show up in AMD's Q3 earnings report.

Second, NVIDIA's China exposure, since Q2 guidance excludes any Data Center compute revenue from China, leaving upside if policy shifts.

Third, supply. NVIDIA already locked in $119 billion of supply commitments, while AMD is still negotiating HBM4 capacity with Samsung.

Why I Lean NVIDIA Heading Into Summer

On a risk-adjusted basis, NVIDIA screens more favorably on the current data. The valuation spread is notable: AMD trades at 68x forward earnings while growing 38%, versus NVIDIA at 24x growing 85% with 75% gross margins, alongside a $80 billion fresh buyback and a 25x dividend hike.

NVIDIA shares have also cooled, down 8.2% since the May 20 report, while AMD rose 37.5%. The AMD case rests on Helios reshaping the competitive map; the NVIDIA case rests on scale, cash generation, and a cleaner near-term setup.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

The S&P 500 Index ($SPX) (SPY) is down -0.31%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.09%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.53%.  June E-mini S&P futures (ESM26) are down -0.15%, and June E-mini Nasdaq futures (NQM26) are down -0.37%.

Stocks are trading lower but are seeing support again today as reports circulate that a preliminary US-Iran peace agreement could be signed as early as this weekend, ending the military hostilities, reopening the Strait of Hormuz, and ending the US blockade on Iran and its oil exports.  Negotiations would then begin on the more intractable issues, such as sanctions against Iran, the release of $24 billion of frozen Iranian assets, and the resolution of Iranian nuclear issues.  However, Iran claimed it would continue to exert control over the Strait of Hormuz even after a new ceasefire agreement.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.

Stocks surged on Thursday after President Trump said he canceled planned military strikes against Iran, citing "discussions" with Iranian leadership.  He added that a "time and place of the signing" of a negotiated end to the war would "be announced shortly," and the US naval blockade of the Strait of Hormuz "will remain in full force and effect until this transaction is finalized."

WTI crude oil prices (CLN26) are down more than -1% today on hopes for a near-term US-Iran agreement and a reopening of the Strait of Hormuz.

Tech stocks are being undercut today by weakness in chip and software stocks.

In some positive news for stocks, the University of Michigan’s US Consumer Sentiment index rose +4.1 to 48.9, which was stronger than expectations for a rise to 46.0.

The markets are waiting to see how SpaceX will open for trading today after its IPO on Thursday.  Nasdaq says the shares will be released for quotation at 9:50 AM ET today, but it may take some time for regular trading to begin.

The markets are discounting a 4% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.

Overseas stock markets are higher today.  The Euro Stoxx 50 is up +1.4%.  China's Shanghai Composite closed up +1.12%.  Japan’s Nikkei-225 Stock Average closed up +2.81%.

Interest Rates

September 10-year T-notes (ZNU6) today are down -8 ticks, and the 10-year T-note yield is up +3.2 bp at 4.493%.  T-notes are seeing weakness today as the 10-year inflation expectations rate is up +0.7 bp at 2.313%, despite today’s drop in oil prices.  The T-note market remains worried about inflation pressures, which are likely to remain sticky even after the Strait of Hormuz reopens.  The T-note market has some carry-over weakness from Thursday, when demand was lackluster for the Treasury’s 30-year bond auction.

European government bond yields are trading lower.  The 10-year German Bund yield is down -1.6 bp at 3.015%.  The 10-year UK gilt yield is down -4.2 bp at 4.863%.

On Thursday, the ECB, as expected, raised the deposit facility rate by +25 bp to 2.25% from 2.00% and said, "The outlook remains uncertain, with upside risks for inflation and downside risks for economic growth." Swaps are discounting a 37% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.

US Stock Movers

Space Exploration Technologies Corp (SPCX), doing business as SpaceX, is expected to begin trading this morning after raising a record $75 billion in its IPO on Thursday.  The stock is expected to open substantially above its IPO price of $135.  The IPO was more than four times oversubscribed, indicating strong demand for the stock.  A strong showing by SpaceX today would be positive for investor sentiment and could help the upcoming IPOs for AI companies Anthropic and OpenAI.

Space-linked stocks are trading lower despite the SpaceX debut, with EchoStar (SATS) down more than -6%, and Rocket Lab (RKLB) down more than -5%.

Chip stocks are trading mostly lower today after Thursday’s sharp rally, with the iShares Semiconductor ETF (SOXX) trading slightly lower after Thursday’s rally of +8.39%.  Thursday’s rally was sparked by signs that AI spending is continuing after Oracle reported quarterly capital expenditures that were higher than expected, driven by increased data center spending.  Chip leaders today include AMD (AMD) and Intel (INTC), with gains of more than +3%.

Adobe (ADBE) is down more than -8% after CFO Dan Durn said he would leave the company on June 15, following news earlier this year that Adobe’s CEO would resign.  The Adobe news put continued downward pressure on software stocks, which were undercut on Thursday by negative earnings news from Oracle (ORCL).  ServiceNow (NOW), Atlassian (TEAM), and Workday (WDAY) are all trading down by more than -3%.

Airline stocks are seeing continued support after oil prices today moved lower, adding to Thursday’s decline.  United Airlines (UAL) and Southwest Airlines (LUV) are trading up more than +0.5%.

Energy stocks and service providers are mixed despite today’s continued slump in oil prices.  Baker Hughes is down more than -1%, but Occidental Petroleum (OXY) and Marathon Petroleum (MPC) are up more than +1%.

Astera Labs (ALAB), CoreWeave (CRWV), Nebius Group (NBIS), Rocket Lab (RKLB), and Teradyn (TER) are seeing support today after Nasdaq announced on Thursday that those stocks will join the Nasdaq 100 Index, effective at the market open on June 22.  Stocks leaving the Nasdaq 100 include Charter Communications (CHTR), Cognizant Technology Solutions (CTSH), Insmed (INSM), Verisk Analytics (VRSK), and Zscaler (ZS).

Travelers (TRV) is down more than -1% after Barclays cut its rating on the stock to underweight from equal-weight due to a downbeat outlook for profits in the property and casualty sector.

Earnings Reports(6/12/2026)

America's Car-Mart Inc/TX (CRMT), Atlantic International Corp (ATLN), Friedman Industries Inc (FRD), Liberty Live Holdings Inc (LLYVA), Pioneer Bancorp Inc/NY (PBFS), Richtech Robotics Inc (RR), Seneca Foods Corp (SENEB), Whitestone REIT (WSR).

On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.