Dear Friend,

When SpaceX files its S-1 in June, one number will stand out above everything else.

Power consumption.

Running 1 million GPUs requires more electricity than some small countries use in a year.

That number has to go in the filing. SEC rules.

And when it does, every analyst on Wall Street will scramble to find who supplies the equipment.

One small company already has the answer — and a $1.5 billion backlog to prove it.

Dylan Jovine has the name and ticker.

See the stock the S-1 will expose >>

“The Buck Stops Here,”

Dylan Jovine

Behind the Markets

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Further Reading from MarketBeat

Years in the Making, AMD’s Upside Movement Has Just Begun

Submitted by Thomas Hughes. Posted: 5/6/2026. 

Key Points

• Advanced Micro Devices’ GPUs compete and complement NVIDIA’s, setting the stage for both to proliferate.
• AMD is prime for inference, providing lower-cost, higher-memory products at scale.
• A single NVIDIA AI factory equates to numerous AMD AI inference centers.
• Special Report: Elon Musk’s $1 Quadrillion AI IPO

It has been years in the making, but Advanced Micro Devices (NASDAQ: AMD) is positioned to accelerate revenue and sustain elevated growth for years to come as it becomes the spokes to NVIDIA’s (NASDAQ: NVDA) hub. NVIDIA’s GPUs and AI infrastructure offer many advantages and will continue to power AI. However, Advanced Micro Devices GPUs, specifically the MI450 line set to launch this year, also offer advantages that are reshaping the AI landscape.

NVIDIA has the first-mover advantage and strong positioning, as its stack was well developed before the AI boom—which it effectively helped create—and is best suited for high-power, rapid model training and the broader spread of AI.

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When the SpaceX IPO launches, most retail investors will be locked out. The banks, funds, and insiders get in early – while everyone else waits on the sidelines.

But one small infrastructure supplier – a critical piece Musk can’t scale the Colossus network without – is still trading well under institutional radar. A new briefing reveals the name and ticker at no cost.Get the SpaceX infrastructure stock name and ticker here

Disadvantages of NVIDIA’s products include cost, operating expense, and utility across workloads, areas where MI450s and Helios rack-scale systems excel. Advanced Micro Devices is well-positioned to benefit from NVIDIA’s dominance in AI training, as a single NVIDIA AI factory can produce enough AI models to support many AMD-based inference centers.

In this environment, NVIDIA’s revenue growth can easily be outperformed, and there is evidence that the shift is already underway. Hyperscalers, including Oracle (NASDAQ: ORCL), Meta (NASDAQ: META), OpenAI, Microsoft (NASDAQ: MSFT), and Google (NASDAQ: GOOGL), have either committed to Advanced Micro Devices’ products, with deployments expected to begin in Q3 this year, or are preparing for them by planning smooth system integrations. The common denominators are choice, cost, and purpose, as these systems can be integrated into an ecosystem capable of massive inference.

AMD Rockets Higher: Business Is Good for Training and Inference

Advanced Micro Devices’ Q1 earnings results were a blowout, with revenue growth accelerating to 37.8% and topping the consensus estimate by more than 300 basis points. Strength was seen in both CPUs and GPUs, affirming the momentum foreshadowed by Intel (NASDAQ: INTC) and driven by broad-based demand. The critical takeaway is that AMD is well-positioned not only to deliver GPUs, but also to supply much-needed CPUs to drive AI workloads across use cases. The Data Center segment led, up more than 50%, followed by a 23% increase in Client & Gaming and a 6% gain in Embedded.

Margins were another area of strength. The company experienced margin pressure but managed it well, producing $1.5 billion in GAAP operating income, $2.5 billion in adjusted operating income, and $1.37 in adjusted earnings per share (EPS). Adjusted EPS was up 185% from the prior year, outpacing consensus by more than 600 basis points, and is expected to remain strong in the coming quarters.

The guidance was good, and that may be understating it. Typically cautious, Lisa Su says growth will accelerate meaningfully in the coming quarters, forecasting high-single-digit sequential growth in Q2, an acceleration to 46% year over year, and continued strength. MI450 and Helios will be catalysts in the coming quarters, driving considerable strength, as she also said customer engagement exceeds company expectations. Looking ahead, Su also raised the long-term target, doubling her view of the CPU addressable market to $120 billion.

Advanced Micro Devices Valuation Is Way Out of Whack: Significant Upside Expected

It may take time, but Advanced Micro Devices’ revenue is on track to approach or even exceed NVIDIA’s within the next few years. The company’s forward-looking estimates appear far too low, and even the consensus as of early May suggests considerable upside remains available. Compared with NVIDIA, which trades at an approximate $4.75 trillion market cap, AMD’s $570 billion valuation is a drop in the bucket, setting the stage for a 500% to 600% stock price increase over time.

The analyst response to the report has been robust, with numerous commentaries highlighting the strength and outlook, the agentic AI tailwind, and the upcoming MI450 launch. As it stands, MarketBeat tracks 41 analysts with ratings; they provide an 80% Buy-side bias, no analyst rates the stock a Sell, and the price target trend is positive. The price action is roughly aligned with the consensus figure, but high-end targets are favorable, with Rosenblatt setting a new high of $490. That high-end target represents 35% upside from the pre-release closing price and is unlikely to be the end of this trend.

The price action is eye-catching, given the April advance. AMD’s share price surged 20% in after-hours and pre-market trading, setting a fresh high near $420. The move was driven in part by options activity, so further volatility is expected.

Chasing the stock higher is risky, as whipsaws and outsized moves are likely. Critical support is near the pre-opening close and may be retested before the upcoming earnings release. That is when the real catalyst will emerge: Q3 guidance, in which Helios rack-scale systems will be sold.

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Further Reading from MarketBeat

The Hormuz Defense Hedge: Cashing In on Chaos

Submitted by Jeffrey Neal Johnson. Posted: 5/7/2026. 

Key Points

• Lockheed Martin’s Missiles and Fire Control unit is showing robust growth, aligning the company with new government defense spending priorities.
• RTX Corporation’s massive order backlog provides exceptional long-term revenue visibility, supported by strong performance in its Raytheon division.
• Recent executive actions have cemented a clear and durable demand signal for advanced defense hardware from premier U.S. aerospace contractors.
• Special Report: Elon Musk’s $1 Quadrillion AI IPO

The administration’s aggressive Project Freedom initiative to escort ships through the Strait of Hormuz, combined with an $8.6 billion arms sale, is creating meaningful tailwinds for top defense contractors. By sidestepping congressional review, the executive branch has directly allocated substantial contracts to key players, helping cement a multi-year revenue pipeline.

While near-term operational headwinds have created some market noise, the underlying long-term demand signal for advanced missile defense and naval munitions appears poised to accelerate. Two recent executive actions are fundamentally reshaping the order books for U.S. defense giants.

The #1 stock to buy BEFORE the June S-1 filing (Ad)

When the SpaceX IPO launches, most retail investors will be locked out. The banks, funds, and insiders get in early – while everyone else waits on the sidelines.

But one small infrastructure supplier – a critical piece Musk can’t scale the Colossus network without – is still trading well under institutional radar. A new briefing reveals the name and ticker at no cost.Get the SpaceX infrastructure stock name and ticker here

The first is a unilateral $8.6 billion arms sale to key Middle Eastern allies, including Qatar, Kuwait, and the United Arab Emirates. The second, Project Freedom, involves deploying naval assets to secure commercial shipping lanes in the contested Strait of Hormuz. Together, these actions remove legislative uncertainty and inject capital directly into the production lines of established contractors, creating an actionable path for investors seeking a wartime-hedge strategy.

Titans of the Arms Deal

The geopolitical shift directs investor attention to the specific beneficiaries of these hardware sales. RTX Corporation (NYSE: RTX) is a primary beneficiary, tasked with fulfilling a $4.01 billion order for its Patriot air and missile defense systems. Concurrently, Lockheed Martin Corporation (NYSE: LMT) is designated as the principal contractor for a $2.5 billion integrated battle command system for Kuwait. The naval escort mission further reinforces continuous demand for interceptors and munitions needed for sustained maritime operations.

Lockheed’s Discount Dogfight

Investors looking at Lockheed Martin must reconcile a challenging first quarter with a strengthening long-term demand outlook.

Lockheed Martin’s stock price has appreciated 6% year-to-date, but its recent earnings report created cause for concern. Lockheed Martin reported first-quarter 2026 earnings per share (EPS) of $6.44, falling short of the consensus estimate of $6.79.

This miss was compounded by negative free cash flow of $291 million, attributed to working capital timing and a complex ERP system rollout. Margin compression was also evident in its Aeronautics division. A deeper look, however, reveals a more nuanced picture. The Missiles and Fire Control segment, directly aligned with the new catalysts, posted robust 8% year-over-year growth. Lockheed Martin trades at a trailing P/E ratio of 25, but its forward P/E is a more modest 17. This suggests analysts expect earnings growth as production normalizes. The current dividend yield of 2.7% also offers investors a solid income stream.

RTX’s $271 Billion War Chest

In contrast, RTX Corporation delivered strong operational performance, underscoring its readiness to meet surging demand. RTX’s stock price is down more than 4% year-to-date, a decline that appears disconnected from its fundamentals.

RTX posted first-quarter 2026 EPS of $1.78, comfortably beating the analyst consensus of $1.52 on the back of an 8.7% revenue increase. RTX’s consolidated backlog now stands at a massive $271 billion, providing exceptional revenue visibility. Crucially, its Raytheon division reported a 10% organic sales increase, driven by the very hardware now being fast-tracked to the Middle East.

RTX is not just winning contracts; it is actively delivering the systems most in demand. This strong execution commands a higher valuation, with a trailing P/E of 33 and a forward P/E of about 26, reflecting the market’s confidence in its ability to convert backlog into predictable cash flow.

Weighing the Wartime Hedge

Investors should remain mindful of the structural headwinds facing the entire aerospace and defense sector. Persistent supply chain fragility, particularly regarding titanium costs and a shortage of skilled labor, acts as a natural cap on how quickly contractors can ramp up production. These factors mean the revenue from the $8.6 billion deal will be recognized over a multi-year period, not as an immediate quarterly windfall.

The investment thesis is therefore one of long-cycle, predictable growth rather than a short-term trade. The current geopolitical climate has created a clear and durable demand signal for a specific subset of defense hardware. For investors, the choice between Lockheed Martin and RTX hinges on their investment philosophy.

Investors with a higher risk tolerance might consider Lockheed Martin, given its current operational challenges and lower forward P/E, which could present a value opportunity. The key metric to watch will be Lockheed Martin’s ability to resolve its cash flow and margin issues in the coming quarters. A successful turnaround in its Aeronautics unit, combined with continued strength in Missiles and Fire Control, could unlock significant upside.

Alternatively, investors who prioritize execution and revenue visibility may find RTX’s premium valuation justified by its strong performance and direct alignment with current defense priorities. Monitoring RTX’s backlog conversion rate and the continued performance of its Raytheon division will be critical to ensure the premium holds. Both companies appear poised to benefit from structural tailwinds, but their paths to realizing that value present distinct risk and reward profiles for an investor’s portfolio.

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