Daily Tech: LHX, NVTS, AMD, and SMCI are positioned for growth

FutureGate | May 22 2025

Defense Stocks Rally on Strategic U.S. Missile Initiative

Shares of L3Harris Technologies climbed following its formal inclusion in the United States' ambitious “Golden Dome” missile defense program, announced by former President Donald Trump. The initiative, likened to Israel’s Iron Dome, is designed to provide continental missile protection and is slated to be “fully operational” by the end of Trump’s term if he is re-elected. The project has triggered geopolitical scrutiny, particularly from China, which warns it could accelerate an arms race. From a defense investment perspective, the inclusion of a key player like L3Harris validates long-term cash flow visibility as national security budgets expand.

The market interpreted this announcement as a strategic tailwind for domestic defense contractors, reaffirming the defensive sector’s relevance amid rising geopolitical tensions and a structurally higher defense spending regime in the U.S. and allied nations.

Navitas Semiconductor Jumps on Nvidia AI Partnership

Navitas Semiconductor shares surged after the company announced a landmark partnership with Nvidia, signaling a strong vote of confidence in Navitas’ proprietary gallium nitride (GaN) and silicon carbide (SiC) power solutions. These materials are increasingly critical to improving energy efficiency in AI and high-performance computing systems.

This tie-up is particularly notable as Nvidia continues to dominate the AI chip landscape, and its selection of Navitas as a strategic partner places the latter in a rapidly scaling supply chain. For investors, the Nvidia link de-risks Navitas’ growth outlook, offers potential volume upside, and anchors the firm within a broader AI ecosystem that continues to command premium market multiples.

AMD Unveils Cutting-Edge AI and Gaming Chips at Computex

Advanced Micro Devices (AMD) used the Computex 2025 platform to debut its latest generation of AI and gaming processors, directly challenging Nvidia’s performance leadership. The new lineup includes GPUs and CPUs purpose-built for generative AI workloads, edge inferencing, and next-gen gaming environments.

This launch marks a significant escalation in the AI chip arms race, with AMD seeking to expand share in both data center and consumer gaming markets. As hyperscalers and enterprise customers scale AI deployment, AMD’s increasingly competitive roadmap suggests the company is moving beyond its traditional x86 CPU stronghold to become a more holistic AI computing provider.

From a portfolio perspective, AMD’s innovation cadence remains critical to sustaining valuation multiples, especially amid increased market sensitivity to capital expenditure returns from cloud service providers and AI firms.

Super Micro Computer to Boost U.S. Server Capacity Amid AI Boom

Super Micro Computer (SMCI) announced plans to expand its U.S.-based server production facilities to meet surging demand tied to AI infrastructure. As enterprises and cloud providers invest heavily in AI workloads, SMCI is positioning itself as a key enabler of scalable, energy-efficient server systems optimized for large language models and real-time inferencing.

The move reflects growing concerns over supply chain localization, data sovereignty, and thermal efficiency — all vital to scaling AI deployments. SMCI’s ability to offer modular, high-density systems at speed has earned it a premium valuation and has increasingly aligned it with Nvidia’s upstream supply network.

This domestic expansion signals continued revenue visibility and capacity leverage, as the company capitalizes on what it terms a “multi-year AI infrastructure upgrade cycle.” Investors should note the favorable backdrop for capital-intensive tech suppliers as AI shifts from pilot to production at scale.