We're building Stablestock to enable onchain trading of popular stocks like NVDA and PLTR.

We're building Stablestock to enable onchain trading of popular stocks like NVDA and PLTR.

In a recent report, leading mutual funds have placed significant bets on defense stocks, with AAR Corp. (AIR) emerging as the top choice. The report, published by Investors.com, highlights the substantial investments made by these funds in both defense and aerospace sectors, as well as in prominent AI companies like Nvidia (NVDA), Microsoft (MSFT), Palantir Technologies (PLTR), and Broadcom (AVGO).

The defense sector has seen a significant influx of capital, with a total of 10 defense stocks making the list. Among these, AAR Corp. stands out, with mutual funds investing an impressive $8.06 billion in the provider of airframe and engine parts and services for airline and defense markets. This investment is part of a broader trend where mutual funds are increasingly focusing on defense stocks, potentially driven by geopolitical tensions and the need for advanced technologies in the sector [1].

Notably, other defense stocks such as GE Aerospace (GE), Heico (HEI), RTX (RTX), and Howmet Aerospace (HWM) have also seen substantial investments. These stocks have been performing well, with several reaching or near their 52-week highs. However, some have experienced volatility, with shares of AAR and Heico recently testing support at their 10-week moving averages [1].

In addition to defense stocks, mutual funds have also shown interest in AI and tech companies. Nvidia, a leading AI chipmaker, saw capital inflows of $4.83 billion, while Microsoft, a software and cloud giant, pulled in $3.69 billion. Palantir Technologies, known for its data analysis and AI capabilities, received $1.71 billion. Broadcom, another AI chipmaker, saw $1.44 billion invested in it [1].

This trend of investing in AI and tech companies is not new but has been gaining momentum. The StableStock platform, which aims to bridge trillions of equity liquidity into DeFi, has been facilitating on-chain trading of popular stocks like NVDA and PLTR. The platform, built around the on-chain stock ecosystem, allows users to trade U.S. equities directly with stablecoins, providing 24/7 trading opportunities [2].

The tokenized equities market, as seen with xStocks, has also shown significant growth. The total trading volume for xStocks recently surpassed $2 billion, with a majority of trading occurring on centralized exchanges (CEXs). The tokenized version of Tesla stock, in particular, has gained popularity among investors, with over 11,000 holders [3].

As mutual funds continue to diversify their portfolios, the focus on defense and AI stocks highlights the potential for growth in these sectors. The increasing interest in tokenized equities and on-chain trading further underscores the evolving landscape of the financial markets.

References:
[1] https://www.investors.com/etfs-and-funds/mutual-funds/best-mutual-funds-bet-big-on-aar-nvidia-palantir-microsoft-broadcom/
[2] https://www.stablestock.finance/
[3] https://www.tradingview.com/news/the_block:146c518b4094b:0-backed-s-xstocks-which-includes-tokenized-tesla-shares-surpasses-2-billion-in-trading-volume/