The prior week saw an unprecedented influx of market activity with several leading large-cap stocks experiencing remarkable ascents. This surge was predominantly influenced by multiple converging factors, including anticipated increases in defense budgets, strategic alliances in AI infrastructure, and speculative discussions surrounding corporate acquisitions.
Among the foremost gainers was Regencell Bioscience Holdings Limited (NASDAQ:RGC), which registered an exceptional increase of 89.45% for the week. Following closely, Revolution Medicines, Inc. (NASDAQ:RVMD) saw its shares climb by 51.38%, fueled by reports indicating that Merck is engaged in negotiations to acquire the firm with the transaction estimated between $28 billion and $32 billion.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) experienced a 36.12% uplift, a movement influenced by B. Riley Securities' decision to elevate its stock price forecast from $105 to $128. This rise was further reinforced by public statements from President Donald Trump emphasizing a proposed escalation of the U.S. military budget to $1.5 trillion by 2027, up from the current projection of $1 trillion.
AeroVironment, Inc. (NASDAQ:AVAV) advanced by 35.86% subsequent to its announcement of a collaboration with Parry Labs aimed at developing Modular Mission Systems for the U.S. Army's P550 Unmanned Aerial System (UAS). This partnership highlights the strategic focus on enhancing military operational capabilities through innovative unmanned technologies.
Karman Holdings Inc. (NYSE:KRMN) saw its stock price rise by 33.91%, buoyed by its agreement to acquire Seemann Composites for $220 million. The acquisition aligns with broader trends in defense industry consolidation and expansion.
Meanwhile, Sandisk Corporation (NASDAQ:SNDK) enjoyed a gain of 33.15% following reports from Tom’s Hardware that the company intends to double the prices of its 3D NAND products utilized in enterprise solid-state drives starting in the first quarter of 2026. Supporting this bullish momentum, Mizuho analyst Vijay Rakesh maintained an Outperform rating on the stock and increased the price target from $250 to $410, indicating robust market confidence in Sandisk’s pricing power and product strategy.
Bloom Energy Corporation (NYSE:BE) added 30.55% after announcing the establishment of a $600 million senior secured multicurrency revolving credit facility, in partnership with Wells Fargo. This credit agreement extends through December 2030, providing the company with enhanced financial flexibility for forthcoming initiatives.
Oklo Inc. (NYSE:OKLO) reported a 29.04% rise following its disclosed accord with Meta, focused on advancing the development of a 1.2 gigawatt power campus intended to support Meta’s data center infrastructure. This collaboration underscores the growing intersection between clean energy ventures and major technology firms.
Applied Digital Corporation (NASDAQ:APLD) experienced a 29.48% increase driven by the release of adjusted second-quarter earnings and revenue figures that surpassed market expectations, signaling strong operational performance.
Figure Technology Solutions, Inc. (NASDAQ:FIGR) achieved a 29.33% gain after Keefe, Bruyette & Woods raised its price target from $52 to $62, reflecting positive reassessment of the company's growth prospects.
These developments illustrate a dynamic market environment where defense-related spending, AI infrastructure collaborations, merger and acquisition activities, and corporate financial health are key drivers influencing large-cap stock performance.
Key Points:
- Significant gains in several large-cap stocks were propelled by increased defense budget expectations and industrial collaborations.
- Major corporate moves include Revolution Medicines’ potential acquisition by Merck and Karman Holdings’ purchase of Seemann Composites.
- Technology-related companies like Sandisk and Oklo benefited from strategic pricing changes and partnerships with leading firms.
- Financial maneuvers such as Bloom Energy’s new credit facility and Applied Digital’s strong earnings contributed to stock momentum.
Risks and Uncertainties:
- The planned increase in U.S. defense spending remains subject to governmental approval and future policy changes.
- Discussions of Revolution Medicines’ acquisition by Merck are still preliminary and may not culminate in a definitive agreement.
- Market reactions to Karman Holdings’ acquisition could vary depending on integration success and industry conditions.
- Future pricing strategies by companies like Sandisk may impact demand elasticity and competitive dynamics.