AI & Defense Players Capture Q2 Investor Interest: 2 Stocks to Buy Now

Investors entered Q2 2026 reallocating capital into sectors with durable earnings and macro tailwinds, concentrating on AI infrastructure and defense/energy. NVIDIA (NVDA.OQ) is a primary beneficiary of sustained AI capex, reporting $62.3B in data‑center revenue (up 75% YoY) and seeing strong demand tied to hyperscalers and partnerships, prompting outsized share gains. Howmet Aerospace is highlighted as a defense/aerospace beneficiary, raising 2026 guidance on stronger backlogs and defense spending. Sticky April inflation and resilient labor data have reduced near‑term rate‑cut expectations, concentrating flows into companies with pricing power and long‑cycle demand, and driving institutional inflows into NVDA and HWM.N. Overall market impact: rotation of capital toward AI and defense names, supporting elevated valuations and near‑term outperformance for these stocks amid a less accommodative policy outlook.