Focus Stock: U.S. Missile Inventory Crisis Drives 00965 Up Over 2% to New High

As global defense financial reports enter their final disclosure phase, U.S. AI defense software and national security technology firms are experiencing explosive profitability. Combined with market optimism over tightening U.S. missile inventory, Yuanta Aerospace & Defense Tech (00965-TW) opened over 2% higher today (10th), reclaiming its record high.

Amid prolonged U.S.-Iran tensions, America's global defense posture faces rapidly depleting air defense missile stocks. A Washington-based think tank estimates Patriot missile inventories have declined by 65% compared to pre-war levels. The Washington Post reported that the U.S. Deputy Secretary of Defense recently sent letters to defense contractors, urging accelerated delivery schedules and expanded production capacity.

According to the Center for Strategic and International Studies (CSIS), production peaks due to high consumption are not limited to Patriot missiles but also include THAAD and precision strike missiles. Lockheed Martin, a primary manufacturer, has seen its stock rise 13.5% over the past month.

Yuanta Aerospace & Defense Tech (00965-TW), which covers defense supply chains across North America, Europe, and the Asia-Pacific region, surged on the 10th, hitting a new intraday high of NT$27.20. The fund has gained 7.4% over the past week. Since global market volatility began in July, 00965 has risen 7.4%, outperforming major tech indices such as the Philadelphia Semiconductor Index, which fell 13.3%.

Institutional analysts note that AI and defense are currently two dominant themes in global equities, both reflecting the strategic pursuit of global leadership. The structural growth driven by capital investment is significant. In defense, Palantir, the U.S. leader in AI defense software, reported 90% year-on-year growth in U.S. government business in Q2 and 149% growth in commercial business driven by its AI platform. Its stock has rebounded sharply, rising 33.3% over the past month.

Analysts emphasize that the global defense industry benefits from clear policy support and firm order backlogs, reducing the risk of oversupply—a common issue in cyclical tech sectors. As countries advance new fiscal year defense budget legislation, ongoing policy and financial announcements are expected to sustain upward momentum in defense stocks. Investors are advised to consider strategic positioning.

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