Solar stocks, including First Solar (FSLR) and Sunrun (RUN), are rising after an early proposal of the Republican spending bill was not as bad as expected. Plug Power (PLUG), however, is falling as lawmakers consider eliminating a hydrogen production tax credit, which would negatively impact the company.

Raymond James analysts initiated coverage of Super Micro Computer (SMCI), giving the stock an Outperform rating and setting a price target of $41.

Archer Aviation (ACHR) stock is soaring after the company announced a partnership with Palantir (PLTR).

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

Video Transcript

00:00 Speaker A

Now time for some of today's trending tickers sponsored by TD trade. We're taking a look at some of the moves in the solar sector as well as the latest from super micro computer and archer aviation. For Solar and Sunrun among those getting a boost today after the early drafts of a Republican tax and spending bill weren't as bad for renewables as some feared. Plug power is sinking as the lawmakers also proposed eliminating a production tax credit for hydrogen, which is what plug power produces here. Um, I like the comment from Julian Demulan Smith over at Jeffries. He said the big beautiful draft bill more scalpel than sledgehammer in terms of how it's going to affect, um, some of these solar companies that it won't be as aggressive or an elimination of everything that was helping the industry and not right away. There are some sort of phase outs that are happening Josh.

01:08 Josh Lipton

Yeah, I did see analysts at JP Morgan cited saying, uh, US budget reconciliation bill better than the more bullish end of investor expectations for solar, wind and geothermal companies. They say first solar best positioned name to benefit from the bill. Our take is a clear positive against very low expectations. Though they say we caution that the bill is merely the first step in the process, um, and potential changes are still possible as it navigates broader Congress.

02:03 Speaker A

And then for plug power, it does look like that analysts are viewing that was a more straightforward negative because they're just getting rid of the hydrogen credit entirely. Uh, we should mention also these renewable energy companies have really been shellacked because of concerns over what this was going to, what this new administration was going to mean for them. So some of this coming on the back of that.

02:48 Josh Lipton

That's on a number of names. We're moving higher today. Sunrun, Shoals, Ray Technologies, uh, ETFs like Global X Solar, all moving higher. All right, super microcomputer shares. They're jumping after Raymond James initiates coverage on the stock with an outperformed, so they are believers. Company emerging as a market leader in AI optimized infrastructure. They say that it's positioned in a sweet spot between branded IT suppliers and contract manufacturers. Company has jumped into the lead with 9% of AI platform market, 31% share among branded suppliers.

03:53 Speaker A

Yeah, exactly. They do, you know, they do talk about call out some risks potentially. They say there is lumpiness, um, that affects the business and the valuation. They've call out the negative pre-announcement that we got from Super Micro recently. However, they're looking at the sort of bigger picture here of the infrastructure build out and saying the company is going to benefit from that.

04:31 Josh Lipton

Yeah. And on tariff risk and trade tensions, they say, yes, that's an overhang for the subsector. Super Micro's largest facility, they point out is in Taiwan, another is in Malaysia, but unlike competitors, they told clients, it does have a substantial US footprint.

05:01 Speaker A

And let's take a look at Archer aviation, flying high today. The company announced it's getting close to entering commercial service with its battery powered vertical takeoff and landing aircraft. Archer announcing a new partnership with Palantir as well. Um, so they've got a scheduled launch in the UAE, um, for later this year, and they say that that is on track. The company, by the way, also came out with its numbers, but since it doesn't really operate yet, its numbers are sort of less relevant than these partnerships that could result in earnings down the road.

05:48 Josh Lipton

Yeah, Canter rates this one overweight. Uh, they say continue to view the partnerships, they point out with Anduril, DOD, United Airlines, Atlanta as important differentiators that should help the company ramp up its commercialization efforts, increase the tam, facilitate operations and manufacturing. Their target is, it looks like 13.

06:23 Speaker A

I guess I think of these as giant drones that fit people inside. Is that the electric vehicle takeoff and landing?

06:45 Josh Lipton

Yeah. Canter not alone by, I'm just looking most on the street like this one. Stock is a machine, by the way. It's up about 13% this year. It's up around 200% over the past 12 months.  Related Videos

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