7 stocks related to 'Defense' are on the rise! Trump Trade continues, with focus on AI technology. 4 stocks are also catching up.

In addition,The relationship between the defense industry and Artificial Intelligence (AI) is deepening.and there are signs of deepening. OpenAI, which develops interactive AI,a U.S. company, announced in early December a partnership with a startup in military technology to provide technology for anti-drone defense systems for the U.S. military.OpenAI, which has prohibited military use of its AI, has shifted its policy to allow some military applications. As a defense-related stock,the utilization level of AI technologyfor anti-drone defense systems for the U.S. military.is increasing.も注目ポイントとなりそうだ。上昇トレンドにある7銘柄とレンジ内で推移している出遅れ気味の4銘柄をピックアップした。

大手重工を中心に上場来高値を更新
In the contract amount performance with the Defense Equipment Agency for the fiscal year 2023,overwhelmingly the topwas $Mitsubishi Heavy Industries (7011.JP)$updating their record highs since listing earlier this year, with some stocks soaring by more than 1.6 times in stock price over the last 3 months. $Kawasaki Heavy Industries (7012.JP)$、 $NEC (6701.JP)$、 $Mitsubishi Electric (6503.JP)$、 $Fujitsu (6702.JP)$Continued. TheseThe top 5 stocks are all trending upwards in the long term with the 200-day moving average. isIn this year There are also noticeable stocks that have updated their all-time highs (considering splits) since listing. The recent PE ratio is higher compared to the average PE ratio of the past 2 years. $Mitsubishi Heavy Industries (7011.JP)$、 $NEC (6701.JP)$、 $Mitsubishi Electric (6503.JP)$On the other hand, it is lower for $Kawasaki Heavy Industries (7012.JP)$、 $Fujitsu (6702.JP)$Supplying aviation turbine fuel. $Idemitsu Kosan (5019.JP)$、 $ENEOS Holdings (5020.JP)$Also contracts are large, ranking in the top 20 in terms of amount.

The top 3 companies in contract performance are steadily rising.
◆ $Mitsubishi Heavy Industries (7011.JP)$　
総合重機。防衛装備庁との23年度契約実績は防衛用高速滑空弾etc1 trillion680.3 billion円Ranked first. The sales of the 'Aviation, Defense, and Space' segment this fiscal year account for about 20% of the total outlook. The company is significantly expanding its defense business, and is in the process of greatly increasing its human resources.Plans to increase its workforce by 40% by fiscal year 2026.Scheduled to increase investment in production facilities by 30%.As stated in the latest financial results briefing, they plan to increase investment in production facilities by 30%.As stated in the latest financial results briefing, they plan to increase investment in production facilities by 30%.防衛省から無人機のAI開発を受注しており、25年度中に実験用航空機で実証試験する計画という。防衛に加え、原子力関連も堅調で、高浜原発1、2号機の炉内工事を受注。原子力や発電プラントなどを含む「エナジー」セグメントは同社の主力で、利益の半分を稼ぐ。データセンター事業にも注力している。株価は、Reached a new high of 2485 yen per share on December 5th.Only.On a monthly basis, it has formed seven consecutive bullish candles, indicating a strong uptrend.is in progress.

◆ $Kawasaki Heavy Industries (7012.JP)$
A leading comprehensive heavy equipment company. It handles submarines and aircraft for the Self-Defense Forces. The contract performance for the 23 fiscal year with the Defense Equipment Agency includes patrol planes and transport planes.Trucking planes and transport planes.etc388.6 billion yenThe company's finance director, Vice President Katsuya Yamamoto, stated in an interview with Nikkei Shimbun (dated June 18) that the defense business revenue is expected to reach 400 billion yen by the end of March 2025.and is expected to grow to a maximum of 700 billion yen by the end of March 2031.Currently, there are no specific plans for M&A (mergers and acquisitions), but they are considering AI and drones.However, there have been a series of fraudulent issues this year.However, they are considering AI and drones.However, there have been a series of fraudulent issues this year.The submarine repair department is under investigation for allegedly raising secret funds through fictitious transactions and providing submarine crew members with coupons and covering meal expenses. The creation of secret funds was revealed during a tax investigation by the Osaka National Tax Agency. In August, irregularities in the inspection of ship engines also surfaced. As there are only two companies in Japan capable of building submarines, the company and Mitsubishi Heavy Industries, market insiders seem to believe that the stock price risk is low unless there is a suspension of designation by the Ministry of Defense. The stock price hit a 7,155 yen high on November 8th.Reaching a new high of 7,155 yen since listing.。

◆ $NEC (6701.JP)$
A major provider of IT services for public agencies and businesses. With over 90 years of experience in defense business. The contract performance with the Defense Equipment Agency in the fiscal year 23 wasCloud system for the Air Self-Defense Forceetc670.1 billion yenhas been accumulated over many years in AI research.Working on the practical application of proprietary AI.Starting AI agent services next year. The company's AI technology is being developed under the brand 'NEC the WISE'. With world-class biometric authentication technologies like facial recognition and fingerprint authentication. The stock price is at a level about 10% lower than the recent high of 14,470 yen set on October 7, attracting attention on whether it can turn around.

What are the top 4 stocks with high year-to-date growth trends other than the above 3 stocks?
◆ $IHI (7013.JP)$
Stock prices have risen by about 200% year to date.
It has strengths in aviation engines, large boilers, rocket-related technologies, etc. It accounts for about 70% of Japan's jet engine production. It is responsible for the development and production of aviation engines operated by the Ministry of Defense as the main contractor, and handles all models for fighter jets. The contract performance for the fiscal year 2023 with the Acquisition, Technology & Logistics Agency isSubmersible drones, fighter jets, fighter jet engine systemsetc125.7 billion yen. On October 11, the company announced that its data scientist won second place in the global AI data analysis competition 'Kaggle'.It reached a record high of 9479 yen on November 11th since the listing.。

◆ $The Japan Steel Works (5631.JP)$ 　
Up approximately 156% year-to-date.
A steel company that handles steel plates and castings for thermal and nuclear power. The contract performance with the Japanese Ministry of Defense for the fiscal year 2023 isRailguns, armored vehicles, and artillery shellsetc57 billion yenApplying AI technology to their own manufacturing processes and products.

◆ $Hitachi (6501.JP)$ 　
Up 97% year-to-date
Leading in comprehensive electrical and heavy electrical machinery, with a wide range of businesses. The contract performance in the fiscal year 23 with the Defense Equipment Agency isCloud system for the Air Self-Defense Forceetc79.3 billion yenOn September 24th of this year, the US semiconductor giant NVIDIA announced the development of a system to inspect the safety of railway infrastructure. Hitachi has deployed its own IoT platform, 'Lumada,' and integrated AI technology into it. They have strengths in AI solutions for industries such as manufacturing and social infrastructure.Reached an all-time high on October 30th since its listing.

◆ $Howa Machinery (6203.JP)$ 　
Up about 63% year-to-date.
A long-standing manufacturer in industrial machinery.The only domestic manufacturer of military rifles.However, for the Ministry of Defense, rifle orders have increased leading to increased production. Most recently, in October, they secured a contract for a 76mm smoke grenade launcher. In the machinery sector, they are working on developing automated systems using AI and robots. Although they were in the red in the previous period, the expectation is for a return to profit in the current period. They reached a 52-week high on December 9th.

Which are the three related stocks that are lagging behind?
◆ $TOKYO KEIKI (7721.JP)$
A pioneer in marine navigation instruments for commercial ships. For the Ministry of Defense,they deal with oil pneumatic equipment, fluid equipment, and others. With an increase in defense budget, navigation devices for ships and aircraft components are on the rise. They are currently developing image AI inspection systems for inspection equipment manufacturers. They also have products related to Edge AI.ETC. Developing an image AI inspection system for inspection equipment manufacturers. Also working on Edge AI related products.

◆ $Nippon Avionics (6946.JP)$
Defense-oriented information system equipmentIt is the main business. Originally part of the NEC Group, but withdrew on April 1, 2022, and became a subsidiary of Japan Industrial Partners. Developed products that incorporate AI into infrared thermographic cameras. It is used for infection prevention measures, monitoring of factories and plants, as it allows for facial recognition and body temperature measurement.

◆ $Oki Electric Industry (6703.JP)$
Information and communications systems, as well as printers. Also provides AI-related systems such as AI video analysis. Defense-related sector is expanding due to increased government budget. Customers include the NTT Group. The 2023 contract results with the Ministry of Defense Equipment areAerial-style passive sonars, sonar devicesetc28 billion yenThe downward trend was due to the decrease in profits this term as the special demand for ATM-related businesses subsided due to the transition to new banknotes.On the 13th, it broke above the 200-day moving average with a large positive candlestick.。

◆ $ShinMaywa Industries (7224.JP)$
Leading in special vehicles such as dump trucks. The Maritime Self-Defense Force operates the only domestically produced amphibious aircraft, the US-2.US-2, the only domestically produced amphibious aircraft, led by special vehicles such as dump trucks.Produced with the ability to take off and land even in open seas with waves as high as 3 meters. High Dividend Concept. On November 12, along with three other companies in the special vehicle product sector, it was reported that they were under investigation by the Fair Trade Commission on suspicion of cartel.

Year-to-date price fluctuation of defense-related stocks.
Related stocks not listed above: $ITOCHU (8001.JP)$、 $GS Yuasa (6674.JP)$、 $Ishikawa Seisakusho (6208.JP)$、 $Komatsu (6301.JP)$、 $TOYO (8151.JP)$、 $Subaru (7270.JP)$、 $NOF (4403.JP)$