Kratos Defense & Security Solutions

KTOS

Market cap $12B

Drone stocks erupted higher yesterday after reports surfaced that the Trump administration is considering directing government funding toward domestic drone manufacturers.

Jensen Huang keeps quoting a $40 trillion humanoid robot TAM, and the market is rewarding every concept video and 2030 roadmap that mentions the word robot.

Defense drone stocks are surging at midday Thursday after a Wall Street Journal and CNBC report indicated the Pentagon is in talks with drone manufacturers about funding deals that could include direct federal equity stakes.

President Donald Trump‘s administration has made a habit of taking equity stakes in American industries it deems strategically critical — Intel Corp. (NASDAQ:INTC), rare earth mining companies like MP Materials (NYSE:MP) and others have already seen the government show up as a part-owner rather than just a customer.

The Wall Street Journal reports the U.S. Pentagon may give financial support to U.S. drone companies. Several companies were named as likely winners.

The Trump administration continues efforts to bolster its drone arsenal as the Pentagon discusses potential funding deals with companies.

President Donald Trump's administration is preparing to deepen its ties with corporate America by way of talks with several prominent drone companies, per a May 27 Wall Street Journal report.

A new global defense investment cycle is extending beyond the largest primary defense contractors to include nimbler high-tech defense businesses, and Europe is emerging as a key driver of rising. Defense priorities are shifting from legacy platforms toward faster, more autonomous and more software-enabled unmanned systems, defense electronics and aerospace capabilities. We believe compelling opportunities exist in smaller, specialized companies that form crucial links in the defense supply chain, can create new platforms faster and offer more diversified exposure to defense.

KTOS and CW are tapping rising defense spending as military modernization and aerospace demand fuel growth opportunities.

The headlines belong to AI and semiconductors right now. Chips are soaring, data center buildout stocks are making new highs, and the momentum crowd is firmly in control.