economy
Drone industry is on pace for big Pentagon contracts. These stocks would benefit the most
The proposed $1.5 trillion defense budget means the U.S. government will scale up purchases from drone companies in fiscal 2027.
TL;DR
- The White House has proposed a $1.5 trillion defense budget for fiscal 2027, a 44% increase from fiscal 2026.
- An estimated $63 billion of the proposed budget is allocated for drone technology, a significant jump from 2026 levels.
- The majority of the drone funding is expected to go towards the Defense Autonomous Weapons Group for rapid production of low-cost drones.
- Companies like AeroVironment, Ondas, Karman Holdings, and Amprius Technologies are identified as potential beneficiaries of this increased spending.
- Analysts have set price targets for these stocks, suggesting significant potential upside.