Defense, drone and space stocks such as AST SpaceMobile, Rocket Lab, Planet Labs, Kratos and AeroVironment are set to receive non-cyclical, perpetual capex while many sit 60%-70% below their highs. Spending is rising in the US and across the rest of the world, flowing to names that are not crowded or recently up 1,000%. The sector has reset and been left for dead, making it a target basket for next year, including Ondas, LightPath, nLight, Karman and Inflection Point. x.com  x.com 

A US military-budget increase would be well-timed for defense stocks as most appear to be bottoming or sitting on support. If history repeats, one will probably be announced soon. Since the earlier sell signals, Amprius is down about 42%, AeroVironment about 60% and Ondas about 54%; many other names also look oversold. x.com 

Legacy defense primes such as Lockheed Martin, RTX and Northrop Grumman are losing work as counter-drone contracts go to newer software-defined systems. The US deployment of Anduril's counter-drone system for homeland defense shows a company that did not exist a decade ago doing what legacy air-defense primes used to own outright. The trade is that reallocation inside flat-to-modest budgets, not the budget number itself. x.com 

Small-cap defense stocks such as Red Cat, AEVEX and Kraken Robotics look like buying opportunities after a sell-the-news drop following the Iran strikes, because the thesis has only gotten stronger. The U.S. lacks enough drones, interceptors, mine-hunting technology and critical metals, and a proposed $1.5 trillion defense budget should bring a wave of fresh contracts as it advances. The Iran war is a major catalyst even though Lockheed, Kratos and Red Cat have fallen 15-19% in a month. x.com 

Public defense stocks look mispriced because demand and private valuations are rising while their shares fall 20%. Anduril raised $5 billion at $61 billion, about 28x sales, while Ondas trades near 5x with a comparable counter-drone stack. The five primes' backlog rose 23.7% to $1.36 trillion, and the Pentagon's FY2027 request has $75 billion for drones and counter-drone tech. Peace rotates spending rather than ending it, and as in the 1990s, a bear market should spur small-cap consolidation. … Show more

Defense contractors such as Lockheed Martin and RTX always dump the day peace headlines land, because the conflict buildup was the trade. Explanations about how Patriot and THAAD performed, as @HyperTechInvest suggests, are what people tell themselves afterward. x.com 

Drone and autonomy stocks are where government money is going next, as Trump pursues funding deals to boost domestic drone production. Dell is up over 50% since Trump said to buy it, and drone names could do the same once he announces picks. The list spans AeroVironment, Kratos, Red Cat, Ondas, Draganfly, Unusual Machines, Swarmer and Palladyne AI; counter-drone names DroneShield and L3Harris; and primes Northrop Grumman, Lockheed Martin, Textron, General Dynamics and Boeing. x.com  x.com 

Defense money is rotating into next-generation drone makers such as AeroVironment and Red Cat, not just legacy plays like Lockheed's F-35, after NATO members pledged 5% of GDP to defense, roughly a second U.S. military budget. x.com 

RTX, a $300B company, now depends on a US budget burdened by $1.7T of interest expense on $40-42T of debt. That is the response to @JaguarAnalytics' bullish read on Raytheon's $22.9B multiyear Navy contract for Tomahawk cruise missiles, which supports a production ramp to more than 1,000 missiles a year. x.com 

Government spending is defense's version of AI hyperscaler capex but more dependable, and the market isn't pricing it in. Global defense is seen at $3T+ for 2027 versus about $1T of hyperscaler capex, and the Pentagon seeks $80B in wartime spending on top of a $1.5T budget. With Lockheed Martin, Northrop Grumman, Kratos, AeroVironment, AEVEX and Kraken Robotics 24-58% off highs, capital could rotate back soon, especially if institutions diversify from AI, rewarding contrarians in 3-6 months. … Show more