The US military budget for 2026 is close to $1 trillion. Although it increased by 13% year-on-year, the most explosive part is not the total amount, but where the money is going: heavy assets are giving way to "algorithms + unmanned swarms"!

The future battlefield will no longer be a contest of pilots, but a duel of AI computing power.

I've compiled a list of 6 representative companies in this wave of "military intelligence" (not a recommendation, just a logical breakdown):

Unmanned Aerial Vehicle (UAV) direction:

1、$Aerovironment(AVAV.US): The maker of the "Switchblade" drone with an impressive track record. It has relatively high order certainty and holds billions of dollars in contracts.

2、$Red Cat(RCAT.US): Focuses on small military drones, already integrated into the US military system. If orders continue to grow, it's a long-term business.

3、$Kratos Defense & Security(KTOS.US): Works on unmanned combat aircraft and hypersonic-related technologies. High potential, but the key is whether the military will make large-scale purchases later.

AI Hub and Computing Power

4、$Palantir Tech(PLTR.US): The "brain" of the future battlefield. It doesn't build aircraft, it builds command systems that link drone swarms into a collaborative network.

5、$One Stop(OSS.US): Edge computing hardware, enabling unmanned vehicles to possess formidable computing power even without network connectivity.

Dark Horse Potential, Small-Cap Volatility Stocks

6、$Ondas(ONDS.US): Small size, high elasticity. The core logic is its autonomous control system. The next step is to see if it can meet the 2026 revenue guidance of $180 million!

A word of caution:

Defense stocks are different from tech stocks. They have long order cycles and are heavily influenced by policy, especially small-cap companies which experience very volatile swings—they surge fiercely and fall just as unceremoniously.

Summary:

The nature of warfare has changed! It has shifted from "expensive, few, large equipment" to "cheap, numerous, autonomously collaborative unmanned swarms." Whoever can best integrate "unmanned systems + AI + computing power" will likely be the core beneficiary of the next phase of military upgrades.