Dear subscriber,
Over the weekend, the world got a real-time reminder of how fast geopolitics can shift.
Former Venezuelan President Nicolás Maduro was captured by U.S. forces and flown to New York to face federal charges. It was a dramatic, high-stakes operation — and a stark signal that global security tensions are not just theoretical anymore.
But this wasn’t happening in a vacuum.
Just two weeks earlier, President Trump quietly signed the 2026 National Defense Authorization Act (NDAA) into law. That bill locked in a record-setting $901 billion defense budget, giving the Pentagon a green light to spend aggressively on everything from weapons systems and personnel to cutting-edge military technology.
The NDAA, signed on December 18, is essentially Washington’s blueprint for how America plans to defend itself in 2026 and beyond. It sets priorities for research, modernization, and next-generation capabilities — including the shift toward autonomous systems, artificial intelligence, and unmanned platforms.
Put those two events together — a real-world military operation over the weekend and a massive defense budget approved just days earlier — and you get a clear message: the future of warfare is changing, and Washington is funding that change.
And that’s where investors should be paying attention.
UAS
One of the biggest beneficiaries of this shift is drones and unmanned aerial systems (UAS). These technologies are no longer experimental. They are becoming central to how modern militaries operate — from surveillance and intelligence gathering to precision missions that reduce risk to human lives.
That combination of rising global tension and a flood of new defense spending is creating a powerful tailwind for companies building the next generation of unmanned systems. And it’s opening the door to what could become one of the most important defense investment trends of 2026 and beyond.
Drones: From Tactical Tools to Strategic Assets
As I mentioned, drones aren’t some futuristic concept anymore — they’re already doing the real work. Today’s UAS are at the center of modern military operations, handling everything from surveillance and intelligence gathering to battlefield monitoring and precision missions where putting a human pilot at risk simply doesn’t make sense.
And this market is only getting bigger.
Defense officials and industry analysts expect strong growth in drone spending over the coming years, fueled by three powerful forces:
1. rising global defense budgets,
2. rapid advances in AI and autonomous flight, and
3. the expanding use of drones beyond the military — into logistics, infrastructure inspection, and mapping.
Operations like the Maduro capture make this trend impossible to ignore. High-level missions now rely heavily on persistent aerial surveillance and real-time intelligence, exactly where drones excel. These systems don’t sleep, don’t get tired, and don’t put lives in danger — which is why militaries around the world are doubling down on them.
And now, with the NDAA signed and $901 billion in defense spending unlocked, funding for unmanned systems, sensors, and autonomous platforms is set to accelerate. For investors, that creates a clear setup: Washington is writing the checks, and drone companies are in position to cash them.
This is how the next big defense technology wave begins — and the stocks tied to it are just starting to move.
Drone-Focused Stocks Worth Watching
Below is a strategic list of publicly traded companies with meaningful exposure to drone technologies — from core manufacturers to broader defense plays:
Pure-Play and Core UAS Makers
AeroVironment, Inc. (AVAV) — Producer of small tactical drones used extensively by military and government customers.
Kratos Defense & Security Solutions (KTOS) — Builds drones and autonomous systems for defense applications.
Ondas Holdings (ONDS) — Through subsidiaries like American Robotics, specializes in autonomous commercial unmanned systems.
Red Cat Holdings (RCAT) — Modular drone hardware and software for industrial and defense markets.
Draganfly, Inc. (DPRO) — Professional drone platforms with government and safety contracts.
Defense Giants with UAS Exposure
These companies don’t sell consumer drones, but benefit from the shift toward unmanned capabilities:
RTX (RTX) — Defense electronics, sensors, and drone payload integration.
Northrop Grumman (NOC) — High-end unmanned ISR systems.
Boeing (BA) — Military UAS platforms within a diversified defense portfolio.
Why This Matters for Investors Now
Now put the pieces together.
You’ve got a $901 billion defense budget locked in by law. You’ve got a Pentagon that is openly shifting toward autonomous systems, AI, and real-time intelligence platforms. And you’ve got real-world operations — like the Maduro capture — proving that this technology isn’t theoretical. It’s already being used.
That combination is exactly how multi-year defense spending cycles begin.
As modernization dollars start flowing, drone makers, sensor companies, and the tech firms that power autonomous flight are all lining up for a wave of new contracts. This isn’t just about buying more jets or tanks — it’s about building networked, unmanned systems that can see, think, and act faster than any human force.
For investors, this is the sweet spot: a long-term government funding tailwind, a real-world security catalyst, and a technology shift that’s still in the early innings.
That’s why drone stocks aren’t just a short-term trade — they’re shaping up to be one of the most important defense growth themes of 2026 and beyond.
Talk soon,
Matt McCall
Founder, NXT Wave Research
