Modern warfare is shifting from tanks and fighter jets to AI software, satellites and autonomous systems — and a handful of companies are emerging as key beneficiaries. Two of the most visible names in this emerging AI defense trade are Palantir Technologies Inc. (NASDAQ:PLTR) and Rocket Lab Corporation (NASDAQ:RKLB), both of which have secured major contracts tied to the Pentagon's next-generation warfare infrastructure.
AI Becomes A Core Military Capability
Palantir has become one of the Pentagon's most important software partners.
The company won a $480 million U.S. Department of Defense contract in 2024 to develop the Maven Smart System, an AI platform designed to integrate satellite imagery, drone feeds and battlefield intelligence into targeting and decision-making systems.
That program has since expanded significantly. The U.S. Army added a $795 million contract modification in 2025, and the broader framework agreement with the Army could be worth up to $10 billion over the next decade.
Those deals position Palantir as a central player in the military's shift toward AI-driven battlefield intelligence.
Space Becomes The Next Defense Layer
Meanwhile, Rocket Lab is becoming increasingly important to the Pentagon's space-based defense architecture.
In December 2025, the company secured an $816 million U.S. Space Force contract to design and manufacture 18 satellites equipped with sensors for missile warning and tracking systems.
The program supports the Pentagon's effort to build a large constellation of defense satellites capable of tracking hypersonic missiles and other threats.
Two More Stocks In The Defense Tech Stack
Traditional defense giant Lockheed Martin Corp (NYSE:LMT) remains a cornerstone of U.S. military programs, including missile defense and advanced fighter aircraft. The company recently received contracts tied to the F-35 program and other weapons systems, reflecting continued demand for traditional platforms.
Meanwhile, drone manufacturer AeroVironment, Inc. (NASDAQ:AVAV) has benefited from rising demand for unmanned and loitering munitions systems used by U.S. forces and allies.
Together, the four companies highlight a broader shift: defense spending is increasingly flowing toward AI software, satellites and autonomous systems — not just traditional weapons.
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This article Palantir And Rocket Lab Are Leading The AI Defense Trade — 2 More Stocks Riding The Boom originally appeared on Benzinga.com
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