From Yahoo Finance: 2025-03-31 14:20:00

The global defense spending hit a record high of $2.46 trillion in 2024 due to increasing security threats and improved national budgets. The defense industry has seen significant growth, with top contractors reaching all-time highs in shares. European and Asian defense stocks are experiencing a bull run, while American stocks struggle.

UBS analysts are optimistic about the defense sector, citing shrinking downside potential. Citi analyst Jason Gursky recommends buying American defense stocks, emphasizing the importance of deterrence tools. President Trump’s unveiling of the F-47 fighter jet and plans to boost shipbuilding have reignited investor interest in US defense stocks.

Huntington Ingalls Industries, Inc. (NYSE:HII) has gained 1.91% this week, ranking 5th among defense stocks. The company was awarded a contract to build a High-Energy Laser weapon system for the Army and launched the USS Jeremiah Denton. While defense companies show potential, AI stocks may offer higher returns within a shorter timeframe.

If you are interested in investing in AI stocks, consider checking out reports on the best AI stocks to buy and those recommended by billionaires. No specific recommendations are provided in this article, which originally appeared on Insider Monkey’s website.

Read more: Why Huntington Ingalls Industries, Inc. (HII) Is Gaining This Week?