Drone stocks experienced a notable surge on Thursday, driven by reports that the Trump administration is in talks to fund several companies in the sector.
The Pentagon has reportedly been in months of discussions with a group of firms, including one where Donald Trump Jr. holds an equity stake.
The proposed deals aim to increase domestic production and reduce the costs of drones, which are seen as vital in modern warfare.
The market reaction highlights the growing strategic importance of drone technology.
This development aligns with broader concerns about national security and the need for advanced defense capabilities.
Former CIA director David Petraeus has previously warned that drone swarms could become one of the most significant security threats and growth opportunities in the defense sector over the next decade.