3 Tech Defense Stocks That Could Be the Next Palantir

POINTS

Palantir (PLTR) surged 368% over the past 12 months, reflecting strong market demand for companies that integrate advanced technology with defense applications.
Three emerging companies—BlackSky, Redwire, and Archer Aviation—have demonstrated significant market validation, with stock gains ranging from 40% to 690% in the past year.
These companies possess strong strategic capabilities and solid financial positioning, resembling Palantir’s early fundamentals and making them potential industry leaders.
The U.S. Department of Defense (DoD) and global governments are rapidly adopting AI, satellite technology, space infrastructure, and electric aviation in their defense strategies.

BlackSky Technology BI

Stock performance: +40% over the past 12 months
Provides AI-powered real-time satellite image analysis, delivering actionable insights within 90 minutes.
Spectra Platform: Uses AI and machine learning to extract meaningful insights from high-resolution satellite imagery.
Key Clients:
- U.S. Department of Defense, National Reconnaissance Office (NRO), NASA, international government agencies, and private sector clients.
Financial Metrics:
- Projected 2025 revenue growth: 25.8%
- Price-to-sales (P/S) ratio: 2.86x, indicating relative undervaluation in the sector.
Competitive Advantage:
- Similar AI-based intelligence capabilities as Palantir.
- The increasing demand for satellite intelligence in both defense and commercial markets ensures steady growth potential.
Risks:

RedWire BI

Stock performance: +690% over the past 12 months (outperforming Palantir).
Provides space infrastructure and AI-based manufacturing solutions for defense, commercial, and civil missions.
Key Clients & Partners:
- NASA, SpaceX, pharmaceutical and biotech companies.
Core Technologies:
- Satellite power generation, microgravity research solutions, and AI-powered space infrastructure automation.
Financial Metrics:
- Projected 2025 revenue growth: over 35%
- Contract pipeline value: approximately $6.9 billion
- P/S ratio: 5.2x, higher than industry peers due to its strong market positioning.
Competitive Advantage:
- Strategic partnerships with NASA and SpaceX ensure a stable revenue stream.
- Exclusive space technology gives Redwire a significant competitive edge in the industry.
Risks:

High R&D and initial infrastructure costs.
Dependence on government space exploration budgets, which may fluctuate based on political and economic conditions.

Archer Aviation BI

Stock performance: +90% over the past 12 months
Originally focused on electric vertical takeoff and landing (eVTOL) aircraft, now expanding into military applications.
Strategic Partnership:
- Partnered with Anduril Industries to develop AI-powered hybrid VTOL aircraft for the U.S. Department of Defense.
Key Clients & Investors:
- U.S. DoD, BlackRock, Stellantis, United Airlines.
Financial Metrics:
- Total liquidity: approximately $1 billion (secured an additional $300 million from institutional investors).
- Improved profitability outlook following expansion into the defense sector.
Competitive Advantage:
- As a leading eVTOL manufacturer, fast development cycles and scalable production give it a significant advantage.
- Expanding into military air mobility solutions, a sector with rising demand.
Risks:

The eVTOL industry is still in its early stages, requiring further development before large-scale commercialization.
Uncertainty regarding long-term DoD contracts and sustainability of defense revenue.

The U.S. Department of Defense is actively integrating AI, satellite intelligence, electric aviation, and space infrastructure into its military strategies.
Post-Palantir, these new players are emerging as the next wave of defense-tech leaders.

BlackSky: AI-driven satellite intelligence → Poised for long-term growth in both defense and commercial markets.
Redwire: Space infrastructure & automation → Dominant position in the space industry.
Archer Aviation: eVTOL-based defense mobility → Well-positioned for the military's increasing interest in next-gen aviation.

With Palantir’s current valuation at 208x forward earnings, relatively undervalued stocks like BlackSky and Redwire may offer greater upside potential.
The intersection of defense and AI technology suggests higher growth prospects than traditional defense contractors.

Investors seeking the next Palantir-like growth stock should consider BlackSky, Redwire, and Archer Aviation.
BlackSky: Undervalued AI-powered satellite intelligence provider.
Redwire: Space infrastructure leader with strong partnerships.
Archer Aviation: eVTOL manufacturer expanding into military applications.
As defense technology continues to evolve, these three companies could be the next major players in the sector.

Source: Motley Fool