This article looks at the 10 best drone stocks to buy according to billionaires. We will also discuss recent trends in the industry from both the military and commercial contexts.
Over the past week, swarms of loitering drones filled the skies of India and Pakistan as the two nuclear-armed neighbors in South Asia waged what the BBC described as the world’s first drone war. This revolution in warfare has blurred the lines between man and machine, resulting in a need for a reassessment of military capabilities.
READ ALSO: 10 Best Military Drone Stocks to Buy Now and Goldman Sachs Defense Stocks: Top 12 Stock Picks.
Drones were a prominent feature of the Nagorno-Karabakh conflict between Azerbaijan and Armenia, and have also clouded the skies across several towns and cities during the Russia-Ukraine war. With the demand for drones surging over the last few years, defense tech start-ups such as Anduril Industries are redefining modern warfare through the next generation of autonomous, AI-driven systems.
The company has built a range of modular, AI-guided drones and uncrewed aircraft for the US military, which is presenting a challenge for traditional defense contractors, due to its superior tech defense capabilities that are cheaper and autonomous.
In December last year, Anduril announced a partnership with OpenAI, which will further enable the deployment of advanced AI systems for defense missions. The move is part of a growing trend among artificial intelligence companies to walk back bans on the military use of their products, with many firms entering into partnerships with the Department of Defense.
Anduril is also working on guarding against the threats posed by UAVs. In October 2024, the DoD awarded a $250 million contract to the company to counter drone attacks against American forces. Under the contract, the US will receive 500 recoverable Roadrunner interceptors, which are reusable drones that can intercept incoming drones or land back on the ground if they are not engaged.
When people think of drones, they often associate them with expensive military aircraft or personal recreational use. However, several corporations are now utilizing drones for commercial applications, such as deliveries, data collection, and inspections.
According to a report in January this year, the global commercial drone market size was estimated to have a value of $29.91 billion in 2024. It is projected to reach $33.96 billion in 2025 and climb to $93.78 billion by 2033, amid a surge in the deployment of drones for commercial operations.
With that said, let’s now head over to the list of the best drone stocks to buy according to billionaires.
Palmer Luckey of Anduril
Our Methodology
We sampled stocks from ETFs with exposure to drones and our previous articles on the subject. The pool of stocks included both military and non-military drone companies that develop and explore solutions to enable drone technologies to operate more efficiently.
From there, we picked the top 10 stocks with the highest number of billionaires having a stake in them, as per Insider Monkey’s Q4 2024 proprietary database of billionaires’ stock holdings. Where two or more stocks were tied on billionaire sentiment, we used the dollar value of billionaire holdings as a tiebreaker between them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Drone Stocks to Buy According to Billionaires:
10. Elbit Systems Ltd. (NASDAQ:ESLT)
Number of Billionaires: 6
Billionaire Holdings: $6,483,797
Elbit Systems Ltd. (NASDAQ:ESLT) is an Israel-based defense technology company, offering a comprehensive range of military drones, from the man-portable Skylark LEX to the multi-mission Hermes-900. According to reports, Elbit’s SkyStriker was among the drones used by the Indian military against Pakistan in the recent conflict.
The stock has had year-to-date returns of 47%, driven by high-value defense contracts and robust financial performance. In November last year, Elbit Systems Ltd. (NASDAQ:ESLT) won awards worth $335 million to supply defense systems to a European country. The weapons include PULS rocket launchers and rockets, and Hermes 900 unmanned aircraft systems that are equipped with advanced payloads.
The company also boasts capabilities in counter-UAS solutions, which has earned it a strong reputation of being one of the best drone stocks. In January, a NATO European country awarded Elbit Systems Ltd. (NASDAQ:ESLT) a $60 million contract for its multi-layered Counter Unmanned Aerial Systems (C-UAS).
Elbit Systems Ltd. (NASDAQ:ESLT) is expected to report earnings for the first quarter of fiscal 2025 on May 20. Analysts forecast EPS of $2.3 for the quarter, which, if met, will represent a 27% increase from the same period last year.
9. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Billionaires: 7
Billionaire Holdings: $78,352,940
AeroVironment, Inc. (NASDAQ:AVAV) designs and manufactures unmanned aerial vehicles, ground robot systems, and loitering munition systems.
On May 6, the company launched Red Dragon, a fully autonomous, software-designed UAS developed for one-way attack missions. The drone is built to operate in high-threat environments where traditional technology fails. It is built on AeroVironment, Inc. (NASDAQ:AVAV)’s AVACORE shared integration software, which enables rapid development, modular mission integration, and scalable manufacturing.
In April, AeroVironment, Inc. (NASDAQ:AVAV) secured a $47 million contract from Italy for its JUMP 20 VTOL medium uncrewed aircraft system (MUAS), a fixed-wing UAS, designed for advanced ISR missions. The contract will run for five years and includes the procurement of drones, engineering services, initial sustainment, and onsite support.
Earlier this month, AeroVironment, Inc. (NASDAQ:AVAV) announced the successful completion of the acquisition of BlueHalo LLC, a leading space and defense engineering company. This is expected to help AVAV further expand its portfolio amid ongoing geopolitical tensions in different parts of the world.
Wall Street analysts are bullish on AeroVironment, Inc. (NASDAQ:AVAV) with a consensus Buy rating and anticipate an 18% uptick, on average, in its share price. Investor sentiment also remains strong. According to Insider Monkey, 7 billionaires hold a stake in the company, making it one of the best drone stocks to buy.
8. Textron Inc. (NYSE:TXT)
Number of Billionaires: 8
Billionaire Holdings: $436,530,442
Textron Inc. (NYSE:TXT) manufactures products for consumers across several industries, through its six business segments: Bell, Textron Aviation, Textron eAviation, Textron Systems, Industrial, and Finance.
The company is working on the FTUAS Option 3 and Option 4 award for the US Army, under which it will complete flight and MOSA demonstrations and deliver an Aerosonde Mk. 4.8 Hybrid Quad uncrewed aircraft system for test and evaluation.
Besides being a recognized leader in UAVs, Textron Inc. (NYSE:TXT) also enjoys expertise in unmanned surface vehicles (USV). It was recently awarded a three-year, $100 million contract by the Naval Sea Systems Command to perform payload integration and software support activities for the Mine Countermeasures (MCM) Unmanned Surface Vehicle (USV).
On April 24, Textron Inc. (NYSE:TXT) announced financial results for the first quarter of fiscal 2025, topping estimates for both revenue and earnings. The strong results were driven by robust demand for the company’s military helicopters and aftermarket parts and services in the Aviation segment.
With returns of nearly 17% over the past month and an average share price upside potential of 13.71%, Textron Inc. (NYSE:TXT) is one of the best drone stocks to invest in. According to Insider Monkey’s database base for Q4 2024, 8 billionaires have a stake in the company, with combined holdings of over $436 million.
7. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Billionaires: 11
Billionaire Holdings: $319,024,019
L3Harris Technologies, Inc. (NYSE:LHX) specializes in end-to-end technology solutions connecting the air, space, land, and sea domains in national security. It is also considered a leader in unmanned and autonomous systems.
Late last year, the company was selected by the Defense Innovation Unit (DIU) to develop a command and control system prototype to simultaneously operate thousands of autonomous assets, in line with the Department of Defense’s Replicator initiative to enhance US military’s posture through swarms of uncrewed aircraft, seacraft, and ground vehicles.
In February, L3Harris Technologies, Inc. (NYSE:LHX) introduced AMORPHOUS, its new software, featuring a single user interface to operate thousands of autonomous assets at the same time. It is designed with an open architecture and includes an intuitive and distributed command-and-control interface, which will allow the US military to control a mix of platforms, payloads, and systems simultaneously, even if they are manufactured by another producer.
L3Harris Technologies, Inc. (NYSE:LHX) is an important player in the US defense sector and has received several notable contract awards already this year from the DoD and American allies. Reports in Reuters earlier this month indicate the company has been tapped by the US government to work on overhauling a Boeing 747 into an interim Air Force One, with President Trump wanting the aircraft to be ready as early as fall.
According to Insider Monkey’s database, 11 billionaires have investments in L3Harris Technologies, Inc. (NYSE:LHX), making it one of the best drone stocks to buy. Wall Street analysts are also bullish on LHX, with a consensus Buy rating and an average share price upside potential of 17%.
6. Honeywell International Inc. (NASDAQ:HON)
Number of Billionaires: 13
Billionaire Holdings: $804,066,772
Honeywell International Inc. (NASDAQ:HON) is an integrated operating company that helps organizations address their most complex challenges in aviation, automation, and energy transition. It is an important player in the military drone market.
The company’s share price has surged by 10% over the past month, with a major spike following the first quarter 2025 results on April 29 in which the industrial and aerospace giant beat analysts’ expectations for revenue and profit. Honeywell International Inc. (NASDAQ:HON) also lifted its adjusted EPS guidance for the full year, despite flagging a $500 million exposure to tariffs.
In October last year, Honeywell International Inc. (NASDAQ:HON) partnered with Merlin Labs to bring autonomy to a wide range of aircraft, including military fleets, by integrating its advanced avionics suite with Merlin’s non-human pilot system to reduce pilot workloads during special missions.
On April 29, the US Army picked Near Earth Autonomy and Honeywell International Inc. (NASDAQ:HON) to lead a $15 million program to deliver an autonomous Black Hawk logistics solution. Under the agreement, the two companies will retrofit the helicopters with advanced autonomy kits, transforming the aircraft into high-tempo, uncrewed logistics platforms.
Honeywell International Inc. (NASDAQ:HON) is one of the best drone stocks to buy. According to Insider Monkey’s database, 13 billionaires held a stake in the company as of Q4 2024. Wall Street analysts are bullish on the stock with a consensus Buy rating and an average share price upside potential of 8.24%.
5. Lockheed Martin Corporation (NYSE:LMT)
Number of Billionaires: 13
Billionaire Holdings: $1,297,066,521
Lockheed Martin Corporation (NYSE:LMT) is one of the largest defense contractors in the world. It is famed for manufacturing notable fighter jets, including the F-35. The company also delivers advanced autonomous solutions to the US military to meet the needs of its most demanding missions.
In March, after extensive flights earlier in the year, Lockheed Martin Corporation (NYSE:LMT)’s Sikorsky successfully proved the capability of a ‘rotor-blown wing’ UAS in airplane and helicopter modes. The battery-powered, 52-kg drone demonstrated maneuverability and operational stability across all flight regimes, and can also be scaled to larger sizes with hybrid-electric propulsion
Other prominent UAVs developed by Lockheed Martin Corporation (NYSE:LMT) include the RQ-170 Sentinel, Stalker, and Indago 4. The company continues to invest heavily in autonomy and artificial intelligence. It has demonstrated its capabilities in crewed-uncrewed teaming, AI-driven autonomous systems, and integrated technologies at numerous recent US Army events.
Earlier this year, Lockheed Martin Corporation (NYSE:LMT) demonstrated a new approach to countering drones by unveiling a scalable counter-unmanned aerial system (C-UAS), which is designed to detect, track, and defeat threats from UAVs. These developments reflect the company’s immense significance in the drone market.
With holdings worth nearly $1.3 billion from 13 billionaires, Lockheed Martin Corporation (NYSE:LMT) is one of the best drone stocks to buy right now.
4. Northrop Grumman Corporation (NYSE:NOC)
Number of Billionaires: 14
Billionaire Holdings: $1,635,472,404
Northrop Grumman Corporation (NYSE:NOC) is a leader in autonomous aerial systems and has developed notable military drones like the RQ-4 Global Hawk and MQ-4C Triton.
According to a report, the company unveiled ‘Lumberjack’, its one-way attack drone, at the Modern Day Marine Expo in Washington, DC, late last month. The jet-powered loitering munition can function autonomously and under human control, and can be launched from both the ground and air, making it effective for use in electronic warfare, reconnaissance operations, and kinetic strikes.
Northrop Grumman Corporation (NYSE:NOC) has received notable, high-value drone contracts over the past year, including a $267 million award in March from the US Navy to produce two additional MQ-4C Triton drones, as part of the service’s plans to have a fleet of 27 to bolster ISR capabilities.
The company is also working on a $387 million foreign military sales contract awarded by the DoD in April 2024 to sustain Italy, Japan, and South Korea’s RQ-4 Global Hawk drones. Moreover, the first of the four Tritons was delivered to Australia in June last year, with the second and third set for delivery later this year.
On April 22, Northrop Grumman Corporation (NYSE:NOC) reported financial results for Q1 FY25, with significant year-over-year decreases in revenue and net earnings, due to several contracting delays and the timing of material receipts. Despite the setback, Street analysts remain bullish, with a consensus Buy rating and an average share price upside of over 15%.
According to Insider Monkey’s database for Q4 2024, 14 billionaires held a stake in the company, making it one of the best drone stocks to buy.
3. RTX Corporation (NYSE:RTX)
Number of Billionaires: 17
Billionaire Holdings: $3,137,353,172
RTX Corporation (NYSE:RTX) holds immense relevance in the UAV segment due to its focus on drone-based missile systems and counter-drone technologies, and expertise in radars, sensors, and electronic warfare offerings.
According to reports, the US Navy will deploy the USS Gerald R. Ford strike group with Anduril’s Roadrunner-M and RTX Corporation (NYSE:RTX)’s Coyote counter-drone systems. The two additional missile systems will be specifically designed to target unmanned aircraft.
The Coyote effector is a low-cost, rail-launched missile variant, featuring a boost rocket motor and a high-speed turbine engine that enable it to defeat both small to large unmanned aerial systems and swarms of drones of varying sizes. The Coyotes are paired with Raytheon’s Ku-band Radio Frequency Sensor, which provides them with detection and defeat capabilities.
Last month, RTX Corporation (NYSE:RTX)’s Raytheon business reportedly signed an agreement with the UAE’s defense and security acquisitions authority, Tawazun Council, to locally produce the Coyote counter-drone system in the Middle Eastern country.
RTX Corporation (NYSE:RTX) reported impressive results for the first quarter of fiscal 2025, with sales increasing 5% year-over-year, while earnings comfortably beat estimates and were 10% higher than the same period last year. It is one of the best drone stocks to buy.
2. The Boeing Company (NYSE:BA)
Number of Billionaires: 17
Billionaire Holdings: $4,347,891,119
The Boeing Company (NYSE:BA) is a leading aerospace company that boasts an impressive lineup of uncrewed vehicles that operate in the air, across the sea, on the ground, and beyond the Earth’s atmosphere.
According to a report, the Japanese Ministry of Defense concluded a contract with the company in December for the research and development of UAVs that are capable of combat operations in collaboration with manned aircraft. Under the nearly $1 million agreement, The Boeing Company (NYSE:BA)’s Japanese subsidiary will carry out aerial tests for the prospective drones.
Last year, the aerospace giant delivered the first MQ-25 Stingray to the U.S. Navy for testing. This will be the service’s first carrier-based UAV. The unmanned aircraft will provide aerial refueling capabilities to extend the combat range of deployed fighter jets.
The Boeing Company (NYSE:BA) is one of the best drone stocks to buy right now. The company significantly lowered its losses and improved its cash burn during the first quarter of fiscal 2025, while revenue rose 18% year-over-year, in a sign that the company appears to be on track to come through the turbulent times it has faced for the last year and a half.
Wall Street analysts remain bullish on the stock, with a consensus Strong Buy rating. According to Insider Monkey, 17 billionaires hold a stake in The Boeing Company (NYSE:BA), with combined holdings of more than $4.3 billion.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Billionaires: 40
Billionaire Holdings: $33,043,036,466
Amazon.com, Inc. (NASDAQ:AMZN) is an American multinational technology company that engages in e-commerce, online advertising, cloud computing, artificial intelligence, and digital streaming. It has also been making substantial advancements in the drone industry.
In December last year, Amazon Prime Air announced the launch of its most advanced delivery drone. The brand-new MK30 went through a verification process, aerospace design, and regulatory tests, which have doubled its range and is now significantly quieter than any other previous Amazon.com, Inc. (NASDAQ:AMZN) drones.
Amazon.com, Inc. (NASDAQ:AMZN) has set an ambitious goal of 500 million drone deliveries by the end of the decade. In May 2024, it received a critical regulatory approval from the FAA, which allows the company to fly drones for longer distances without requiring ground spotters. This is likely to enable Amazon to accelerate deliveries.
The company is also eyeing expansion in the United Kingdom. On January 28, Amazon.com, Inc. (NASDAQ:AMZN) stated that it was taking steps to begin planning for its initial drone flights from its fulfillment center in Darlington.
On May 1, Amazon.com, Inc. (NASDAQ:AMZN) reported financial results for the first quarter of fiscal 2025. It posted net sales of $155.7 billion, representing a 9% growth from the prior year. Net income stood at $17.1 billion, or $1.59 per diluted share, improving from $10.4 billion, or $0.98 per diluted share, in Q1 2024. While earnings beat Wall Street estimates by 22 cents, the company’s cloud revenue growth and forecast operating income came below estimates.
Overall, AMZN ranks first among the 10 Best Drone Stocks to Buy According to Billionaires. While we acknowledge the potential of drone companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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