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Howmet Aerospace Inc. (HWM) Rides 70% Stock Surge Amid Strong Commercial and Defense Demand

We recently compiled a list of the 12 Best Stocks to Own for Grandchildren. Howmet Aerospace Inc. is one of them.

Howmet Aerospace Inc. (NYSE:HWM), a leading manufacturer of engineered metal products for aircraft engines, airframes, defense systems, and industrial markets, continues to benefit from strong demand across both commercial and defense aerospace sectors. Major clients include Boeing, Airbus, Lockheed Martin, and GE Aerospace.

In Q2 2025, commercial aerospace revenues rose 8% year-over-year, fueled by sustained air travel demand and increased production of more fuel-efficient aircraft. This segment, which makes up over half of HWM’s business, is also seeing growth from airlines extending the life of older fleets, boosting demand for aftermarket parts.

Defense aerospace posted even stronger results, with revenues up 21% in Q2, driven by engine spare orders for programs such as the F-35 and legacy fighters. With the U.S. government approving a $831.5 billion defense budget for 2026, HWM is well-positioned to secure additional contracts and expand its defense-related revenues, which currently represent 17% of total sales.

Howmet Aerospace Inc. (NYSE:HWM) has also been rewarding shareholders, raising its dividend twice in 2025, most recently by 20% to an annualized $0.48 per share, and repurchasing $300 million in stock during the first half of the year. Its buyback program has been expanded to $2.487 billion, reflecting confidence in long-term growth.

HWM’s stock has surged over 70% year-to-date, backed by strong earnings momentum and growing institutional investor interest.

While we acknowledge the risk and potential of HWM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HWM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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