Jim Cramer’s Hottest Defense Technology Stock Picks: Top 5 Stocks

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1. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)

Number of Hedge Fund Holdings in Q3 2024: 20

Number of Hedge Fund Holdings in Q4 2025: 41

Performance Since Cramer’s Remarks: 185%

Date/Month of Cramer’s Remarks: January 10th, 2025

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) provides drone, satellites, satellite communication, and other products and services to the defense sector. Its shares are up by 138% over the past year and by 185% since Cramer discussed the firm on Mad Money. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) started January 2026 on a strong note. Its shares closed 13.9% higher on the 8th after President Trump remarked that the US defense budget should be increased to $1.5 trillion. Then, the shares closed 9.3% higher the next day after B. Riley and Truist hiked the share price target. B. Riley increased Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s share price target to $128 while Truist hiked it to $135. However, the stock closed 6.5% lower on February 27th after the firm announced a $1 billion equity offering. With Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s stock being significantly higher since his remarks, here’s what Cramer said about the firm in January 2025:

“Modern military, modern defense, I like the story very much. I think you’re in good shape.”

While we acknowledge the potential of KTOS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KTOS and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

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