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RTX Corporation (RTX) Expands UAE Footprint with Gallium Production Project

On May 16, RTX Corporation (NYSE:RTX) announced the signing of a Memorandum of Understanding (MoU) with Tawazun Council and Emirates Global Aluminium (EGA) to develop gallium extraction and refining capabilities at EGA’s alumina refinery in Abu Dhabi.

The initiative is set to make the UAE the second-largest producer of gallium, a critical element used across global supply chains. It is used in the production of electric vehicles, semiconductors, telecom infrastructure, and medical devices. From a defense perspective, gallium is a vital component used in various defense products, including advanced radars.

A factory line of robotic arms assembling gallium nitride Field Effect Transistors (FETs).

This agreement is likely to secure access to gallium for several corporations, including RTX Corporation (NYSE:RTX). Paolo Dal Cin, Senior VP for Operations and Supply Chain at RTX, stated the following at the signing of the MoU:

“The aerospace and defense industry relies on stable access to rare earth elements. Today’s agreement puts us on a path towards a reliable supply of gallium, needed for the production of critical aerospace and defense solutions.”

The move has further expanded RTX Corporation (NYSE:RTX)’s footprint in the UAE, following a recent strategic agreement with the Tawazun Council to produce the Coyote counter-drone system locally in the country.

RTX Corporation (NYSE:RTX)’s shares have surged by 17% year-to-date, on the back of positive recent developments such as these and several high-value defense contract awards.

While we acknowledge the potential of RTX, 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 RTX and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Drone Stocks to Buy According to Billionaires and 11 Best American Defense 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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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

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

How could anything be worth that much?

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Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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