Why Huntington Ingalls (HII) Just Made A Forward-Looking Move

With a sound forward P/E ratio of 17.67, Huntington Ingalls Industries, Inc. (NYSE:HII) is among the 10 Most Undervalued Defense Stocks to Buy According to Analysts.

Huntington Ingalls Industries, Inc. (NYSE:HII) entered into a memorandum of understanding with Applied Intuition on April 21 to collaborate on the development of AI-enabled capabilities for next-generation naval platforms. The partnership focuses on advancing “Warship OS,” enabling AI-defined warships designed to support autonomous and manned-unmanned teaming operations, reflecting a broader push toward software-defined naval systems.

On the same day, Huntington Ingalls Industries, Inc. (NYSE:HII) announced plans to expand production of its Romulus 151 unmanned vessels, with four additional units to be built in Louisiana alongside an initial prototype already under construction. Management emphasized that the program reflects a shift toward scalable unmanned maritime capability, combining autonomy, shipbuilding expertise, and industry partnerships to accelerate fleet deployment.

Huntington Ingalls Industries, Inc. (NYSE:HII) is a leading U.S. naval shipbuilder specializing in the design, construction, and maintenance of nuclear-powered aircraft carriers and submarines, as well as surface combatants for the U.S. Navy and Coast Guard. The company is headquartered in Newport News, Virginia, and was formed in 2011.

The collaboration with Applied Intuition and the expansion of unmanned vessel production highlight HII’s strategic pivot toward AI-integrated naval warfare capabilities. These initiatives strengthen its long-term positioning in next-generation defense systems, where autonomy and rapid deployment are becoming increasingly critical.

While we acknowledge the risk and potential of HII 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 HII and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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