Trump Targets Defense Stocks! Who Will Be the Next Intel?

Following its stake in Intel, the U.S. government hints at potentially replicating this approach in the defense industry.

U.S. Secretary of Commerce Gina Raimondo was interviewed by CNBC on the 26th,when asked whether the Trump administration would invest in $Lockheed Martin (LMT.US)$、 $Boeing (BA.US)$ or data analytics companies. $Palantir (PLTR.US)$ Companies engaged in business with the government.

Lutnik quoted officials from the Ministry of Defense responding that they have had extensive discussions regarding equity investments in the defense industry, specifically naming... $Lockheed Martin (LMT.US)$ Most of the revenue comes from the U.S. government, making it virtually indistinguishable from government departments.

This news has also sparked market speculation about who will be the next Intel. How do institutions view the market outlook?The following will analyze these points one by one.

Who will be the next Intel?

Niuniu has compiled some defense stocks in the U.S. stock market for investors' reference:

This includes AI + military industry $Palantir (PLTR.US)$ and major U.S. aerospace and defense companies. $RTX Corp (RTX.US)$ 、

American aerospace manufacturing giant Boeing Company $Boeing (BA.US)$ military industrial giant $Lockheed Martin (LMT.US)$ 、 $General Dynamics (GD.US)$ 、

North American aerospace giant $Northrop Grumman (NOC.US)$ leading producer of commercial and military aerospace components in the United States $TransDigm (TDG.US)$ 、

American Aerospace Company $Howmet Aerospace (HWM.US)$ Taser manufacturer $Axon Enterprise (AXON.US)$ 、

U.S. defense contractor $L3Harris Technologies (LHX.US)$ U.S. aerospace, defense, and electronics supplier $Heico (HEI.US)$ 、

Industrial sensor giant $Teledyne Technologies (TDY.US)$ Supplier of aerospace defense and nuclear equipment $Curtiss-Wright (CW.US)$ 、

U.S. Military Industry$Leidos (LDOS.US)$ 、$Elbit Systems (ESLT.US)$ 、 $Jacobs Engineering (J.US)$ 、 $BWX Technologies (BWXT.US)$ 、 $Textron (TXT.US)$ 、 $Booz Allen Hamilton Holding Corp (BAH.US)$ 、 $AeroVironment (AVAV.US)$ 、 $Kratos Defense & Security Solutions (KTOS.US)$ 、 $Leonardo DRS, Inc. (DRS.US)$ 、 $Huntington Ingalls Industries (HII.US)$ 、 $CACI International (CACI.US)$ 。

Specifically,The most likely scenario at present is $Lockheed Martin (LMT.US)$ , Lutnick described this company as "essentially an extension of the U.S. government."

According to the DefenseNews 2024 rankings, Lockheed Martin is the highest-grossing defense company in the world. Other top American contractors include $RTX Corp (RTX.US)$ ， $Northrop Grumman (NOC.US)$ 、 $General Dynamics (GD.US)$ and $Boeing (BA.US)$ 。

Source: DefenseNews

Previously, reports indicated thatthe Trump administration had $Palantir (PLTR.US)$The business has expanded to various departments of the federal government.Unlike traditional defense contractors such as Boeing and Lockheed Martin, Palantir's core competency is not hardware manufacturing but software capabilities centered on data integration.

Palantir continues to secure high-value contracts with defense and federal agencies,including contracts worth up to $10 billion with the U.S. Army and projects such as Space Force and the Maven Smart System.

What do agencies think?

Industry analysts have warned that the Trump administration's stake in defense contractors could trigger serious conflicts of interest and raised questions about the legality of such actions. Other concerns include:Whether government ownership of defense companies would influence the bidding for Pentagon contracts worth billions of dollars; or whether the government could mitigate potential conflicts of interest by holding stakes in multiple companies.

Becca Wasser, head of defense affairs at Bloomberg Economics, pointed out that this potential transaction could emulate the Pentagon's previous actions under the Defense Production Act.In an unprecedented manner, hold a $400 million equity stake in MP Materials, the sole supplier of rare earth elements in the United States.

However, the rationale behind the Trump administration's interest in acquiring a stake in Lockheed Martin is less clear, especially considering that such actions may further undermine the competitiveness of the industry, which has faced criticism for excessive consolidation over the past few decades.

Jefferies analyst Sheila Kahyaoglu stated: Equity investments could lead to the ultimate conflict of interest. It is not difficult to imagine the first protest arising when a contract is awarded to a major contractor with government shares, rather than to a competitor without government ownership.

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