Tech defense juggernaut Palantir Technologies (PLTR +1.17%) has been a tour de force over the past 12 months. The company's shares have skyrocketed by a staggering 368% during this period, outpacing both the benchmark S&P 500 and artificial intelligence (AI) titan Nvidia. While Palantir's growth story may be far from over, its shares currently trade at an astronomical 208 times forward earnings, making it one of the most richly valued stocks in today's market.
Fortunately, several emerging tech defense companies show promise in this specialized subsector. While there's no guarantee these three names will match Palantir's remarkable performance, investors focused on tech defense may want to keep these promising contenders on their radar. Let's examine what makes each one stand out.
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A rising star in space-based intelligence
BlackSky Technology (BKSY +1.57%) has emerged as an intriguing player in the tech defense space, with its shares climbing roughly 40% over the past 12 months. The company specializes in real-time space-based intelligence, leveraging AI to deliver actionable insights from satellite imagery in under 90 minutes on average.
NYSE: BKSY
Key Data Points
BlackSky's proprietary Spectra platform combines high-frequency satellite monitoring with automated AI-powered analytics, positioning it as a direct competitor to Palantir in the intelligence-gathering space. The company has secured multiyear contracts valued at up to $2.3 billion with various U.S. and international government agencies, demonstrating strong market validation of its technology.
At 2.86 times trailing sales, BlackSky stock trades at a relatively modest valuation in comparison with its tech defense peers. This is particularly noteworthy given that Wall Street analysts forecast robust 25.8% top-line growth for 2025. The company's improving profitability metrics further strengthen its investment case as an emerging force in the space-based intelligence market.
A breakout performer in space infrastructure
Redwire (RDW 0.36%) has been a standout performer in the tech defense subsector, with shares surging an eye-catching 690% over the past 12 months, outpacing even Palantir's impressive gains. As a critical provider of space infrastructure, the company leverages AI and advanced manufacturing capabilities to deliver essential components for civil, commercial, and national security missions.
NYSE: RDW
Key Data Points
Redwire's competitive advantage stems from its comprehensive suite of space technologies, including power generation systems, structures and mechanisms, and specialized microgravity payloads. The company has secured partnerships with marquee customers including NASA, SpaceX, and cutting-edge pharmaceutical companies, demonstrating the broad applicability of its technology across multiple high-growth markets.
At 5.2 times trailing sales, Redwire stock commands a premium valuation in comparison with the broader field of tech defense equities, but the premium reflects the company's strong market position, proven execution in a high-risk industry, and attractive growth trajectory. With a robust contract pipeline of approximately $6.9 billion and improving profitability metrics, Redwire appears well equipped to maintain its momentum in the rapidly evolving space domain.
A defense-focused shift in urban air mobility
Archer Aviation (ACHR +1.49%) has gained significant momentum in the tech defense subsector, with shares climbing 90% over the past 12 months. While initially known for its commercial electric vertical takeoff and landing (eVTOL) aircraft, Archer has made a strategic pivot toward defense applications through its newly launched Archer Defense division.
NYSE: ACHR
Key Data Points
The company's exclusive partnership with privately held tech defense powerhouse Anduril Industries offers investors indirect exposure to one of the most innovative players in autonomous systems and AI-powered defense solutions. This collaboration aims to develop hybrid VTOL aircraft for the Department of Defense, leveraging Archer's rapid aircraft development capabilities and Anduril's expertise in AI and systems integration.
At the start of 2025, Archer raised an additional $300 million from institutional investors including BlackRock, bringing its total liquidity to approximately $1 billion. This robust capital position, combined with backing from major strategic partners including Stellantis and United Airlines, positions Archer to capitalize on what management describes as defense opportunities that are "substantially larger than originally expected."
