The world of defense technology is heating up, and drone manufacturers are soaring to new heights — none more so than AeroVironment (AVAV). In recent years, this once-under-the-radar defense tech firm has been capturing investor attention, driven by surging demand for its advanced uncrewed aircraft systems (UAS) and loitering munitions. However, AeroVironment’s latest catalyst is even more compelling: a massive defense spending commitment from NATO.
At a recent summit, NATO members pledged to increase defense budgets to 5% of GDP by 2035, up dramatically from the previous 2% target. Defense analysts and investors quickly honed in on the potential winners of this monumental shift. One name stood out: AeroVironment.
