AI Defense Stocks to Buy: Inside Rickards’ Arsenal Report

Rickards references defense AI stocks in his bonus report Trump’s AI Arsenal: How Investing in A.I. Superweapons Could Turn $1,000 into $162,000. He hints at a stock partnered with Elon Musk’s SpaceX to develop something called Star Shield, and another with an AI-powered long-range drone that can take out targets up to 3,000 miles away. The specific tickers are behind the paywall, but the thesis is that defense spending on AI superweapons will accelerate regardless of what happens to the commercial AI bubble.

Rickards is deliberately vague about the specific tickers, which is standard practice in newsletter promotions. The clues he provides are intriguing enough to narrow the field, though. The SpaceX Star Shield partnership suggests a company in the satellite communications or space defense sector. The AI-powered long-range drone with a 3,000-mile range points to a defense contractor in the unmanned aerial vehicle space.

Companies that could fit these descriptions include established defense contractors like Lockheed Martin (LMT), Raytheon (RTX), and Northrop Grumman (NOC), as well as newer entrants like Anduril and Shield AI. However, Rickards may be pointing to smaller, less obvious companies that would offer greater upside potential.

The investment thesis for defense AI stocks is compelling on its own. Global military AI spending is projected to grow significantly over the next decade as nations race to develop autonomous weapons, AI-powered surveillance systems, and cyber warfare capabilities. The U.S. Defense Department’s budget for AI-related programs has been increasing steadily, and initiatives like the Replicator program, which aims to deploy thousands of autonomous systems, are accelerating adoption.

Rickards’ argument is that defense AI is insulated from the commercial AI bubble. Even if companies like OpenAI and Palantir see their valuations collapse, the government will continue spending on defense AI because it is a national security imperative.

Rickards makes the case that defense AI is fundamentally different from commercial AI. He notes that the defense sector has “historically done an outstanding job of delivering value to shareholders” and that it is “a sector that could capture the most value from AI – without any of that AGI hype needed.” He points to AI already being used in the latest Iranian conflict as evidence that military AI is not a future promise but a present reality. The Pentagon and the Department of Defense are integrating AI into their operations, and Rickards says plainly: “The money is flowing.”

The specific investments highlighted in the Trump’s AI Arsenal report include a company partnered with Elon Musk’s SpaceX to develop Star Shield, described as an early warning system for America that is part of Trump’s Golden Dome defense system. The second company has an AI-powered long-range drone that can take out targets up to 3,000 miles away. Rickards calls this “the future of warfare” and frames these investments as the flip side of his bearish commercial AI thesis. Even if OpenAI goes bankrupt and Nvidia collapses, the U.S. government will continue pouring money into AI-powered defense systems because it is a national security imperative, not a profit-driven decision.

The financial contrast between defense AI and commercial AI underscores Rickards’ thesis. While OpenAI is losing more than a billion dollars a month and needs $143 billion in negative cash flow before turning a profit, and while Palantir trades at a P/E ratio of 222, defense contractors operate with established revenue streams and long-term government contracts. The Pentagon’s budget for AI-related programs has been increasing steadily, and initiatives like the Replicator program, which aims to deploy thousands of autonomous systems, are accelerating adoption. Rickards argues that this spending will continue regardless of whether the commercial AI bubble pops, because no administration will cut military AI spending while adversaries like China and Russia are racing to develop their own.

The AI Black Paper presentation promotes Strategic Intelligence, Rickards’ monthly newsletter from Paradigm Press. The price is $49 for 6 months, originally $299, an 83% discount that works out to about $8 per month. The guarantee is 3 months: subscribers can request a full refund for any reason within that window and keep all reports.

The package includes six months of Strategic Intelligence plus six special reports: AI Fallout (the biggest AI losers to remove from your portfolio immediately), The AI Black Paper Blueprint (his personal million-dollar roadmap), AI Meltdown Insurance (how to profit from the coming crash), Trump’s AI Arsenal (how investing in AI superweapons could turn $1,000 into $162,000), The Perfect Physical Gold Portfolio, and How to Make Your Home Your Personal Fortress.

Where to Learn More

For the complete analysis, read our AI Black Paper review covering Jim Rickards’ full thesis on the AI Minsky Moment.

Read our analysis of AI defense stocks for the broader thesis.

Read our guide to portfolio protection strategies for the AI age.

Ready to explore Jim Rickards’ full research? Learn more about Strategic Intelligence here.

This is not financial advice. Always do your own research before investing.