America is entering a new era of rearmament.
President Trump has called for $1.5 trillion of defense spending in fiscal year 2027, a dramatic increase from just two years ago. Meanwhile, the wars in Ukraine and the Middle East have exposed serious weaknesses in the West’s ability to produce enough weapons, ammunition, missiles, and military equipment during periods of conflict.
As a result, investors have become increasingly interested in the companies that sit at the heart of America’s defense industrial base.
But who are they?
And how did just five giant corporations come to dominate so much of America’s military-industrial complex?
The latest Macro Watch video examines the five traditional defense giants that now stand at the center of US military power:
• Lockheed Martin
• RTX
• Northrop Grumman
• General Dynamics
• Boeing
This video explains how the defense industry was transformed after the Cold War, why these companies became so dominant, and why they are likely to remain central to America’s rearmament for many years to come.
However, the most surprising conclusion may be that despite their enormous importance to national security, these companies are no longer among America’s most powerful corporations.
In fact, the combined market value of all five traditional defense giants is only a fraction of the value of America’s largest technology companies. Even more strikingly, Big Tech is now investing vastly more money each year than the entire traditional defense industry.
What does that mean for investors?
Could the biggest beneficiaries of the coming defense boom turn out to be companies that aren’t traditional defense contractors at all?
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