10 Stocks That Will Profit From AI

6. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)

EPS next year: 38.06%

Number of Hedge Fund Holders: 21

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) designs AI-powered autonomous systems and combat drones, placing itself at the forefront of AI-driven military innovation and modernization. Headquartered in San Diego, California, Kratos offers a range of products and services, including directed-energy weapons, unmanned aerial systems, and satellite communications.

In March 2025, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) commenced construction of a $50 million state-of-the-art hypersonic laboratory in Crane, Indiana. This facility is dedicated to advancing hypersonic system payload integration and testing capabilities, underscoring the company’s commitment to cutting-edge defense technologies. The company’s stock has appreciated by approximately 20% year-to-date, with a nearly 80% gain over the past 12 months, which makes it one of the best AI stocks.

Recently, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) successfully launched its second Erinyes hypersonic test vehicle, reinforcing its leadership in hypersonic research.

In March 2025, Kratos was added to the S&P SmallCap index, reflecting its growing market presence. Analysts maintain a positive outlook on the stock, citing its strategic investments in hypersonic technologies and unmanned systems.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) has 13 analyst ratings, with 69% recommending a Buy. The growth estimate for the next year is projected at 43.99%.