We recently published a list of Why These Defense Stocks Are Gaining This Week. In this article, we are going to take a look at where Archer Aviation Inc. (NYSE:ACHR) stands against other defense stocks that are gaining this week.
On Friday, President Trump unveiled a new next-generation fighter jet, the F-47. According to media reports, the name signifies Trump’s return to the White House as the 47th President of the United States.
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The F-47, which is planned to replace the F-22, will be for air superiority and have stealth and penetration capabilities that exceed those of the current fleet. Defense experts believe that manned fighters will be crucial in any potential future conflict with China and other foes. USAF General David Allvin has described the F-47 as the ‘crown jewel’ of future air dominance systems.
The initial contract to proceed with the production is expected to cost approximately $20 billion. This is a welcome development for America’s defense sector, which has wobbled this year amid mixed statements from the Trump administration on the future of military expenditure in the country.
The move adds to the positive momentum after President Trump’s recent announcement to resurrect America’s military and commercial shipbuilding industry, which he sees as vital to national security, given the strategic competition with China.
Elsewhere, particularly in Europe, defense stocks have soared this year, with European capitals unlocking billions to supercharge their militaries. The United States has repeatedly called for Europe to spend more on defense while stressing that Washington could no longer foot the bill.
EU leaders met in Brussels earlier in March to discuss the ‘ReArm Europe Plan’, which will allow the bloc to mobilize funds up to $860 million through bonds and relaxed rules on borrowing and spending. Last week, the German parliament voted in favor of a historic fiscal package, which includes reforms to long-standing debt policies to allow for higher defense spending.
Several Asian contractors are also benefiting from Europe’s defense splurge. A leading aerospace and defense company in South Korea has gained over 92% year-to-date, driven by demand for weapons from NATO countries like Poland and Romania. On March 20, The Economic Times reported a 20% increase in India’s defense and shipbuilding stocks in response to Germany’s big military plans.
With that said, let’s now head over to the list of defense stocks that are gaining this week. Please note that the stocks listed are based on one week’s performance. Our analysis does not reflect the companies’ prospects, and their share price could go high or low in the future, depending on external market conditions, industry-specific challenges, and the company’s capabilities. Additional research and caution are advised before making investment decisions.
A technician assembling an electric aircraft, highlighting the company’s manufacturing capabilities.
Methodology
For this article, we went through screeners to see how stocks in the aerospace and defense industry performed over the past week (March 17-24). From there, we picked the top 10 stocks with the highest percentage gains in share price during this period. All data is as of the close of business on Monday, March 24, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Archer Aviation Inc. (NYSE:ACHR)
Weekly Gains: 7.46%
Archer Aviation Inc. (NYSE:ACHR) is an aerospace company that is engaged in developing eVTOL aircraft. It is also working on a hybrid aircraft platform for the defense market.
The stock has continued its rally following the announcement of a strategic partnership earlier this month between Archer Aviation Inc. (NYSE:ACHR) and Palantir Technologies to build the next-gen aviation software that utilizes artificial intelligence to improve air traffic control, route planning, and movement control.
Shares jumped 7.46% over the past week to close at $8.93 per share on Monday, March 24. Analysts believe the deal is likely to bolster Archer Aviation Inc. (NYSE:ACHR)’s footprint in the industry and attract interest from young investors looking for aviation stocks that deploy AI.
Overall, ACHR ranks 5th among the defense stocks that are gaining this week. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ACHR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
