Palantir Technologies Soars While New Contenders Emerge in Tech Defense

Over the past year, Palantir Technologies (NASDAQ: PLTR) has made headlines with its remarkable growth. Shares have surged by an impressive 368%, significantly outperforming the S&P 500 and AI industry leader, Nvidia. However, trading at 208 times forward earnings raises questions about whether its growth can continue.

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PLTR data by YCharts

Several emerging tech defense companies are generating buzz in this niche market. Although their success is not guaranteed, these contenders may be worth considering for investors interested in tech defense. Let’s explore what makes each of them noteworthy.

Image Source: Getty Images.

BlackSky Technology: A New Force in Space Intelligence

BlackSky Technology (NYSE: BKSY) has gained traction in the tech defense arena with shares up approximately 40% over the last year. Specializing in real-time space-based intelligence, the company utilizes AI to provide actionable insights from satellite images in less than 90 minutes.

Its proprietary Spectra platform merges high-frequency satellite monitoring with automated AI analytics, making it a competitor to Palantir. BlackSky has landed multiyear contracts worth up to $2.3 billion with various U.S. and international agencies, affirming the credibility of its technology.

Currently valued at 2.86 times trailing sales, BlackSky’s stock is relatively affordable compared to other tech defense stocks. Analysts estimate a promising 25.8% revenue growth for 2025, coupled with improving profitability, making BlackSky a noteworthy player in the industry.

Redwire: Leading the Charge in Space Infrastructure

Redwire (NYSE: RDW) has recorded a stunning 690% surge in shares over the last year, surpassing even Palantir’s impressive gains. As a key provider of space infrastructure, Redwire employs AI and advanced manufacturing to deliver vital components for various missions.

Redwire’s edge lies in its broad array of space technologies, including power generation and specialized microgravity payloads. The company has established partnerships with major players like NASA and SpaceX, showcasing the versatility of its technology in high-growth markets.

Trading at 5.2 times trailing sales, Redwire carries a premium valuation, reflecting its strong market posture and growth potential. With a robust contract pipeline of approximately $6.9 billion, Redwire appears poised for continued success in the fast-changing space sector.

Archer Aviation: Innovating in Urban Air Mobility

Archer Aviation (NYSE: ACHR) has gained attention in tech defense, with shares climbing 90% over the past year. Known for its electric vertical takeoff and landing (eVTOL) aircraft, Archer is shifting towards defense through its newly formed Archer Defense division.

A strategic partnership with Anduril Industries connects Archer with innovative tech defense solutions, aimed at developing hybrid VTOL aircraft for the Department of Defense. This collaboration combines Archer’s rapid development capabilities with Anduril’s expertise in AI.

At the beginning of 2025, Archer secured an additional $300 million in funding from institutional investors, including BlackRock, bringing its available capital to around $1 billion. This financial strength, along with support from partners like Stellantis and United Airlines, positions Archer to seize new defense opportunities that are anticipated to be “beyond initial expectations.”

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George Budwell has positions in Archer Aviation, BlackRock, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.