In recent years, global geopolitical tensions have continued to escalate, from the Russia-Ukraine conflict to the Israel-Palestine war, with countries' military spending constantly rising. Against this backdrop, the defense industry has gradually become a focus of investor attention. But which defense stocks are worth investing in? How can risks be avoided? This article will analyze the investment potential of American arms manufacturers and the development prospects of Taiwan's defense stocks.
Why are defense stocks worth paying attention to?
The investment logic of defense stocks is relatively clear. As countries' military expenditures increase year after year, technological warfare has become mainstream, with demand for new weapon systems such as drones, precision missiles, and information warfare surging. Rather than saying defense stocks benefit from war, it is more accurate to say they benefit from a global awakening of security awareness.
From a macro perspective, the defense industry has three major investment characteristics: First, the sector is extremely stable, with conflicts and military demand never fading; second, it has a deep moat, with high technical barriers, a stable customer base, and extremely high entry thresholds; third, growth momentum