How AIRO, AVAV, and Others Are Reshaping Your Stock Watchlist
Drone technology is soaring to new heights in 2025. Once limited to niche military or hobbyist use, drones are now becoming essential across a wide range of sectors -- from defense and public safety to agriculture, logistics, and infrastructure inspection. Global demand is accelerating, and so is investor interest. One telling sign? New drone-focused IPOs like AIRO Group Holdings, Inc. (NYSE: AIRO) have entered the market with impressive momentum.
In China alone, more than 2.2 million drones are currently registered, and the country is positioning the drone industry as a pillar of its “low-altitude economy,” which could reach approximately $490 billion by 2035. Meanwhile, in the U.S., the combination of geopolitical tensions and favorable policy support is catalyzing a new era of drone innovation and commercialization.
Notable NYSE- and NASDAQ-Listed Drone Stocks
Here’s a current list of notable drone-related stocks trading on U.S. exchanges. If you're building a stock watchlist, these are some of the best drone stocks to keep an eye on:
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AeroVironment Inc (NASDAQ: AVAV)
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Kratos Defense & Security Solutions Inc (NASDAQ: KTOS)
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Draganfly Inc (NASDAQ: DPRO)
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Ondas Holdings Inc (NASDAQ: ONDS)
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EHang Holdings Ltd (NASDAQ: EH)
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Red Cat Holdings Inc (NASDAQ: RCAT)
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AIRO Group Holdings Inc (NYSE: AIRO)
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L3Harris Technologies Inc (NYSE: LHX)
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Cohu Inc (NASDAQ: COHU)
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Palantir Technologies Inc (NYSE: PLTR) – partial exposure
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Axon Enterprise Inc (NASDAQ: AXON) – partial exposure
Top Performers in 2025
AIRO Group (NYSE: AIRO) has been the standout performer in 2025 so far. The company, which went public on June 13, saw shares jump approximately 140% on its first day of trading. This surge is attributed to investor excitement around AIRO’s military-grade autonomous drones and its role in defense tech solutions amid global conflict zones.
AeroVironment (NASDAQ: AVAV) has also experienced a resurgence, rebounding from earlier-year lows thanks to demand for its tactical drones like the Switchblade, widely used in Ukraine. Positive forecasts for upcoming quarters have further supported its stock.
Kratos Defense (NASDAQ: KTOS) continues to perform steadily, benefiting from U.S. defense contracts. Its jet-powered Valkyrie drone, developed under the loyal wingman program, showcases the cutting-edge of unmanned aerial combat.
Ondas Holdings (NASDAQ: ONDS) has shown promising growth due to strategic partnerships with AI firms like Palantir. These collaborations aim to bring advanced autonomy and data collection to industrial drone operations.
Why the Momentum?
Several key factors are fueling the momentum in the drone sector. Geopolitical conflicts have significantly increased global military spending, with drones playing a central role in modern warfare strategies. Beyond defense, the commercial expansion of drones is also a major driver. They are increasingly used in diverse applications such as crop spraying, bridge inspections, traffic monitoring, and even last-mile delivery services, demonstrating their versatility and efficiency.
Regulatory support has further strengthened the sector, especially in the U.S., where executive orders and evolving FAA guidelines are creating an environment conducive to drone integration in both urban and rural settings. Finally, ongoing technological innovation is transforming drones into intelligent, scalable systems. Advances in artificial intelligence, LiDAR sensing, and 5G connectivity are enhancing drone autonomy, data processing capabilities, and operational range, making them more attractive for large-scale deployment.
Outlook for the Drone Sector
The global drone market is expected to grow at a compound annual growth rate (CAGR) of 14.3% from 2025 to 2030, with the commercial drone market expanding at over 20% CAGR through 2032. Analysts predict that companies with diversified offerings—spanning military, industrial, and software integration—will be best positioned to capture sustained market share.
While risks remain—including regulatory bottlenecks, international competition, and technological obsolescence—the drone sector is clearly on a long-term upward trajectory. With growing demand, new listings, and massive market projections, drone stocks are firmly on investor radar for 2025 and beyond. For investors looking to expand their stock watchlist with high-growth potential, the best drone stocks offer both innovation and resilience.