The use of drones is becoming more and more prevalent. Would we have ever imagined that we could have drones flying around for our daily lives? In this article, we’ll examine the best drone stocks!
Recent years have seen the growth of drone technology and the expansion of the drone market. In the past, drones were primarily used by the military, but now the technology can be used for commercial purposes as well.
The US Federal Aviation Administration registered 372,000 commercial drones and 500,000 noncommercial drones. Moreover, it is projected that the unmanned aerial vehicle (UAV) market will reach $58.4 billion by 2026.
A drone’s commercial demand is also expected to increase as time goes by. No matter what you do with drones – deliveries or an inspection of the warehouses – the case for investing in drones is that they are capable of becoming a staple in our communities.
Some drone stocks might be of interest to you since they can add value to your investment portfolio. In this article, we bring you the best drone stocks that we believe have long-term potential.
AeroVironment (Nasdaq: AVAV)
Almost any major defense contractor would make a strong case for being one of the top drone stocks. It is primarily Boeing, Raytheon, Lockheed Martin, and others that manufacture drones or invest in drone technology. These are massive corporations, though. As a result, they will most likely make a tiny amount of money from drone production.
AeroVironment is probably your best bet if you’re looking for someone who is strictly a drone stock play.
AeroVironment Inc. (NASDAQ: AVAV) shares are 8.48% up in the year-to-date (YTD) period and have moved up 0.27% or $0.25 higher in the latest trading session. However, the stock’s trailing 12-month performance remains nearly 22.64% higher. The stock is -13.87% down in the 6-month period and moved -10.21% over the trailing 3-month period. If we look at the shorter duration, its week performance is up 6.42% and 10.57% over the month.
Nvidia (Nasdaq: NVDA)
According to its website, Nividia is the world leader in artificial intelligence computing. Among its many products are graphics processors and computer chips used in a wide range of industries. Which industries use their chips? The drone industry.
Aerialtronics is among the main companies that use Nvidia’s technology. In addition to making advanced commercial drones, aerialtronics also inspect power lines and wind turbines (among other things). These drones are powered by Nvidia’s Jetson technology. Jetson enables drones to understand and respond to their environment by utilizing deep learning algorithms.
NVDA’s performance over the past year has seen it surge by 116.04%, while the stock has gone up by 101.19% in the last six months. The quarterly performance of NVDA currently stands at 46.33%, and it is up by 43.97% in the last month. The weekly performance currently reads 19.49%.