AI Chips Update - AI Drones Propel Global Defense Market Growth

The U.S. government's escalating investment in defense contracts for drones and artificial intelligence is set to propel the global military drone market towards a projected valuation of $47 billion by 2032. This growth is driven by a recent $33 billion allocation for unmanned systems and AI initiatives, with $16 billion specifically earmarked for AI projects across governmental sectors. The integration of AI with military drones is enhancing autonomous functionalities, which includes improved flight capabilities and mission planning. As countries increase their defense budgets to procure technologically advanced drones, this alignment with AI promises to modernize capabilities and reinforce strategic advancements in defense operations globally.

In other market news, Nanya Technology (TWSE:2408) was a notable mover up 9.6% and ending the day at NT$104.00, not far from its 52-week high. At the same time, Rigetti Computing (NasdaqCM:RGTI) softened, down 14.9% to close at $47.97.

With Nanya Technology ramping up its advanced DRAM innovations to capitalize on AI demand, investors should explore the potential impacts of geopolitical tensions and production costs on its growth narrative. Click here to delve into the full story on Nanya Technology's strategic maneuvers and future prospects.

For a deeper understanding, check out our Market Insights article, analyzing AI chip investment opportunities amid the rapidly evolving tech landscape—get in fast!

Best AI Chip Stocks

• NVIDIA (NasdaqGS:NVDA) closed at $181.81 up 1.1%. On Wednesday, NVIDIA announced the launch of DGX Spark, a personal AI supercomputer developed with MediaTek, aimed at revolutionizing AI development.
• ASML Holding (ENXTAM:ASML) ended the day at €877.40 up 0.5%, hovering around its 52-week high. Three days ago, the company reported strong Q3 earnings with increased revenue and net income compared to the previous year.
• Advanced Micro Devices (NasdaqGS:AMD) settled at $234.56 down 1.7%, not far from its 52-week high. Three days ago, AMD showcased its new 'Helios' rack-scale platform, extending its AI infrastructure capabilities, while announcing with Oracle an expansion to scale AI superclusters using AMD Instinct MI450 GPUs.

Seize The Opportunity

• Click this link to deep-dive into the 75 companies within our AI Chip Stocks screener including Lam Research, Unigroup Guoxin Microelectronics and Nexchip Semiconductor.
• Ready For A Different Approach? These 11 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Sources:

• Simply Wall St
• "U.S. Government's Spending on Defense Contracts for Drones Leading to a Projected $47 Billion Market By 2032" from MarketNewsUpdates.com on GlobeNewswire (published 16 October 2025)

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