RJ Hamster
Must Read: The New Weapon Changing Warfare (and Markets)
The New Weapon Changing Warfare (and Markets)
The situation in the Middle East remains fluid.
Headlines can swing from escalation to calm and back again in just a few days.
But one thing is already clear: Warfare is changing.
Not with bigger weapons or larger armies. But with faster, cheaper and smarter technology.
Right now, that shift is changing how wars are fought. It is also creating a new wave of investment opportunities.
In today’s Market 360 issue, I want to look at this major shift in modern warfare, how AI is pushing it further and tell you about one of my favorite companies that stand to benefit.
The Technology Taking Center Stage
What we’re seeing now brings a major shift in warfare into focus.
It’s a shift driven by speed, cost and scalability – not old-school military power.
In fact, some of today’s most effective battlefield weapons are not the most advanced or expensive. They are the simplest.
They’re being deployed in large numbers, often in coordinated waves, designed to overwhelm even the most sophisticated defense systems.
I’m talking about drones.
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In its attacks on Iran, the United States has used low-cost, one-way attack drones in combat for the first time.
The system is called LUCAS, short for Low-cost Unmanned Combat Attack System. It is an autonomous attack drone used to hit IRGC command centers, air defenses, missile and drone launch sites, and military airfields.
It is 10 feet long with an 8-foot wingspan. It can travel about 500 miles, stay over a target for up to six hours and carry a 40-pound payload.
The LUCAS was developed by the Arizona-based company SpektreWorks.
Here’s a picture of a test launch, which took place in the Persian Gulf on December 16, 2025, from the USS Santa Barbara.
Total cost: about $35,000.
Compare that with a Tomahawk cruise missile, which costs about $2 million, or a Reaper drone, which costs about $30 million. By contrast, LUCAS looks like a game-changer for U.S. defense doctrine.
Interestingly, it was reverse-engineered from Iran’s own Shahed-136 drones, which have been used extensively by Russia on battlefields in Ukraine.
Meanwhile, Iran has launched hundreds of Shahed drones of its own to overwhelm air defenses and attack U.S. bases and Middle Eastern partners and allies.
The point is simple: Drone warfare is becoming the new norm.
The Real Arms Race Is Just Beginning
Now, before we go any further, let’s address a really basic question:
Why drones?
The answer comes down to one thing: Drones are cheap.
According to estimates by the Center for Strategic and International Studies, one Shahed drone costs between $20,000 and $50,000. In comparison, one Patriot interceptor, used by the U.S. to destroy incoming drones, costs $4 million.
From a military standpoint, spending $30,000 to make your enemy spend $4 million is a very good trade. It’s what the experts would call an “asymmetry” – a huge imbalance.
Your opponent must either spend a fortune to defend itself or adapt fast.
From the U.S. side of the coin, we’ve finally been able to do just that.
And as drones grow cheaper, they become far more accessible.
But cost is only part of the story.
These systems are also becoming more autonomous and more AI-driven. They can process data in real time, navigate tough terrain and operate with little human help.
That means they are easier to deploy, easier to scale and far easier to weaponize.
It also means advanced militaries no longer have the edge to themselves.
Insurgent groups in Africa now use drones in routine operations. Drug cartels south of the U.S. border use them for surveillance and smuggling. Both are learning from war zones like Ukraine, where drone tactics and AI targeting have improved fast.
In other words, AI is transforming drones into intelligent weapons that anyone can use.
But it doesn’t stop there.
As drones become more widespread, defense systems must also become smarter – using AI to detect, track and neutralize threats in real time.
That means governments will likely increase spending on counter-drone and AI-driven defense systems.
And companies at the center of this shift stand to benefit.
We’re Already Seeing the Winners
The real opportunity here isn’t just understanding this shift – it’s knowing which companies stand to benefit.
And as this trend accelerates, certain companies are already emerging as clear winners.
One of the clearest examples is Elbit Systems Ltd. (ESLT).
Elbit is an Israeli defense contractor sitting right at the center of this shift. It develops advanced drone systems, AI-driven surveillance platforms and integrated battlefield technology.
This company is built for the future of warfare, where smart machines gather intelligence, monitor threats and operate in high-risk settings with little human input.
Elbit has developed a range of unmanned aircraft for reconnaissance and surveillance. These systems are built for long missions, strong data collection and more autonomous operation.
At the same time, it is linking drones, sensors and command networks in real time to improve battlefield decisions.
In other words, Elbit isn’t just building drones.
It’s helping build the infrastructure of modern AI-driven warfare.
When we added Elbit to the Growth Investor Buy List at the end of April last year, the market hadn’t fully caught on to this shift. Since then, the stock has taken off, rallying roughly 123%.
That is what happens when you spot a major trend early and buy the companies leading it.
And luckily, this trend is far from over.
As governments ramp up spending on AI-driven defense systems and counter-drone technologies, companies like Elbit are likely to remain in high demand.
Where to Find the Next Winners
I bring this up because finding a powerful trend with a long runway can make you a lot of money.
And drones are just one example.
The fact is I’m tracking and recommending stocks across multiple sectors that are benefiting from mega shifts just like this one… from artificial intelligence to energy to emerging technologies.
So, how do I find them?
I rely on a proven, data-driven system that cuts through the noise and identifies fundamentally superior stocks with the strongest growth potential.
That same approach is the backbone of my Growth Investor service.
Right now, my Growth Investor stocks are showing 37.3% average annual sales growth and 144% average annual earnings growth.
That tells me one thing: These companies are not just riding major trends. They are leading them.
In fact, I expect my Growth Investor stocks to resurge by 20% or more in the coming months, driven by their spectacular fundamentals and in the wake of stunning quarterly results.
So, if you want to see my top recommendations and get positioned in the kinds of stocks that can outperform in any market environment, I encourage you to take a closer look at Growth Investortoday.
Sincerely,
Louis Navellier
Editor, Market360
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Elbit Systems Ltd. (ESLT)
