U.S. drone stocks soar amid Trump administration talks

President Donald Trump’s administration is preparing to deepen its ties with corporate America by way of talks with several prominent drone companies.

Specifically, Washington is allegedly looking to invest in Unusual Machines Inc (NYSEAMERICAN: UMAC), and the privately-owned and Sequoia-backed firm called Neros, per a May 27 Wall Street Journal report.

The latest developments come on the back of previous reports that developing drone capabilities is a priority for the proposed $1.5 trillion in defense spending – a decision likely driven by the experience from the previous stage of the Iran war, but also years of warfare in Ukraine.

UMAC stock rallied a substantial 28.52% in the May 28 pre-market from its latest closing price of $18.83 to $24.20.

Additionally, though not named as explicitly as Unusual Machines and Neros, other American drone companies, including Kratos (NASDAQ: KTOS), Swarmer (NASDAQ: SWMR), AeroVironment (NASDAQ: AVAV), and Red Cat Holdings (NASDAQ: RCAT), also enjoyed strong extended session performance.

Why U.S. drone stocks are likely to see long-term tailwinds from the possible investments

Elsewhere, another prominent example of President Donald Trump’s efforts to boost domestic capability hints that the latest rallies for the considered drone companies are but the beginning.

For example, the previously-troubled semiconductor giant Intel (NASDAQ: INTC) saw a complete reversal of fortunes after Washington invested nearly $9 billion during the summer of 2025 as part of its work to compete with China and reduce reliance on Taiwanese foundries.

INTC stock fell roughly 70% between 2021 and mid-2025 but is up a remarkable 500% since then and soared 209.22% year-to-date (YTD) to $121.77.

Lastly, the rest of 2026 is likely to see additional and more expansive investments in the military-industrial complex, both due to President Trump’s proposed $1.5 trillion defense budget and earlier developments in the year aimed at significantly expanding on-shore production.

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