Are defence stocks the new big tech?

Investors think defence stocks offer the greatest opportunities for growth. Which are the key players?

Warship and fighter jets at sunset
(Image credit: Anton Petrus via Getty Images)

Defence stocks seem to be displacing US big tech as investors’ number one hope for growth, according to new research.

Rolls-Royce (LON:RR.) topped the list of top stocks on Interactive Investor’s platform during June, and BAE Systems (LON:BA.) came in at number five. We could see even more defence stocks join these companies going forward as investors look to defence to deliver the kind of growth they’re used to seeing from big tech.

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IG Client Sentiment Tracker: the three sectors retail investors expect to see the most growth in the next six months
Header Cell - Column 0

UK investors’ top three sectors now

Six months ago

1 year ago

18 months ago

#1

Defence and military (55%)

AI-related industries (40%)

Semiconductors equipment (36%)

Energy (28%)

#2

AI-related industries (45%)

Defence and military (37%)

Technology hardware and equipment (32%)

Technology hardware and equipment (24%)

#3

Semiconductors equipment (29%)

Semiconductors equipment (29%)

Software and services (27%)

Software and services (23%)

Dan McEvoy
Senior Writer

Dan is a financial journalist who, prior to joining MoneyWeek, spent five years writing for OPTO, an investment magazine focused on growth and technology stocks, ETFs and thematic investing.

Before becoming a writer, Dan spent six years working in talent acquisition in the tech sector, including for credit scoring start-up ClearScore where he first developed an interest in personal finance.

Dan studied Social Anthropology and Management at Sidney Sussex College and the Judge Business School, Cambridge University. Outside finance, he also enjoys travel writing, and has edited two published travel books.