September 11, 2026
A drone maker’s contract wins show how defense spending feeds deficits.
AeroVironment is not a precious metals company. But what happened with its fiscal first-quarter results this week cuts directly to a force that shapes the gold market every day: the scale and direction of U.S. defense spending, and the fiscal pressure it places on a government whose total debt has now passed $40 trillion.
Wall Street quietly buying these stocks before November 3?
We caught Wall Street in the act.
Take a look:
Right here in June…
BlackRock made a strange move.
It put nearly $1 billion into a forgotten-about corner of the AI market.
In fact, we flagged a number of strange transactions from gigantic firms like Goldman Sachs and JPMorgan…
Into two specific stocks in this critical but rarely talked about corner of AI.
I believe these companies are loading up ahead of November 3.
What’s Driving the Market
AeroVironment reported fiscal first-quarter 2027 results on September 9, 2026, pointing to record revenue and funded backlog and highlighting major awards tied to directed energy and counter-UAS systems. The company reported first-quarter revenue of $480.5 million and non-GAAP adjusted earnings of $0.59 per diluted share, with that adjusted EPS up 84% year over year.
The company’s funded backlog reached a record $1.5 billion, up 37% year-over-year and 23% sequentially. The contract wins behind that backlog are worth understanding. Landmark wins included a nearly $464 million Army production contract for the LOCUST directed-energy system under the Enduring High Energy Laser (E-HEL) program, and a sole-source $500 million IDIQ award for the Titan MS RF detect-and-defeat platform in support of Joint Interagency Task Force 401 Domestic Shield, which included an initial $80 million award tied to the United States’ Golden Dome initiative.
The stock initially fell 5.36% to $140.80 on the day of the report, then reversed sharply. AeroVironment shares were up about 11% on Thursday, September 10. JPMorgan Chase raised its target price on AeroVironment from $200 to $210 and reiterated an overweight rating. UBS analyst Gavin Parsons maintained a Neutral rating and raised the price target from $166 to $170.
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The Precious Metals Connection
Here is where gold investors should pay attention. CEO Wahid Nawabi said on the earnings call that the LOCUST directed-energy business could grow into a flagship franchise and could potentially become a more than $500 million-a-year franchise on an accelerated timeline, supported by rising U.S. and international demand and expanded production capacity. Programs of that scale do not appear from thin air. They require sustained federal appropriations.
The structural case for gold rests on a debt load now above $40 trillion, net interest costs that the Congressional Budget Office projects will total about $1.0 trillion in fiscal 2026, and a central bank buying pattern that treats price weakness as opportunity, not warning. Defense expenditure at this pace adds to that fiscal load. The more Washington commits to directed energy, autonomous drones, and counter-UAS systems, the harder it becomes to close the deficit through conventional means. Historically, sustained deficit spending on this scale supports the long-term case for gold as a monetary hedge.
Gold itself is navigating a complicated short-term environment. Spot gold was around $4,350 per ounce on Thursday, September 10, 2026, after falling more than 1% as U.S. producer price data lifted expectations for tighter Fed policy.
5 Nasdaq Stocks Under $5 That Aren’t What You Think
Most stocks under $5 come with a reputation. These don’t.
Each company on this list is tied to major trends like AI, cybersecurity, and next-gen infrastructure.
They may not have the spotlight yet, but they are building real businesses in real markets. That combination is not always easy to find at this price level.
Risks to Monitor
Gold is a monetary policy trade, a central bank diversification trade, and a long-term currency debasement trade. Recent geopolitical risk has not been enough to offset a stronger dollar and higher rate expectations when markets are focused on inflation. That dynamic is active again right now. After August producer price data, markets were pricing close to a 60% probability of a rate hike at the conclusion of the Fed’s September 15 to 16 meeting. A Fed that hikes on September 16 would likely strengthen the dollar and lift real yields, keeping gold under pressure in the near term regardless of how large the Pentagon’s directed-energy budget grows.
The bearish case on AVAV itself is also real. AeroVironment shares are down about 42% year to date. On the call, management said it expects fiscal 2027 free cash flow to be negative due to elevated capital spending tied to facility and capacity expansion. A company burning cash to build capacity is not the same as a company generating it.
Bottom Line
The lesson from AeroVironment’s quarter is not about AVAV stock. It is that the U.S. government is committing to weapons programs with multi-year, multi-billion-dollar cost curves at the same moment its balance sheet is already strained. That spending will need to be financed. Investors often argue that, over time, persistent deficits increase the odds of policies that are supportive for gold. The September Fed meeting will determine where gold trades over the next few weeks. The defense budget will help determine where it trades over the next few years. Those are different questions, and right now precious metals investors need to hold both in mind at once.