Howmet Aerospace Inc

The AI boom is driving increased demand for turbine blades and vanes used in aircraft engines and gas turbines powering data centers. Four specialized manufacturers—Howmet Aerospace, Precision Castparts, Consolidated Precision Products, and Doncasters Group—dominate Western production, benefiting from high technical barriers, long lead times, and pricing power, though expansion risks include material shortages and past industry downturns.

The fiscal 2027 National Defense Authorization Act allocates $1.15 trillion for U.S. military spending, driven by global conflicts and tensions. Morgan Stanley analysts recommend seven defense stocks, including GE Aerospace, RTX Corp, and Northrop Grumman, citing strong growth potential and government contract stability.