Defense Is Europe’s New Big Tech Sector After Stellar Rally
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The sharp rally in Europe’s defense shares echoes the hype seen in previous bubbles like tech. Investors are willing to fork up to take a gamble on the sector, anticipating a massive ramp up in military spending.
Six out of the top 10 performing stocks in the Stoxx 600 this year are defense firms, while a Goldman Sachs Group Inc. basket for the industry has surged over 60% in 2025. Appetite for the likes of Rheinmetall AG, Thales SA and Leonardo SpA is showing no sign of abating as European leaders pledge spending commitments to support Ukraine.