These Are the Best Military AI Stocks To Buy Today That Are Not Named Palantir

When investors think of military-oriented artificial intelligence (AI) stocks, Palantir Technologies (NASDAQ: PLTR) often comes to mind. Given the company's role in finding Osama bin Laden and its use of AI to deliver analytical insights, one can hardly blame them.

Palantir's 215 P/E ratio makes it difficult for investors to build a bull case for the stock. But these investors should know that it's not the only defense-related tech stock tied to AI. As conflicts crop up around the world (including the current war with Iran), these three stocks could benefit as the military increasingly seeks the benefits of AI.

Image source: Getty Images.

Nvidia

Nvidia (NASDAQ: NVDA) remains popular for its dominance of the AI accelerator market. Still, for all of the applications investors tend to cite, the defense-related uses of the technology rarely enter the discussion.

However, military applications are in fact a focus for Nvidia. For one, the company equipped the U.S. Naval Postgraduate School with a DGX GB300 system. With that, the Navy has researched AI in operations, robotics, and ocean research.

Moreover, the Department of Defense uses the company's AI for logistics, planning, data analysis, and the training of autonomous vehicles, including fighter jets. Additionally, foreign militaries have even leveraged Nvidia's AI, leading to increased scrutiny of the technology and export restrictions.

All this bolsters the bull case for Nvidia. Its net income increased by 65% in fiscal 2026 (ended Jan. 25), and despite a $4.6 trillion market cap, it remains on a path for rapid growth.

Such market caps often deter growth investors, even though its 39 P/E ratio is reasonable considering its growth rate. Hence, even if the high market cap forces its earnings multiple downward, Nvidia is on track to continue delivering market-beating growth, and its military applications should give investors yet another reason to buy the stock.

Microsoft

Microsoft's (NASDAQ: MSFT) cloud has received relatively little attention for defense-related applications in recent years. However, its Azure Government platform is among the ways Microsoft is making money from AI.

Azure is also one of the few authorized cloud providers under the Joint Warfighting Cloud Capability (JWCC). Through this, applications like Azure Arc can manage hybrid environments ranging from data centers down to tanks in the field. Also, products like Microsoft Mesh can perform tasks such as mission planning or hardware repair.

Offerings such as digital twins allow for battlefield simulation and training. Additionally, Microsoft can enable data sharing by managing protected permissions through its zero-trust security architecture.

In the previous four quarters, Microsoft reported net income of over $119 billion, a 29% yearly increase, though at a market cap of $2.9 trillion, it faces some of the same size-related challenges as Nvidia.

Still, its 24 P/E ratio is close to a multiyear low. That suggests that, as the market becomes more aware of the company's role in military applications, owning Microsoft stock could make investors feel safer in these uncertain times.

Palo Alto Networks

Investors tend to view Palo Alto Networks (NASDAQ: PANW) as a more general cybersecurity company given its multiple security suites. While government-related products do not receive as much attention as the Next-Generation Firewall or Prisma Cloud, such products play critical roles in defense. That includes solutions from CyberArk, the Israel-based cybersecurity company it recently acquired.

One of the products is its Golden Dome, a zero-trust solution that integrates satellites, interceptors, radars, and tactical systems into one unified defense solution. Other offerings include FedRAMP High, which secures government clouds that require the highest level of security. Additionally, Palo Alto designed its solutions to work on-site and in the cloud, making them well-suited for both central headquarters and the battlefield.

Thanks in part to such products, operating income rose by 50% over the trailing 12 months. The net income over that time frame was $1.3 billion, though profits did not change significantly due to a boost from a one-time income tax benefit in the previous fiscal year.

Other financial metrics of note include the $133 billion market cap, which makes Palo Alto smaller than many of its military AI counterparts. Also, while its P/E ratio of 90 makes it appear expensive, its forward P/E of 44 suggests the valuation is more reasonable.

Ultimately, between its established government relationships and rising income from operations, Palo Alto stock could rise if the conflict continues to escalate.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.