Defense Stocks Rise As Trump Team Considers Buying Into Major Contractors

Commerce Secretary Howard Lutnick said Tuesday that the Trump administration may consider taking ownership stakes in major U.S. defense contractors, following its recent deal to buy nearly 10% of Intel. In an interview on CNBC, Lutnick pointed to Lockheed Martin as an example, noting that 97% of its revenue comes from the U.S. government, effectively making it “an arm of the U.S. government.” Shares of Lockheed and other contractors, including Northrop Grumman, L3Harris Technologies, General Dynamics Corp, and RTX Corp, rose Tuesday after the comments. Intel last week disclosed an $8.9 billion investment from the government, giving it a 9.9% equity stake in the company. The stake is structured as passive, with the government declining board representation but pledging to support Intel’s recommendations in shareholder votes.