Trump’s National Security Strategy: An investor lens

Key points:

• Trump’s National Security Strategy broadens “security” beyond defense to include borders, resilient infrastructure, energy strength, critical minerals supply chains, and technology leadership.
• That translates into seven practical lanes for investors to watch: defence/border, industrial base, energy dominance, critical minerals, drones, space, and nuclear—each with different drivers and risks.
• The differentiator is follow-through: focus on budget details, program funding, approvals, and contract wins, because headlines often move faster than real activity.

The Trump administration’s National Security Strategy makes it clear that “national security” is not just about defense spending. It sets out a broader agenda that links security to how the country is protected, powered, supplied, and technologically equipped.

It prioritises border control and stronger enforcement over entry routes, treating internal security and control of access as foundational. It also highlights the need to protect infrastructure at home—from power systems to transport and communications—so the country can withstand disruption from natural disasters, cyber threats, or hostile actors.

On the military side, the strategy emphasises a more capable and ready force, including missile defense with a homeland focus under the “Golden Dome” concept. Alongside this, it calls for rebuilding the industrial base, with more production capacity onshore and supply chains that can scale in a crisis rather than relying on vulnerable overseas links.

The document also frames energy strength as strategic, explicitly including traditional fuels and nuclear, and points to the importance of the equipment and infrastructure that supports reliable energy supply. It elevates critical minerals as a national security issue as well, recognising that many modern systems depend on materials with concentrated or geopolitically sensitive supply chains.

Finally, it stresses staying ahead in critical technologies—including areas that shape both economic power and military capability—while protecting intellectual property and maintaining an advantage over rivals.

Below we translate the priorities from Trump’s National Security Strategy into seven practical lanes, so it’s clear what the focus is, why it matters, and which stocks sit closest to it for references (not recommendations).

1) Defence and border security

Border control and homeland security sit alongside “peace through strength.” The strategy is clear about modernising the military, improving readiness, and building deterrence, including missile defense for the homeland.

This lane usually has the most direct link to government defence spending and orders, because it includes prime contractors, shipbuilding, secure communications, and mission systems.

What to watch: defence budget details, big programme funding, order backlogs, and major contract wins.

Risks: spending can arrive in waves, not smoothly, and big projects can run over budget or get delayed.

Watchlist: Lockheed Martin (LMT), RTX (RTX), Northrop Grumman (NOC), General Dynamics (GD)

2) Industrial base

The strategy treats the industrial base as part of national security. The message is simple: the U.S. wants the ability to build things at home and scale production when needed.

This lane is often about the “builders and enablers” behind reshoring and national buildout: industrial automation, equipment, aerospace/defense components, and the machinery that powers investment cycles.

What to watch: signs of rising factory and infrastructure spending, order growth, and company guidance on backlog and capacity.

Risks: these businesses are more tied to the economic cycle, so a slowdown can hit demand even if the policy direction stays supportive.

Watchlist: Honeywell (HON), Teledyne Technologies (TDY), Caterpillar (CAT), Deere (DE)

3) Energy dominance

The strategy explicitly frames energy as strategic and includes oil, gas, coal, and nuclear. The point is energy strength at home and the ability to support industry and resilience.

For investors, this is not only about oil prices. It also touches the “plumbing” of energy: grid equipment, electrification hardware, grid buildout services, firm power, and LNG infrastructure.

What to watch: grid upgrade spending, bottlenecks in equipment, policy signals around energy infrastructure, and power demand trends.

Risks: permitting and regulation can slow projects, and commodity-linked parts of the theme can be volatile.

Watchlist: GE Vernova (GEV), Constellation Energy (CEG), Exxon Mobil (XOM)

4) Critical minerals

The strategy talks about reducing dependence on outside powers for key inputs and expanding access to critical minerals and materials.

This matters because modern defence systems, grids, electrification, and advanced manufacturing all rely on materials with concentrated supply chains. Investors often watch not just mining, but also refining and processing capacity.

What to watch: new processing/refining capacity, offtake agreements, permitting progress, and project timelines.

Risks: commodity prices swing, project timelines slip, and many names are more sensitive to headlines than earnings.

Watchlist: MP Materials (MP), USA Rare Earth (USAR), Critical Metals Corp (CRML), Lithium Americas (LAC)

5) Drones

Low-cost drones versus expensive defenses is one of the real-world problems the strategy highlights. It is also a homeland issue, not just a battlefield issue.

Separately, the FY2026 defence bill policy statement points to expanding counter-drone authority through the SAFER SKIES Act.

This lane tends to be higher volatility because a lot of the companies are smaller and contract-driven.

What to watch: contract wins, delivery schedules, and regulatory/authority changes for counter-drone activity.

Risks: smaller companies can swing sharply on single headlines or single contracts, and competition moves fast.

Watchlist: AeroVironment (AVAV), Kratos (KTOS), Ondas (ONDS)

6) Space

National security increasingly depends on satellites for communications, navigation, and surveillance. This theme sits naturally alongside the strategy’s focus on modern defence and protecting the homeland.

This lane includes launch and space systems, satellite communications, and earth observation.

What to watch: contract wins, launch cadence, satellite deployment milestones, and funding needs.

Risks: timelines are long, execution risk is real, and newer names can be valuation-sensitive.

Watchlist: Rocket Lab (RKLB), Viasat (VSAT), Planet Labs (PL), AST SpaceMobile (ASTS)

7) Nuclear

The strategy explicitly calls for a modern nuclear deterrent and also includes nuclear within energy dominance.

For investors, nuclear spans several different “sub-stories”: uranium supply, fuel services, nuclear components, and advanced reactor development.

What to watch: long-term contracting trends, fuel supply policy signals, project approvals, and buildout timelines.

A simple way everyday investors can think about “adding” these themes

• Consider a small sleeve approach if appropriate to your circumstances, not a full portfolio replacement. These themes can help diversify your sources of return.
• Diversification across lanes may reduce concentration risk. Some are steadier (defence, grid/industrial enablers) and some are more volatile (drones, early-stage minerals, advanced nuclear).
• Real‑world milestones (budgets, awards, approvals, buildouts) can be useful reference points and tend to matter more than speeches.

Bottom line

National security is no longer a single sector story. It is a stack—borders, resilience at home, deterrence, domestic production, energy, materials, and strategic tech. The market will react quickly to the narrative, but the real opportunity is in tracking what actually gets funded and built. Use these seven lanes as a framework and focus on the proof points—budgets, awards, approvals, and buildouts—because that is where the strategy stops being words and starts becoming activity.