A major tech shift is happening in a place most investors ignore. Many people chase popular themes like AI software stocks. But another fast-moving change is happening in drones and robotics. Felix Prehn, founder of Goat Academy, highlights why this matters for markets and for long-term technology trends.
Drones have become cheaper and much more effective. One key example is the FPV drone. FPV means first-person view, which is a drone that streams video to the operator like a live camera feed. What started as a hobby tool has been redesigned for real missions. Some drones now use onboard AI. AI (artificial intelligence) means software that can spot patterns and make choices. In this case, AI can help a drone recognize a target even if communication is lost.
That matters because modern battlefields include heavy “signal jamming.” Jamming is when signals are blocked so devices cannot communicate well. When drones can still operate during jamming, they become far more useful. This has pushed governments to spend more money on drones and on counter-drone systems (tools that detect, block, or stop drones).
Another important idea is cost. A low-cost drone can damage very expensive equipment. This creates what the Pentagon calls an unfavorable cost exchange ratio. In simple terms, it means: “The cheap attacker is forcing the defender to spend way more money.” When that happens, big budgets often shift toward cheaper tools that can be bought in large numbers.
Felix Prehn also points to a second trend: military technology often becomes civilian technology later. This is called spillover. Past examples include the internet, GPS, and jet engines. Drones may follow the same path. Civilian uses can include farm work, power line checks, emergency search, and delivery.
For investors, one approach is to follow contract activity and the supply chain. Another is to focus on “picks and shovels.” That means investing in the parts that many systems need, like sensors, software, and computing modules, instead of betting on a single drone brand.
Risk still matters. Large defense firms can be steadier. Smaller companies can grow faster but can also drop fast if one contract changes. A clear view of risk helps investors avoid mistakes and stay calm during market swings.
To learn more about Felix Prehn’s work, readers can visit Goat Academy.