Britains BAE Systems leapt by 9% on Monday, while Germanys Rheinmetall jumped by 14%.
Stocks in Swedens Saab, Italys Leonardo, and Frances Thales also boomed.
By the days end, the Stoxx Europe aerospace and defence index had hit an all-time peak.
Military tech firms have also been surging.
This suggests that cutting-edge, tech-centric firms could possibly capture a sizeable share of the market.
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European defence techstartupshave also grabbed investors attention.
In 2024, they attracteda record $5bnin VC funding a 24% increase over the previous year.
The momentum has raised expectations of future public listings.
That could fire up the door to fresh investment opportunities and raise the profile of these emerging companies.
The push for defence tech
The spending spree comes amid mounting concerns about Europes military sovereignty.
Leaders across the continent have been shaken by the Russia-Ukraine war and tensions with the Trump administration.
Ukraines President, Volodymyr Zelensky, has called for the creation of an army of Europe.
His French counterpart, Emmanuel Macron, has urged his allies to wake up and spend more on defence.
A growing share of their budgets is going to military tech and startups are beginning to cash in.
A major factor in this gap is the struggle to secure late-stage funding acommon problemfor European startups across industries.
Nonetheless, the rise of defence tech is set to continue.
Defence tech is a key theme at this years Assembly, the invite-only policy track ofTNW Conference.
The event takes place on June 19 and 20 a week before the NATO Summit arrives in Amsterdam.
Tickets for TNW Conference arenow on sale.
Story byThomas Macaulay
Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he e(show all)Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he enjoys playing chess (badly) and the guitar (even worse).
