Global Advancements in Drone Technology
During 2025, drone technology entered its maturation stage, with China leading the advancements. The People’s Liberation Army (PLA) showcased the Jiu Tian (Ninth Heaven) drone mothership, boasting a range of up to 7,000km and the capability to deploy up to 150 AI-integrated swarm drones. This development drew parallels to the Tau faction from Warhammer 40,000, known for its inspiration from East Asian cultures. In conjunction with China’s J-20 superiority fighters, the GJ-11 Sharp stealth UCAV is being utilized for deep-strike missions. On the maritime warfare front, the Wing Loong X enhances the PLA’s anti-submarine capabilities, while the CH-7 Rainbow provides deep-penetration reconnaissance and precision strikes in contested airspace.
US Initiatives and Key Industry Players
To accelerate the domestic drone industry, encompassing both commercial and military applications, President Trump signed the executive order titled “UNLEASHING AMERICAN DRONE DOMINANCE” in early June 2025. Beyond privately held Anduril Industries, Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) stands at the forefront of advanced drone technology with its XQ-58 Valkyrie. However, the stock price of KTOS, at $120, has already surpassed its average price target of $108.22 per share, indicating potential limitations for immediate upside.
Amprius Technologies Inc. (NYSE: AMPX) – Significant Upside Potential
While high-end military drones often rely on traditional jet fuel, the majority of drones are battery-powered. Amprius Technologies Inc. (NYSE: AMPX) offers a strong investment opportunity in this growing market. The company specializes in developing high-energy density silicon anode lithium-ion batteries essential for both air mobility and light electric vehicles.
Amprius SiCore batteries typically deliver an energy density of 450 Wh/kg, with their premium SiMaxx batteries reaching 500 Wh/kg. At CES 2026, the company received the Best of Innovation award for its 520 Wh/kg battery, specifically engineered for electric aviation.
Amprius maintains lean capital expenditures by leveraging manufacturer contracts across Europe, Asia, and South Korea. In its third quarter of 2025, ending September 30, Amprius reported revenue of $21.4 million, more than double the $7.8 million recorded in the same quarter of the previous year.
Although the company has not yet achieved sustained profitability, its net loss in Q3 was significantly reduced to $3.9 million, a substantial decrease from $10.8 million in the prior-year quarter. Amprius holds $73.2 million in cash against total current liabilities of $16 million.
Over the past 52 weeks, the average AMPX stock price has been $6.51 per share, with an all-time high of $14.61 reached in mid-October 2025. Currently trading at $9.41, AMPX stock is priced below its lowest price target of $16, with an average price target of $17.17 per share, according to Wall Street Journal data.
Unusual Machines Inc. (NYSE: UMAC) – Promising Upside Potential
The global drone market is projected to reach $57.8 billion by 2030, with a compound annual growth rate (CAGR) of 7.9%, according to a Drone Industry Insights report. While cinematography drones currently dominate, first-person view (FPV) drones are gaining popularity for their immersive flying, acrobatic, and racing capabilities.
Unusual Machines primarily targets the FPV drone market. Following its acquisition of Fat Shark for FPV headsets and the Rotor Riot components retailer in early 2024, the company now operates its own Rotor Riot website. The company is actively expanding its B2B sales of drone components, including motors, flight controllers, analog video systems, and electronic speed controllers, as detailed in its late 2024 10-K filing.
As a supplier of unmanned aerial system (UAS) components, Unusual Machines is also part of the Blue UAS framework, providing components compliant with the National Defense Authorization Act (NDAA). In late 2025, the Army’s PBAS (Purpose-Built Attritable System) program selected Unusual Machines’ customers, Envision Technology and Strategic Logix, for Tranche 1.1 installation.
With 82 employees at its Orlando-based facility, which was expanded in November, the company identifies a $600 million market opportunity for sub-$2,000 small drones for attritable systems. The FCC’s mandate for U.S.-made critical drone components further creates market opportunities.
Regarding its financial performance, Unusual Machines missed the Q3 Zacks Consensus Estimate for revenue by 22.65%, reporting $2.14 million. This contrasts with the previous quarter, where the company exceeded revenue expectations by 17.22%. Notably, Unusual Machines reported its first profitable quarter in Q3, with a net income of $1.6 million.
As a relatively new publicly traded company, having debuted in February 2024, UMAC stock reached an all-time high of $17.48 per share in October. Shareholders have had multiple opportunities to realize profits due to significant price fluctuations over the past year.
The current trading range for UMAC, at $15.16, aligns with the lower end of its outlook, which starts at $15 per share. The average price target for UMAC stock is $19.20 per share.