Red Cat

What a week for drone stocks 🔥

📢 𝐉𝐔𝐒𝐓 𝐈𝐍: $Red Cat(RCAT.US) Red Cat’s Blue Ops Begins Full-Rate Production of 𝐕𝐚𝐫𝐢𝐚𝐧𝐭 𝟕 Vessel

Time for Drones huh! When the momentum kicks in, market goes like there is no tomorrow.

📊 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑 𝐍𝐎𝐓𝐄: AI Data Center Boom Accelerates Growth in 𝐃𝐫𝐨𝐧𝐞𝐬-𝐚𝐬-𝐚-𝐒𝐞𝐫𝐯𝐢𝐜𝐞 Market

📢 𝐉𝐔𝐒𝐓 𝐈𝐍: According to the Wall Street Journal, the TRUMP administration is in talks with a U.S. drone company on financing arrangements.

$Red Cat(RCAT.US) with a cute little candle at IPO Avwap. It's a Category: D setup so should be traded like one with far less capital. There is better fish to fry.

📢 𝐉𝐔𝐒𝐓 𝐈𝐍: $Red Cat(RCAT.US) Red Cat Holdings - on May 8, Teal Drones Got $9.5 Mln Purchase Order Under U.S. Army Program - SEC Filing

Taiwan will produce NT$20 billion (US$630 million) worth of drones this year, up from NT$5 billion in 2024, as it seeks to transform into a secure place for drone production, media report, (literally, “Non-Red supply chain” in reference to Communist China/authoritarian states). Taiwan firms are already working with Skydio, the biggest US drone firm, and Parrot (France), the world’s 2nd biggest drone firm. $Aerovironment(AVAV.US) $Kratos Defense & Security(KTOS.US) $Red Cat(RCAT.US) $AIRO(AIRO.US) $Ondas(ONDS.US) $AgEagle Aerial(UAVS.US) $ZenaTech(ZENA.US) $Northrop Grumman(NOC.US) $Lockheed Martin(LMT.US) $L3Harris Tech(LHX.US)

Source: Dan Nystedt

The US military budget for 2026 is close to $1 trillion. Although it increased by 13% year-on-year, the most explosive part is not the total amount, but where the money is going: heavy assets are giving way to "algorithms + unmanned swarms"!

The future battlefield will no longer be a contest of pilots, but a duel of AI computing power.

I've compiled a list of 6 representative companies in this wave of "military intelligence" (not a recommendation, just a logical breakdown):

Unmanned Aerial Vehicle (UAV) direction:

1、$Aerovironment(AVAV.US): The maker of the "Switchblade" drone with an impressive track record. It has relatively high order certainty and holds billions of dollars in contracts.

2、$Red Cat(RCAT.US): Focuses on small military drones, already integrated into the US military system. If orders continue to grow, it's a long-term business.

3、$Kratos Defense & Security(KTOS.US): Works on unmanned combat aircraft and hypersonic-related technologies. High potential, but the key is whether the military will make large-scale purchases later.

AI Hub and Computing Power

4、$Palantir Tech(PLTR.US): The "brain" of the future battlefield. It doesn't build aircraft, it builds command systems that link drone swarms into a collaborative network.

5、$One Stop(OSS.US): Edge computing hardware, enabling unmanned vehicles to possess formidable computing power even without network connectivity.

Dark Horse Potential, Small-Cap Volatility Stocks

6、$Ondas(ONDS.US): Small size, high elasticity. The core logic is its autonomous control system. The next step is to see if it can meet the 2026 revenue guidance of $180 million!

A word of caution:

Defense stocks are different from tech stocks. They have long order cycles and are heavily influenced by policy, especially small-cap companies which experience very volatile swings—they surge fiercely and fall just as unceremoniously.

Summary:

The nature of warfare has changed! It has shifted from "expensive, few, large equipment" to "cheap, numerous, autonomously collaborative unmanned swarms." Whoever can best integrate "unmanned systems + AI + computing power" will likely be the core beneficiary of the next phase of military upgrades.

#DoubleOrMore2026 list has three names over 100%. Click on the bottom tabs to see the list. $Satellogic(SATL.US) $US Antimony(UAMY.US) $Red Cat(RCAT.US)

Source: Sunrise Trader