Bombshell, Crash Risk and Buy Recommendation! Hensoldt, D-Wave and HPQ Silicon in Focus!

HPQ Silicon: A Major Breakthrough for the Drone Dark Horse

A breakthrough for HPQ Silicon. Shortly after the start of the testing phase, the French Army has placed an order for drone batteries. This marks an important step toward the commercialization of their battery technology for HPQ Silicon and its French partner, Novacium.

Through its partner LN Innov, the company received its first commercial order for GEN3 battery packs featuring silicon-based anode technology. The 6S1P packs, with a capacity of 6,000 mAh, are to be integrated into FPV drones intended for a regiment of the French Army. This marks the first time the technology has made the leap from testing and qualification to a real-world defense application.

The order is the result of several months of testing with the end customer. Prototypes were delivered as early as the second quarter of 2026 and tested for performance and reliability. According to the companies, the battery packs met the specified requirements, following which the first order was placed. This marks entry into the French defense supply chain and, by extension, that of NATO. The higher energy density of the silicon anodes can, among other things, enable longer ranges or higher payloads for FPV drones.

Financially, the initial order is not yet significant for HPQ, but it is strategically relevant. It provides a first commercial reference in the defense sector. This should facilitate further orders, especially since additional discussions and test programs with potential customers are already underway. At the same time, this success bolsters HPQ's plans, along with those of Novacium and LN Innov, to develop an integrated propulsion platform for drones and defense applications. The company also has its sights set on North America. This is particularly interesting, as the US appears to have considerable ground to make up in the drone sector.

HPQ stock is still an insider tip — but news like this could soon change that.

https://youtu.be/V6FO2uPdQLI?si=krfrV3gpZFo5xt5e

Time to Sell Hensoldt?

While HPQ is emerging as the new drone play, mwb research has doubts about the order volume of German defense companies. In addition to Rheinmetall, Hensoldt is also currently rated "Sell" by analysts. In their latest study, the experts question the significance of order backlogs in the European defense sector. According to the analysts' assessment, the published backlog figures are only partially comparable across companies because they sometimes include framework agreements or management-estimated business volumes that have not yet been secured. Of the approximately EUR 122 billion in reported order backlogs across the five German defense companies analyzed, about EUR 28 billion, or 23%, consists of revenue commitments that are not yet firm contracts.

Hensoldt comes out relatively transparent in this analysis. According to mwb, the reported order backlog of EUR 10.3 billion consists entirely of contractually secured business and includes neither framework volumes nor designated platforms. Backlog coverage thus stands at 4.1x and remains unchanged even when adjusted to include only firm orders. In contrast, the comparable metrics for companies such as Renk and Rheinmetall drop significantly when only firm orders are considered.

Despite the high-quality order backlog, mwb remains cautious regarding Hensoldt. The focus is less on the size of the backlog and more on how quickly and profitably it can be converted into revenue. Analysts continue to see risks stemming from dependence on armored vehicle programs and consider the targeted share of Software Defined Defense, just 8% by 2030, to be low. The price target remains unchanged at EUR 62, and the rating remains "Sell." Given the current price of EUR 88, this implies significant downside potential.

D-Wave Quantum: Analysts Recommend a Buy

D-Wave Quantum's stock has made an impressive comeback in recent weeks. Since the end of July, the stock has gained 25% and is trading above USD 20 again. However, it is still quite a way from its 52-week high of USD 46. BMO Capital estimates the fair value of D-Wave Quantum's stock at USD 35 and rates it "Outperform". The technology company is among the few quantum computing players already generating actual commercial revenue. Its technological approach combining quantum annealing and gate-model technology is unique. Given its first-mover advantage, analysts therefore see D-Wave as particularly well-positioned to establish itself commercially in quantum computing.

There was recently positive news regarding the collaboration with NTT DOCOMO. The Japanese telecommunications group is one of D-Wave's key reference customers. Together, they unveiled a second quantum computing application in productive use for network operations. The new solution optimizes so-called tracking area lists and is designed to reduce signal load in the cellular network. During daily peak periods, the volume of location registration signals fell by 65.3%, while paging signals decreased by 7.0%. In a test scenario involving 333 base stations, three TA lists, and nine tracking areas, the optimization took approximately five minutes. The results are subsequently incorporated into DOCOMO's network planning and day-to-day operations.

For D-Wave, the application is further proof that quantum computing can already be used today in concrete operational processes. While the first application developed jointly with DOCOMO aimed to reduce paging signals within individual tracking areas, the new solution addresses a more complex optimization task spanning multiple areas. DOCOMO is thus expanding the productive use of D-Wave technology and demonstrating how hybrid quantum methods can contribute to a more efficient use of existing telecommunications infrastructure.

HPQ Silicon is making clearly discernible progress in commercializing its battery technology. Supplying the French Army is likely to open doors in other NATO countries. The stock is unlikely to remain a hidden gem for much longer. Hensoldt is an established player in the defense sector. As with Renk and Rheinmetall, however, the question arises as to how quickly and for how long this growth will last. Perhaps the stock market is simply too optimistic in this regard. A great deal of optimism is also needed for investments in the quantum sector. For those who believe in the future monetization of the technology, D-Wave is likely a core investment among pure-play options.