Defense, tungsten, algorithms: Invest in market leaders Rheinmetall, Almonty Industries, and Palantir

Rheinmetall – Continuing on its growth course

Rheinmetall AG is continuing its growth course unabated. In the first half of the year, consolidated revenue rose by 24% to EUR 4.7 billion. Operating profit increased by 18%. The core defense technology business was particularly impressive, with revenue up 36%. Driven by high demand for military equipment, especially in Europe, the order backlog reached a new record high of EUR 63 billion. These solid fundamentals form a strong basis for the future.

The Company is strategically positioned to benefit from long-term increases in defense budgets. The massive investments in new capacity, such as a modern artillery ammunition factory in Lower Saxony, are a direct response to growing NATO orders. With a focus on key technologies, from air defense systems to digital reconnaissance, Rheinmetall is further expanding its market leadership. These investments in infrastructure and innovation will secure future competitiveness and margin development.

Rheinmetall offers investors a rare combination: A well-filled order book that provides planning security for years to come and positioning in structural growth trends. Due to the tense global political situation, NATO partners have pledged to increase their military budgets significantly. This development is not only providing Rheinmetall with a short-term boost. Instead, a structural boom is emerging in the defense sector, from which the Company will benefit sustainably and in the long term. Some of the Company's executive bodies have used the recent setback in the share price to buy shares. The share is currently trading at EUR 1,621.00.

Almonty Industries – A strategic raw material with clear supply risk

Tungsten is an indispensable high-performance material used in the defense industry, toolmaking, and high-tech applications that is virtually irreplaceable due to its unique properties. However, the global supply situation is critical. China dominates with over 80% of production and processing capacity. This extreme dependence on a single source, combined with export restrictions and geopolitical tensions, has alarmed Western nations. The US and Europe are therefore actively pushing ahead with the development of alternative, more resilient supply chains, which opens up significant opportunities for non-Chinese producers.

Almonty Industries is positioning itself specifically as a Western supplier. The operational backbone is the producing mine, Panasqueira, in Portugal. However, the game changer is the flagship project Sangdong in South Korea, one of the largest tungsten deposits outside China, which is scheduled to begin production in 2025. The recent listing on the NASDAQ has brought USD 90 million into the coffers and enables plans for an expanded supply chain, such as a tungsten oxide plant. Strategic decisions, such as a purchase agreement for US defense applications with a minimum price guarantee and the appointment of experts with relevant government contacts to the supervisory board, are crucial.

The current timing appears strategically favorable for several reasons. First, Almonty is on the verge of a major value-driving milestone this year with the start of production at the Sangdong mine. Second, political support for domestic supply of critical minerals is stronger than ever, which is reflected in concrete subsidy programs and increased demand. Third, ongoing supply chain risks and recent price increases for tungsten are creating an extremely favorable market environment for new, independent producers. So, if you believe in the long-term strategic importance of tungsten, Almonty is a company that is well capitalized and strategically positioned for its next chapter of growth at precisely the right time. The stock is currently trading at USD 4.28 on the NASDAQ, well below analysts' price targets of between USD 6.50 and USD 7.60.

Palantir – Strong operating results despite high valuation

For investors betting on the future of data-driven AI platforms, Palantir offers a compelling growth narrative. In the last quarter, the Company not only demonstrated massive revenue growth of 48%, but also accelerated momentum in the US commercial segment with an increase of 93%. The conclusion of million-dollar deals and rising profitability underscore that demand for its complex solutions remains unabated. The repeated upward revision of the annual forecast also signals that management is confident about its own growth path.

The investment theme goes beyond pure growth figures. Palantir operates in a field with extremely high barriers to entry. The deep integration of its software into the critical infrastructures of government agencies and large corporations creates immense customer loyalty and recurring revenues. Its technological edge in analyzing large, complex data sets, driven by AI, positions the Company ideally to benefit from the megatrends of digitalization and artificial intelligence in the long term.

Despite these strong fundamentals, the high valuation premium warrants a cautious perspective. An expected P/E ratio of over 200 for 2025 assumes that the current explosive growth will continue seamlessly for many years. Any slowdown or failure to meet high market expectations could therefore lead to sharp price declines, as the recent volatility has shown. For investors, Palantir is therefore a bet on continued dominance in the AI-driven software market with a corresponding risk/reward profile. Following the recent setback of around 25%, the opportunity profile has improved significantly. The share price currently stands at USD 158.74.

In uncertain times, Rheinmetall, Almonty Industries, and Palantir offer strategic positioning in the key trends of defense, critical raw materials, and AI-supported data analysis. Rheinmetall is benefiting from rising defense budgets with well-filled order books. As a tungsten producer, Almonty Industries addresses the critical supply risk outside China. Palantir monetizes the complexity of the new security situation through data-driven platforms. For investors, these market leaders combine structural growth with strategic relevance.