Drones, AI and Gold: Samsung, Volatus Aerospace and Equinox Gold in Focus

Samsung: The Light and Shadow of the AI Boom

Samsung reported strong third-quarter results. The company increased its operating profit ninefold year over year to 107.4 trillion won. The South Korean electronics giant's revenue rose to 195 trillion won, though it fell slightly short of analysts' expectations. The main driver, of course, is the global boom in AI data centres. Samsung is benefiting from the shortage of high-performance memory chips such as HBM4 for AI platforms like NVIDIA's Vera Rubin. In addition, DRAM prices have risen sharply.

According to Samsung, the supply situation will not ease until 2027 at the earliest. However, because Samsung is investing heavily in additional production capacity, it aims to secure as many long-term supply contracts as possible with data centre operators.

However, the first downsides of the boom are also becoming apparent. For example, memory chip price increases have slowed in recent months. In Q2, these prices had still risen by a whopping 60%. But things are not all smooth sailing for Samsung either. While the semiconductor division is setting one record after another, the higher prices are weighing on the smartphone and consumer electronics businesses. As a result, Samsung's profit margins are declining. To make matters worse, South Korea's chip export success is also creating headwinds. The won has strengthened significantly against major currencies in recent months, which is weighing on exporters like Samsung. This complex situation is fueling speculation that the AI boom may have already peaked and that profit margins will not improve any further. However, there is some consolation for shareholders: Samsung announced a record dividend.

Volatus Aerospace: Heading into Fall with Momentum

Volatus Aerospace is kicking off the final quarter with strong operational momentum. The Canadian drone company reported the successful first delivery of an unmanned drone fleet for an ISR training system. This initial tranche is valued at about CAD 4.5 million, representing half the original contract's total value. The customer is an unnamed NATO member state, which now has the option to exercise the second tranche of the order by the end of 2027. The drone system itself serves as a training platform, enabling military personnel to develop essential skills in drone piloting, navigation, and reconnaissance. Recent exercises involving NATO forces and Ukraine have exposed significant gaps in these capabilities. Volatus CEO Glen Lynch views the delivery as a milestone that could pave the way for further follow-on orders from NATO members.

In addition, the company has now celebrated the official opening of its plant in Mirabel. The approximately 4,900 m² facility is intended to enable the scaling up of drone production. It focuses on unmanned and autonomous systems for the domestic market and allied countries. The Mirabel facility is the company's first Canadian site for manufacturing drones and systems. This could also be crucial for future business, as Canada aims to become less dependent on its neighbour, the US, particularly in the area of military technology. In the medium to long term, Canada expects to spend more than two-thirds of its defence budget (approximately USD 82 billion) domestically. Potential customers also include European NATO countries.

Following its sharp rise in 2025, Volatus Aerospace's stock remains trapped in a volatile sideways trend. Early September gains were partially sold off, likely due in part to the tense market environment (interest rate hikes). Further orders could lead to another attempt to break out of this range.

Equinox Gold: Golden Prospects

The price of gold is currently not doing investors any favours. The market is still searching for a new equilibrium amid rising interest rates. While the market no longer expects the Federal Reserve to raise rates before the midterms, it is pricing in as many as three rate hikes afterwards. Meanwhile, savvy central bankers are taking advantage of lower prices to buy gold. Leading the way, the People's Bank of China (PBoC) continues to boost its gold reserves significantly. Most recently, Bloomberg also reported rising gold ETF purchases, which is an indicator of asset managers' positioning.

So anyone who expects gold prices to rise again, or at least remain stable, should invest in high-growth gold miners. Equinox Gold is one such company. The company was long considered an expensive producer with margins too low compared with the rest of the industry. However, this is now gradually changing. With the start-up of the Greenstone mine in Ontario, Canada, Equinox will be able to significantly reduce its costs in the medium term. Once fully operational, the company plans to mine up to 400,000 ounces of gold per year at Greenstone during the first five years.

In addition, the acquisition of Orla Mining, which initially drew criticism, is now paying off. Management has already raised its 2026 production forecast and expects consolidated production of about 1.1 million ounces of gold on a pro forma basis for the full year.

Equinox Gold's stock has fallen significantly further than those of its peers from its all-time high at the start of the year, losing more than a third of its value. With production expected to rise and mining costs to fall, improved profit margins could make the current valuation look attractive.

Samsung is posting spectacular profits thanks to the AI boom. However, signs that the boom has peaked are mounting. Volatus Aerospace reports the delivery of its next drone system to a NATO country. Further orders could break the stock out of its sideways trend. Equinox Gold aims to gain ground as costs fall and production rises. The valuation makes it an attractive entry point.