Drones, Energy Storage and Power: Opportunities in SanDisk, Volatus Aerospace and 2G Energy

SanDisk: Is a Second Upward Wave on the Horizon?

SanDisk's stock has more than quadrupled from its peak over the past 18 months. With massive investments in AI data centers, demand for storage specialists like SanDisk has also risen. But the first wave of the boom is now over. SanDisk's stock has lost about a third of its value from its all-time high. The charts for other AI beneficiaries currently look similar.

Fundamentally, the story remains intact. Google's parent company, Alphabet, has just raised its data center capital expenditures this year to over USD 200 billion, following the release of its Q2 earnings. Others are likely to follow suit. Demand for ultra-fast memory chips should therefore remain high.

Operationally, SanDisk remains firmly on track. The results released at the end of April for the third fiscal quarter highlighted the company's exceptional growth. Quarterly revenue surged 251% to USD 5.95 billion, while earnings per share climbed to USD 23.41, compared with a loss in the same period of 2025. Management also appears highly confident about the business outlook, forecasting an exceptional gross margin of 65% to 67% for the fourth and final quarter of the fiscal year.

There is speculation in the market about a stock split, as the share price has long since surpassed the USD 1,000 mark. This apparent price reduction often attracts new buyers, mostly retail investors. In terms of valuation, SanDisk is not expensive. Based on Wall Street's consensus estimates for the current fiscal year, the P/E ratio is likely to be around 18.

However, concerns about the AI bubble bursting are dampening the current momentum. Added to this is the fact that high storage prices are also causing unease among customers. Reports from South Korea suggest that the country might turn to cheaper Chinese storage media in the future. In this respect, even after the sharp correction, an investment in SanDisk remains primarily a high-risk speculation with an outcome that is currently unknown.

Volatus Aerospace: Profiting from Distrust

The drone warfare in the Persian Gulf and between Russia and Ukraine makes it clear that the era of tanks and large warships in their current form has likely come to an end. The middle powers are defending themselves with surprising success against attacks by the major powers and are themselves rising to become among the strongest armies in the world. This is likely to be true, at least with regard to missiles and drones. Accordingly, the future will require not only combat soldiers but also people who have mastered the interplay of software and hardware to perfection. This could mean tough times ahead for corporations like Rheinmetall or Lockheed Martin.

That is because small, agile companies are currently raising capital successfully on the stock market to gain market share in this growth sector. And the volume is substantial. The military market is one of the largest in the world and is growing steadily. Volatus Aerospace also aims to make its mark in this segment, thereby offering an alternative for investors seeking to capitalize on this trend. The Canadian company already has a sales pipeline of CAD 500 million. Its focus is primarily on NATO partners and its home market. In addition to its drone portfolio, Volatus Aerospace also offers maintenance and data services. The scale of the Canadian market alone is evident from the Ottawa government's shift in strategy. Prime Minister Carney no longer trusts Canada's larger neighbour and has initiated a move away from purchasing from US defence contractors. In the medium and long term, more than two-thirds of the national defence budget, totaling approximately USD 80 billion, is to be spent domestically. With Volatus' technology, a domestic company is already positioned to step into the breach and benefit from the mistrust toward (former) partners.

Volatus CFO Abhinav Singhvi explained the company's strategy and detailed its CAD 500 million pipeline.

https://www.youtube.com/watch?v=fURtUtX51IY

Volatus Aerospace shares benefited greatly from these prospects last year. However, with the outbreak of war in the Gulf, the stock became extremely volatile. The share price fluctuated between CAD 0.50 and 0.80. Currently, Volatus shares are once again at the lower end of this range. With a market capitalization of approximately CAD 350 million, the company is significantly undervalued relative to the size of its current sales pipeline. Investors who believe in the transformation of modern warfare can position themselves to benefit from this long-term trend with Volatus Aerospace.

2G Energy: The AI Beneficiary from the Münsterland Region

A major bottleneck in the expansion of AI infrastructure is the energy supply. These massive, multi-billion-dollar projects are often spread across rural areas. The US energy infrastructure generally cannot handle this. The public power grid quickly becomes overloaded, and connection wait times often range from three to five years. Demand is immense, and the system is crumbling. The latest analyst estimates predict that as early as 2035, one-fifth of US electricity demand will come from data centers. So there is much to be done to get these data centers up and running quickly.

This is where a German company comes into play. 2G Energy benefits directly from the electricity demand driven by the AI boom in the US. Many are turning to decentralized options for rapid energy supply solutions. 2G Energy supplies modular, turnkey combined heat and power (CHP) plants in containerized designs. These bypass long wait times for grid connections and can be scaled up quickly. The systems operate in so-called island mode, thereby guaranteeing the extremely critical, uninterrupted power supply required by data centers. In addition to electricity, combined heat and power (CHP) also generates waste heat, which can be used directly to cool AI servers via absorption chillers.

And the orders are now coming in. In May, the company announced a major contract to equip AI data centers in the US. Under the terms of the deal, the Münster-based company will supply containerized power generation systems. According to the company, the contract is worth over 100 million. 2G Energy later announced that it had received additional orders from the AI industry, with a total value also in the hundreds of millions. The Executive Board expects demand to accelerate once again. For the coming year, the group now anticipates revenue to increase to between EUR 570 and 620 million. In addition, the margin is also expected to rise. 2G Energy's shares have more than tripled since the start of the year and are currently consolidating below the annual high. Long-term investors might want to add a few shares to their portfolio. The next technical support level on the chart is around EUR 55.

With SanDisk, investors can bet on a second wave of growth in storage media for AI data centers. The share is not overpriced, but speculation around it is extreme and suitable only for high-risk traders. With Volatus Aerospace, investors are betting on the future of warfare. The era of drones has arrived, and the company now needs to secure more contracts. 2G Energy is getting an extra boost from demand in the AI sector. Decentralized energy supply solutions are likely to remain in high demand for some time to come.