Future technologies: How Rheinmetall, Power Nickel and Super Micro are shaping the digital revolution

Rheinmetall and KNDS are digitizing Bundeswehr vehicles for EUR 2 billion

The German Bundeswehr is undergoing a digital upgrade, thanks to Rheinmetall. The goal of the digitalization is to provide modern communication technology for ground troops. Rheinmetall and KNDS Deutschland were awarded the contract, worth around EUR 2 billion, by the Federal Office for Information Technology. This amount is sufficient for the command and control equipment of 10,000 vehicle systems for land forces. Rheinmetall receives half of the financing. rheinmetall.com/en/media/news-watch/news/2024/12/2024-12-19-rheinmetall-wins-d-lbo-contract-for-vehicle-integration

Nickel plays a central role in digitization, as the metal is mainly used for storage media. In military communications, records are essential for documenting strategic decisions.

At the same time, this digitization also entails real-time networking, which is beneficial in the possible event of an emergency when defending against attacks. This is ensured by modern IT, which, among other things, equips soldiers with sensors that are connected via a platform solution. This significantly increases the operational capability and interoperability of the troops. This project is scheduled to start as early as mid-2025. The IT structure should be implemented by the end of 2030. This communication update represents one of the most important milestones for the German army. Rheinmetall's share price has risen by 472.65% since the start of Russia's war of aggression against Ukraine in February 2022. The current share price is EUR 615.60.

Power Nickel: Climate-neutral nickel mine in Quebec is taking shape

The current digitalization developments, particularly in the defense sector, are good news for junior explorers like Power Nickel. The Canadian company is pushing ahead with the development of the first climate-neutral nickel mine. The so-called Nisk project powernickel.com/nisk in Quebec, Canada, covers an area of 20 km in length, with numerous high-grade mineral discoveries. In addition to nickel, copper and the metals cobalt, palladium and platinum, which are important for battery production, have also been found there.

Furthermore, the area has excellent infrastructure. The project area is connected to nearby towns by a well-developed road network, all of which have experienced workforces. For example, the small town of Nemaska offers important infrastructure such as grocery stores, hardware stores and medical care. Power Nickel is now planning a large-scale drilling program to expand the high-grade deposits already explored. At the same time, the adjacent areas will be explored for further nickel deposits.

Terry Lynch, CEO of the Company, is enthusiastic about the latest drilling results. "We have sent some samples for metallurgical testing, including material from the early drill holes". One of the holes needs to be readjusted, but the current hole no. 78 is delivering excellent results. The further results will show that our exploration strategy in the western extension is working, Lynch emphasizes.

The excellent physical and chemical properties make nickel a sought-after material for electronic components, such as sensors used in the Rheinmetall order. Nickel is also in demand in the energy transition, for the production of batteries for electric vehicles and in the production of solar modules and wind turbines. Investors should keep a close eye on the precious deposits.

Despite high short interest: Super Micro Computer plans expansion in Malaysia

In the AI sector, the price rally of heavyweights like Alphabet and Nvidia continues unabated. Investors would benefit from looking at suppliers, as Super Micro Computer is considered a promising candidate in the artificial intelligence space, providing servers and IT infrastructure for AI applications.

However, the Company has to meet delivery deadlines for its business units, which must be published by the end of February 2025. Otherwise, it could be delisted from the Nasdaq. This is prompting many investors to short the Company. Despite these uncertainties, Super Micro Computer's management is confident and emphasizes that demand for its products is extremely high. As a result, Super Micro Computer continues to push ahead with its expansion plans. In particular, production in Southeast Asia, particularly in Malaysia, is set to be expanded to strengthen the business in the second half of 2025.

Thanks to the high demand for AI servers, Super Micro Computer expects revenues of USD 5.5 to 6 billion. However, analysts remain skeptical: while JPMorgan is being rather conservative with a target price of USD 23, other experts see significant upside potential. At the moment, the stock is trading at USD 32.61. Although Super Micro Computer could write an impressive recovery story in 2025, investors should currently be watching the stock rather than buying it.

Rheinmetall is benefiting greatly from the modernization needs of the German Bundeswehr. A digitalization order worth over EUR 2 billion is aimed at expanding the IT communication of the ground forces. The project is to be completed over the next five years. The growth prospects for the defense contractor remain excellent in view of full order books and rising defense budgets. The Canadian junior explorer Power Nickel is enjoying steadily growing demand for metals for renewable energies and IT. The latest drill results from the Nisk project show high-grade deposits of various sought-after metals. The area also offers excellent infrastructure. As the potential first carbon-neutral nickel mine in Canada, the Company could benefit from sustainably produced nickel and would thus be a pioneer in the mining industry. Super Micro Computer remains a mixed candidate for the portfolio. Although the AI market, in particular, is growing relentlessly, the Company is late in submitting its financial documents. This could potentially result in the Company being delisted from the Nasdaq.