Market Shock and Plunge for Ballard Power and ITM Power! Does HPQ Silicon Offer a Better Opportunity Following New Deals?

ITM Power: Government Funding and Market Skeptics

At ITM Power, two worlds are currently colliding. The company recently announced very encouraging operational developments. In the first half of the fiscal year, revenue reached a record high of GBP 18 million. Management subsequently raised the annual forecast to GBP 40-43 million. In addition, the UK sovereign wealth fund provided support with an investment of GBP 40 million. However, this also means that it is now the second-largest shareholder, holding over 10%. Another milestone is the new partnership with Protium Green Solutions for the Cromarty Hydrogen Project in Scotland, which will utilize 15 megawatts of ITM electrolyzers.

All of this is good news, yet the stock market punished the company. ITM Power's stock lost around 25-27% of its value in just one week. However, this paradoxical plunge resulted primarily from its inclusion in the MSCI UK Small Cap Index at the end of May. Hedge funds mercilessly exploited this event for profit-taking as part of a "sell the fact" reaction. In other words, they had all anticipated this in advance and bought shares. This also explains the rise. After the expected announcement, they sold into the market at a profit.

Another setback came from Goldman Sachs. Their analysts reaffirmed their clear "Sell" recommendation and set a price target of just GBP 0.63. Now all eyes are on June, when the UK Competition and Markets Authority (CMA) will decide on a key grant of GBP 46.5 million for the new, cost-saving Chronos production line. Decisions on the HAR2 hydrogen auction and the Uniper Humber H2ub are also pending.

It is going to be exciting, but depending on the news, the stock could move in either direction. It is tricky right now, and it is better to stay on the sidelines for now!

Ballard Power: Leadership Change and Margin Pressure Weigh on the Share

Things were just as turbulent at Ballard Power. The fuel cell manufacturer's stock plummeted by over 15% in a single day to just under EUR 4.40. And that was not the end of it, as the sell-off continued over the following days. The stock is currently trading around EUR 3.80. This slump surprised many investors, as shareholders had just re-elected the entire management team by a clear majority at the annual general meeting.

However, the real reason for the price drop was most likely behind the scenes. The major strategic shareholder, Weichai Power of China, sold shares, reducing its stake to below 15%. As a result, the important Asian partner lost its seats on the supervisory board, which fueled market concerns about the company's future direction.

On the financial front, Ballard Power reported somewhat mixed results for the first quarter. Revenue rose by 26% to USD 19.4 million, and the gross margin climbed to 14%. At the same time, however, the order backlog fell slightly by 5%. After all, the company has a comfortable financial cushion of over USD 516 million. In the second half of 2026, "Project Forge" is also set to go into full production. This highly automated facility for bipolar plates is expected to drastically reduce unit costs.

Following the price drop, the share could potentially stabilize at EUR 3.50 and begin to bottom out. Then one could bet on a rebound toward EUR 4 with a tight stop.

HPQ Silicon: Alliances and Technical Support

While pure-play hydrogen stocks are struggling, HPQ Silicon presents itself as an alternative. The Canadian technology company, which focuses on battery materials and autonomous hydrogen production (through its stake in Novacium), is systematically expanding its market position. HPQ holds a strategically important 36.8% stake in the French startup Novacium and owns the exclusive licensing rights for North America.

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Two recently published announcements underscore this positive development. On May 21, 2026, HPQ announced that Novacium had signed a letter of intent (LOI) with GH Technologies at the international CIBF trade show in China. This agreement aims to supply high-performance GEN4 lithium-ion cells to the Asia-Pacific region. With a reported capacity of over 6,600 mAh and an energy density of 319.9 Wh/kg, these cells demonstrate remarkable technical maturity.

Shortly thereafter, on June 4, 2026, HPQ announced its next major achievement. At the renowned Eurosatory defence trade show, Novacium, together with LN Innov and Groupe Zekat, is presenting a European drone propulsion system. This system utilizes Novacium's newer, silicon-enhanced batteries and is thus targeting the growing market for autonomous security systems.

These operational advances have not yet been reflected in the chart, but that could happen in the coming weeks. HPQ Silicon's stock could now begin to gain significant momentum. The share has reached the lower boundary of its trend channel at CAD 0.16 (see chart below). At this level, there is strong horizontal support attracting buyers. If the price turns from here, the journey could lead quite rapidly toward the upper boundary at CAD 0.23. A first sustained breakout to the upside would already be signalled from a level of CAD 0.19. Once this mark is breached, momentum is likely to increase significantly, setting its sights on the previous high of CAD 0.24. If this resistance is also broken, the path is clear from a technical perspective all the way to CAD 0.30. The risk-reward ratio looks extremely attractive at the current level. A highly exciting technical situation! Add to your watchlist or set a limit order!

The stock market is showing no mercy to hydrogen players like ITM Power and Ballard Power. Despite government funding and record revenue, ITM must prove that its margins are sound and that projects are actually being executed. Ballard is struggling with the loss of its Asian partner and a dwindling order backlog, even though its balance sheet remains fairly stable for now. HPQ Silicon looks like an attractive opportunity in this environment. The company diversifies its risks through its investments, delivers tangible technological results in both Asia and Europe, and is building a broad portfolio. The current weakness of the "big competitors" could provide a stage for HPQ Silicon to quietly deliver positive performance. Investors looking for technology stocks outside the mainstream should keep this stock firmly on their radar and watchlist right now.