Military, precious metals, AI technology: Why RENK Group, Golden Cariboo Resources, and Super Micro Computer are booming right now

RENK Group – Niche strength with global ambitions

The European defense industry is booming – and the RENK Group is positioning itself as an underrated player. Following its stock market comeback in 2024 with a EUR 500 million IPO, the Augsburg-based company is benefiting from rising defense budgets. With revenue growth of over 20% and an EBIT margin of 16.5% in 2024, RENK has delivered strong financial results. The key to success lies in specialization. The Company generates 70% of its revenue from high-performance gearboxes for tanks, submarines, and industrial plants. An order backlog of EUR 5 billion underscores the demand, which is driven by global security concerns and modernization programs.

RENK is focusing on international expansion. The acquisition of US gear manufacturer Cincinnati Gearing Systems strengthens its presence in North America, a key market for marine orders. At the same time, a cooperation with PARTZSCH is expanding production capacities for electric machines, including submarine generators. In India, a growing market with rising military spending, RENK is expanding its drone technology with Quantum Systems. These initiatives aim to shorten supply chains and secure technological leadership. This is crucial in a market with high barriers to entry.

Despite a rise of around 190% in its share price since the beginning of the year, RENK remains the focus of analysts. Berenberg recently raised its price target to EUR 54.50, but the valuation is already "ambitious". In the long term, the Company could benefit from order volumes related to the MGCS tank project or rising naval budgets. However, caution is advised: geopolitical shifts or supply bottlenecks could slow growth. The stock is at an all-time high since its IPO and is currently trading at EUR 52.62.

Golden Cariboo Resources – History, drilling successes, and technology

British Columbia has a rich history of gold mining. In the 19th century, the Cariboo Gold Rush attracted tens of thousands of people – today, projects such as Brucejack are shaping the region. Golden Cariboo operates in the same area, directly adjacent to Osisko Development. The Quesnelle property covers 94,899 hectares along significant faults. Since July 2024, nine consecutive drill holes have been completed, each returning visible gold, including QGQ24-20 with up to 16.35 g/t gold and 9.09 g/t silver over 4.29 meters. The latest discoveries underscore the potential for a larger ore body – a scenario investors should closely monitor in the resurgent gold market.

Golden Cariboo Resources also reported visible gold in its latest drill hole in the Halo Zone on its Quesnelle property in British Columbia. Drill hole QGQ24-21 intersected 53 m of gold-bearing mineralization at a depth of 257 m. Samples are now being analyzed using the innovative PhotonAssay method, which examines larger rock samples and thus reduces the "nugget risk." The technology could become standard in the future for determining more accurate gold grades. At the same time, planning is already underway for follow-up drilling to further explore the mineralization to the north and at depth. Investors are eagerly awaiting the lab results, which are expected in the coming weeks.

Golden Cariboo is currently undertaking a private placement, which is one reason for the recent decline in its share price to CAD 0.095. However, CEO Frank Callaghan, who has already successfully developed the Bonanza Ledge project, is committed to transparency. The ongoing financing is intended to advance exploration. In addition, LiDAR mapping in summer 2025 will optimize drill planning. Gold explorers such as Golden Cariboo could benefit from rising precious metal prices and strategic advances. The combination of an experienced team, promising geology, and modern technology is raising hopes. The stock can currently be purchased at a significantly lower price than during the capital increase when it was offered at CAD 0.13.

Super Micro Computer – Lowers forecast

After spectacular growth of 125% year-on-year, Super Micro Computer grew by 54.9% in the second quarter of 2025, and an increase of around 18.2% was expected for Q3. The main reasons are postponed investment decisions by major hyperscalers like Microsoft, postponed data center projects, and additional burdens from trade tariffs and the strong dependence on Taiwanese suppliers; above all, Ablecom, with 93.6%, creates uncertainty around costs and margins. Although demand for AI infrastructure remains unbroken, customers are likely to hold back on spending in the short term. Pressure on timing and delivery has clouded the short-term outlook.

Preliminary figures for the third quarter show that even at the upper end of the forecast of around USD 4.6 billion, revenue is about 15% below the already lowered expectations, which corresponds to annual growth of only 17%. At the same time, gross margin slipped below 10% – a multi-year low triggered by write-downs on older inventory and additional costs for accelerated product launches. In addition, competition from Dell, Hewlett Packard, and specialized GPU cloud providers is intensifying price pressure, which is further weighing on margins.

Despite these hurdles, Super Micro remains attractive thanks to its strong focus on AI server solutions. The Company now generates more than two-thirds of its revenue from specialized server solutions for artificial intelligence. Cooperation with technology partners such as AMD also strengthens the development of new products. Based on fundamental indicators – including an assumed return on equity of 15% and long-term growth of 4% per year – an intrinsic share value of around USD 50 can be derived. At the same time, the comparatively low P/E ratio of 12 and a valuation of around USD 19 billion point to potential upside. However, short-term volatility due to trade disputes and geopolitical risks remains. The stock started with a gap down following the lowered forecast and is currently available for USD 30.66.

2025 combines three megatrends: military, precious metals, and AI. The RENK Group is consolidating its position as a niche defense supplier with specialized gearboxes and global acquisitions – despite its ambitious valuation. Golden Cariboo Resources is scoring points in the gold rush with promising drilling in British Columbia and modern analysis techniques, but the financing phase is currently weighing on the share price. Super Micro Computer is struggling with supply chain risks and lower forecasts, but remains promising in the long term thanks to its dominance in AI servers. While RENK and Golden Cariboo are benefiting from the crisis mode, Super Micro shows that patience is also needed in future technologies.