Close menu

February 6th, 2024 | 07:00 CET

Royal Helium, Infineon, Boeing - Helium: The rise to a High-Tech commodity

  • Helium
  • hightech
  • Technology
Photo credits:

Helium, a lightweight, non-flammable and colourless gas often associated with party balloons, plays a far more significant role in the high-tech industry. From semiconductor production to nuclear magnetic resonance imaging to space travel, helium is an indispensable element that enables a wide range of high-tech applications. However, although demand for this precious gas continues to rise, its long-term availability is becoming increasingly problematic. In this article, we examine how this unassuming gas powers the modern high-tech industry and how you can benefit from it.

time to read: 4 minutes | Author: Armin Schulz
ISIN: ROYAL HELIUM LTD. | CA78029U2056 , INFINEON TECH.AG NA O.N. | DE0006231004 , BOEING CO. DL 5 | US0970231058

Table of contents:

    Royal Helium - In production

    Royal Helium is a player in the field of helium exploration and production, making great strides in transforming into an industrial gas company. The properties are over 1,000,000 acres (equivalent to just over 400,000 hectares) and are located in Saskatchewan. The Steveville helium plant is 100% owned by the Company and is expected to set a new standard for helium plant emissions in Alberta. Once permits are issued, the facility is expected to generate CAD 3 to 6 million per year in carbon credits at current prices, underscoring Royal Helium's commitment to environmental sustainability.

    The state-of-the-art facility has a capacity of 15 million cubic feet of raw gas per day. The proprietary modular design allows for the utilization of other by-products such as nitrogen, CO2 and condensate in addition to helium. This allows for the production of 22,000 MCF of helium, 20 million pounds of food-grade CO2 and 2,920 bbl of condensate per year. Currently, 4 of at least 15 anticipated helium fields are in development. The Steveville project's proof-of-concept will shorten the development time, and ongoing production will make it considerably easier to obtain financing. This was evident at the beginning of January when the Company seamlessly extended its credit line by CAD 3.6 million to purchase additional helium trailers for transportation.

    The importance of helium today is demonstrated by the Company's recent announcement on February 1 that it has received a CAD 3 million interest-free loan from the Canadian government under the Aerospace Regional Recovery Initiative to support its helium processing operations. The Company is selling its purified helium to an undisclosed US aerospace end customer for USD 538 per cubic foot. As helium is now used in semiconductor manufacturing, aerospace and defense and no longer primarily in healthcare, demand is increasing. The consistently positive news is not yet reflected in the chart. The share is currently trading at CAD 0.17. This is likely to change after the release of the figures for the first quarter.

    Infineon - Collaboration with Honda

    The production of semiconductors is a highly complex and precise process that requires the use of advanced materials and gases. One of these essential gases is helium, which plays a unique role in semiconductor production. Due to its exceptionally low reactivity and high thermal conductivity, helium is indispensable for several key stages of chip production. This will be no different for Infineon, Germany's largest chip manufacturer. At the moment, however, the focus is on the quarterly figures, which are expected today, February 6. After competitors have recently presented mixed figures, the tension remains high.

    Sales are expected to reach EUR 3.8 billion with a margin of 22%. Traditionally, customers are keen to reduce their stocks at the end of the year. Experts hope the current year's outlook will provide a more precise indication of how the share will fare. On January 10, Infineon signed an agreement with SK Siltron CSS for the supply of silicon carbide wafers. This move is aimed at ensuring the production of SiC semiconductors. To avoid being surprised by bottlenecks in the future, the Company is pursuing a multi-supplier strategy.

    At the beginning of February, it was announced that Infineon had agreed on a strategic collaboration with Honda. Together, they want to create product and technology roadmaps. This should accelerate the introduction of new technologies. Analysts are positive about the share, which currently stands at EUR 34.14. In January, there were 5 "Buy" recommendations with price targets between EUR 45 and EUR 50. Only JP Morgan recommended a "Hold" with a price target of EUR 38.50. With the quarterly figures, the volatile share is likely to move again.

    Register now for the 10th International Investment Forum

    Boeing - Quality problems

    Helium plays a crucial role in the aerospace industry due to its unique physical and chemical properties - it is the second lightest element, non-flammable, and characterized by an extremely low boiling temperature and high thermal conductivity. It is used, for example, as a coolant in space technology and plays a crucial role in refuelling rocket fuels. Accordingly, Boeing, a name traditionally associated with aviation, also relies on helium as an influential player in space technology.

    After the share had started a rally at the end of October, which only ended on December 21, the share price recently fell by over 25%. This was partly due to problems with the aircraft. On one flight, part of the aircraft wall fell out. Boeing 737-MAX production is currently being affected by quality defects. Up to 50 aircraft that have not yet been delivered require repairs due to inaccurately drilled holes in the fuselage. This is causing a loss of confidence, and trust is particularly crucial for aircraft manufacturers. However, the latest annual figures presented on January 31 exceeded expectations despite the current production challenges.

    Although the loss was still around USD 2.2 billion, it is a clear step forward after around USD 5 billion in the previous year. Turnover climbed by 17% to USD 77.8 billion. Due to the quality defects, the increase in production to 50 aircraft of the 737 models per month by 2026 has been put on hold for the time being. The management is currently leaving it open as to whether the Company will be able to return to profit this year. The share, which cost almost USD 260 at the beginning of the year, is currently trading at USD 205.75.

    There are few opportunities to invest directly in helium. Yet, the gas is indispensable for more and more high-tech applications. This gives Royal Helium a unique selling point on the stock market. The Company is already earning money today thanks to the purchase agreement and can generate additional income streams in the future through CO2 certificates and other by-products. Infineon is about to report its quarterly figures, and analysts are waiting for the outlook for the current year. At Boeing the figures are looking up, but the quality deficiencies** have caused the share price to slide. Once the problems have been rectified, the share price could rise again.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author

    Related comments:

    Commented by Juliane Zielonka on February 22nd, 2024 | 07:00 CET

    Royal Helium, Fresenius, BASF: Chemical and Healthcare industry - Where is the next investment opportunity?

    • Helium
    • Healthcare
    • chemicals

    Europe is in the midst of an industrial upheaval due to the Green Deal, which presents both challenges and opportunities for investors. While companies like BASF are arguing for deregulation and increased subsidies to support the green transition, healthcare company Fresenius is undergoing a period of radical change and realignment. The medical technology market is booming. The global MedTech market size amounted to USD 574,002.45 million in 2022 and is expected to increase to USD 814,159.2 million by 2028, with an annual growth rate of 6.0%. Critical raw materials such as helium are in particularly high demand. Royal Helium is one of the producers of this valuable gas and impresses with a well thought-out and sustainable business model. Where does the next investment opportunity lie?


    Commented by Fabian Lorenz on February 20th, 2024 | 08:00 CET

    Sell Varta shares? Nel and Altech Advanced Materials with new opportunities

    • Technology
    • Batteries
    • renewableenergies

    The bad news for Varta seems to be unending. First, a cyber attack paralyzed the Company. Now, analysts are lowering their thumbs and recommending selling the share. Estimates for the years 2024 and 2025 have been lowered. As a result, Altech Advanced is increasingly becoming the German battery hopeful. Even though Altech's share price has declined significantly in recent months, the Company is on track operationally. The current year will be exciting. Things also remain exciting for hydrogen shares. While Nel and Plug Power & Co. still need to prove the future viability of their business models, they are receiving billions in support.


    Commented by Armin Schulz on February 19th, 2024 | 07:15 CET

    Defense Metals, BYD, Rheinmetall - No high-tech technology without this resource

    • Mining
    • RareEarths
    • Technology
    • Electromobility
    • armaments

    In today's technology-driven world, rare earths have become indispensable building blocks for modern high-tech applications. From high-performance electric vehicles, which promise environmentally conscious mobility, to sophisticated equipment in the defense industry, whose importance increases in times of geopolitical tensions - rare earths are everywhere. These elements, often invisible yet crucial, enable the functionality and efficiency of devices and systems used in our daily lives, such as smartphones. Rare earths have become a silent backbone of technological innovation and security policy, whose availability and control can play a decisive role in economic success and strategic superiority.