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 André Will-Laudien on June 17th, 2024 | 06:45 CEST

    Acute threat? Armaments and high-tech in the crosshairs: Aixtron, Almonty Industries, Rheinmetall and Hensoldt

    • Mining
    • Tungsten
    • hightech
    • Defense
    • armaments

    The recent European elections have enabled the conservative camp to make significant gains. Undoubtedly, a whole bouquet of issues has led to the so-called "shift to the right". In times of war, however, the neutral observer may not be surprised that the self-proclaimed peace parties, represented by the colours red and green, have lost considerable ground. After all, the competence for peacemaking and security in Europe tends to be found in the conservative camp. The capital markets currently favour high-tech and armaments, orders are booming, and growth is assured for years to come. It is now crucial for stock market players to take a closer look at these sectors, as the high-yield performers of the first half of the year appear to be correcting more strongly. What will happen here in the medium term?


    Commented by Fabian Lorenz on June 6th, 2024 | 07:15 CEST

    Invest in these stocks now! BYD, Varta, Royal Helium!

    • Helium
    • Electromobility
    • renewableenergies
    • armaments
    • Defense

    Those who invest in latecomer stocks now could be rewarded. After all, the high-flyers of 2024 from the fields of artificial intelligence and armaments are anything but cheaply valued. Here are three stocks that could be worth buying now, at least at first glance. BYD has bucked the industry trend by publishing positive sales figures, is making progress in autonomous driving, and analysts are optimistic. Those looking to benefit indirectly from the boom in armaments or quantum computers should consider Royal Helium. A capital increase has injected fresh money into the Company's coffers, and the helium producer can take off again. And what about problem child Varta? The struggling battery manufacturer has found a new CEO, but the old problems remain.


    Commented by André Will-Laudien on May 28th, 2024 | 07:00 CEST

    The high-tech party à la Nvidia continues! Super Micro Computer, MGI, GameStop and Alphabet in focus

    • hightech
    • Media
    • Digitization
    • AI

    Another new NASDAQ all-time high! Meanwhile, things did not look so good the day after the Nvidia figures. The market collapsed by 400 points in just 5 trading hours, but thanks to well-known protagonists, it recovered surprisingly quickly. High-tech investors are currently trading the big growth fantasy of "artificial intelligence" and are patiently waiting for an interest rate signal from the FED. Before then, there will likely be some relief from the ECB. This is because economic development in Europe is not progressing due to Germany's pronounced weakness as a business location. High inflation and the entrenched capital market interest rate are cited as obstacles. This is putting pressure on consumers' budgets. Despite all the prophecies of doom, some business models offer good growth even in challenging economic situations. We provide an insight.