Space Hype, Raw Material Shortages, and the Chip Boom: A Look at OHB, Strategic Resources, and Infineon

OHB: Space Hype in Bremen

OHB shares are the high-flyer par excellence in Germany. As recently as the end of 2024, the shares were trading around EUR 50. "Otto Hydraulik Bremen" was considered more of a bore on the German stock market. In 2023, the founding Fuchs family felt disappointed by the stock's market valuation and, according to media reports, discussed a "going private" move. Today, that seems like the calm before the storm. The stock has increased fifteenfold over the past three years. It is being hyped in online forums, with SpaceX providing the background noise. That is because the IPO of Elon Musk's space company is electrifying many retail investors here as well. The target valuation is USD 1.75 trillion. In total, Musk aims to raise USD 75 billion. It would be the largest IPO of all time, and there is little reason to believe it will not succeed.

But just as with the hype surrounding SpaceX, one should also consider OHB's valuation. OHB recently reported its figures for the first quarter of 2026: total revenue rose by 15% to EUR 279.3 million. The bottom line is that the Bremen-based company earned EUR 9.9 million, a 150% increase. If you extrapolate the earnings per share (EUR 0.52) to a full year, that would result in a P/E ratio of around 300. But OHB shares are not trading on the present—they trade on the future. As a result, the order backlog reached a new record level of EUR 3.354 billion as of the end of March, a substantial increase of 45% compared to the previous year. In addition to aerospace, the company is also benefiting from deals in the defence sector (Rheinmetall, Helsing), where funds are currently flowing freely, particularly in Europe. With this in mind, the high valuation is put into perspective once again.

Since OHB has delivered operationally so far and SpaceX is likely to further fuel the hype in the coming weeks, the rally in OHB could continue for a while longer, and the current market capitalization of around EUR 11.55 billion may not be the final word. But one thing is also clear: OHB is "priced for perfection." If there is ever an operational setback or the sector's hype subsides, profit-taking could occur quickly. Investors who have not yet invested should definitely keep this in mind before getting in!

Strategic Resources: Iron Pellets for the Steel Giants

The tariff war instigated by Trump against both friends and foes is also having a significant impact on the steel, iron, and coal industries. Who can still deliver reliably, long-term, and sensibly today? And at a high quality? This applies not only to the steel sector but also wherever strategic metals like vanadium or titanium are in demand. This is the geopolitical landscape in which the resource explorer and developer Strategic Resources operates. With BlackRock, it possesses a deposit that combines high-purity iron with titanium and vanadium. Furthermore, the project is located in the Canadian province of Québec, where there is cheap, clean hydroelectric power (industrial rate: USD 0.04) and an established mining infrastructure.

But Strategic Resources aims to be more than just a raw materials company. The BlackRock project is only the beginning. In addition to the exploration and mining of the minerals, a processing plant is already located on the property. Blackrock stands out due to its unique geology. The ore there is a vanadium-titanium-magnetite. The high-purity iron is essentially a byproduct of the processing. Consequently, prices on the world market are higher than for standard material. According to its feasibility studies, Strategic Resources expects an annual production of 526,000 tons of pig iron. The next step is the production of processed iron pellets. That is why management plans to build a pelletizing plant in the port of Saguenay, Québec. The facility is expected to produce 4 million tons of iron pellets annually. These are so-called Direct Reduction (DR) grade pellets. They are necessary for modern electric arc furnaces in the steel industry to produce clean "green steel." The major advantage is the location. Saguenay has a deep-water port that can supply both the US and European markets via the St. Lawrence River.

Partner Javelin Provides Security and Funding

To finance these projects, Strategic Resources has brought on a major partner, Javelin Global Commodities. Until production begins at BlackRock, Javelin will exclusively supply Strategic Resources with high-grade iron ore. This is necessary as the raw material for the planned pellet plant. In addition, the partner will purchase and market 100% of the iron pellets produced, as well as future pig iron from the BlackRock project, which provides Strategic Resources' investments with a high degree of economic security. Last but not least, Javelin is also providing significant financial backing for the project and has granted Strategic Resources a USD 150 million working capital credit line.

Now, Strategic Resources wants to take the next step. Although the market capitalization currently stands at only around CAD 18 million, the company plans a capital increase of CAD 10 million. Accordingly, up to 40 million shares are to be placed at CAD 0.25. As an added bonus for investors, there is also a warrant (exercise price: CAD 0.40). What is striking is that the stock is currently trading well above the placement price, which is a strong signal from the market. The funds are needed for the final planning stages of the pelletizing plant's construction. Long-term investors will find in Strategic Resources a stock that is ideally positioned in this geopolitical environment to become a major corporation.

Infineon: An All-Time High Beckons

Infineon went public on March 13, 2000. From an issue price of EUR 35, the stock doubled to EUR 70 at the start. Just three months later, the Siemens spin-off stock was trading at EUR 93.40—an all-time high that remains today. But then came the complete crash—first, the bursting of the dot-com bubble, then the financial crisis. In 2009, the stock became a penny stock, with the price falling below EUR 1.

But those days are long gone. Infineon's share price recently surpassed the EUR 70 mark, marking a decade-high. It is still about 20% away from its all-time high. The rapid rise began in September 2025, and since then, the stock has roughly doubled. And the second-quarter figures also confirm the trend from an operational perspective. Revenue improved by 6% to EUR 3.8 billion, and earnings per share rose from EUR 0.18 in the same quarter of the previous year to EUR 0.23. The figures were very solid overall, but the outlook is what really drove the stock higher. Infineon has a significant order backlog of around EUR 25 billion. According to management, some customer orders extend well into the next fiscal year. The main driver is AI data centers. The demand for power management chips for artificial intelligence is enormous; CEO Jochen Hanebeck described the demand as "extremely robust." Even though things are not going quite as well in the other division, Automotive, Infineon has raised its 2026 annual forecast. "Significant" revenue growth to over EUR 16 billion is now expected. In addition, free cash flow is now projected at EUR 1.65 billion, up from the previous estimate of EUR 1.4 billion.

Shares of Infineon are expected to continue their upward trend. As long as the AI boom in the US persists, the stock will ride the wave. Analysts remain broadly bullish on the shares and are almost unanimously recommending investors to buy in. Most recently, JPMorgan issued a positive assessment of the European semiconductor sector, citing a favourable market environment amid low inventory levels. In particular, inventories of memory components were described as "very lean." As a result, JPMorgan continues to rate Infineon Technologies as "Overweight."

OHB is currently riding the SpaceX hype, but this comes with a high valuation. The IPO of Musk's company should provide further momentum for the Bremen-based firm. At Strategic Resources, the current financing round demonstrates market confidence. With high-purity iron and cheap electricity, the Canadians could soon step into the stock market spotlight. Infineon is showing strength both operationally (AI!) and on the charts. Analysts are bullish, and the chips are in high demand. It would be typical for the stock market if the stock were now aiming for its all-time high from the year 2000!