Shares of Ondas Holdings (ONDS) jumped 22.68% on Thursday, fueled by reports that the U.S. government is looking to boost domestic drone production. The initiative, driven by the Trump Administration, aims to provide growth capital to various U.S. drone manufacturers through debt and equity investments, as the military seeks to reduce costs and enhance its drone capabilities on the battlefield.
This push aligns with the Pentagon’s Drone Dominance program, which targets the mass production of over 300,000 affordable combat drones by 2027. The Defense Department anticipates U.S. drone output could reach 100,000 units annually by early 2025, significantly outpacing the production levels seen in Ukraine last year. Although Ondas was not specifically mentioned in the report, its position as a provider of autonomous and counter-drone systems positions it well to capitalize on the increasing demand from the military and allied forces.
Market professionals should note that this development not only enhances Ondas’s growth prospects but also signals a broader trend of increased government support for domestic defense technology, which could benefit other players in the sector.
Source: fool.com