Can Amprius Technologies’ (AMPX) UAV Battery Win Hint at an Edge in Electric Aviation?

• Empirical Systems Aerospace, Inc. (ESAero) has selected Amprius Technologies' SiCore SA08 high-power silicon battery cell for integration into battery packs powering unmanned aerial vehicles (UAVs) in defense, security, logistics, and public safety sectors, according to a recent client announcement.
• This collaboration highlights growing adoption of Amprius’ advanced battery technology within demanding UAV applications, reinforcing the company’s expanding role in next-generation electric aviation markets.
• We'll now assess how ESAero's choice of Amprius' SiCore SA08 battery cell shapes the company's investment narrative and growth outlook.

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Amprius Technologies Investment Narrative Recap

To be a shareholder in Amprius Technologies, one needs to believe in the company's ability to capitalize on rapid electrification across aviation and drone sectors, driven by rising commercial drone adoption and demand for high-performance batteries. While the recent ESAero partnership highlights customer traction, it does not materially alter the most important short term catalyst, scaling up SiCore cell production to meet volume orders and reduce losses. The biggest risk remains Amprius' revenue concentration in aviation and drone markets, leaving its top line sensitive to shifts in sector demand and procurement cycles.

Among recent announcements, the September $35 million SiCore cell order from a leading UAS manufacturer is most relevant here, reinforcing that growing production orders are key to near-term growth and the company’s move from pilot contracts to ongoing supply agreements. This underlines the significance of Amprius’ ability to fulfill large-scale orders, a capability still reliant on timely manufacturing ramp-up and dependable supply chain operations.

By contrast, investors should also keep in mind the ongoing exposure to sector demand fluctuations and what could happen if a contract or end-market slows...

Read the full narrative on Amprius Technologies (it's free!)

Amprius Technologies’ narrative projects $306.6 million revenue and $13.4 million earnings by 2028. This requires 89.8% yearly revenue growth and a $52.1 million earnings increase from -$38.7 million today.

Uncover how Amprius Technologies' forecasts yield a $14.67 fair value, a 29% upside to its current price.

Exploring Other Perspectives

Fair value estimates from nine Simply Wall St Community members range widely from US$4.77 to US$28.91 per share. While views differ greatly, many are weighing the company's dependency on aviation and drone sector demand, which could lead to substantial revenue swings.

Explore 9 other fair value estimates on Amprius Technologies - why the stock might be worth less than half the current price!

Build Your Own Amprius Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Amprius Technologies research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Amprius Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Amprius Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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