Will SEALSQ's (LAES) New Defense Partnership Redefine Its Edge in Post-Quantum Security?

• Trusted Semiconductor Solutions recently announced a strategic partnership with SEALSQ Corp. to co-develop "Made in US" post-quantum cryptography-enabled secure semiconductor solutions for defense and government agencies, aiming to achieve top hardware certifications and compliance with U.S. national security requirements.
• This collaboration integrates SEALSQ's advanced quantum-resistant silicon expertise with TSS's strong defense sector relationships, accelerating SEALSQ's access to sensitive U.S. government markets and reinforcing its "Quantum Corridor" initiative linking innovation hubs across Europe and the U.S.
• We'll explore how SEALSQ's expansion into U.S. defense through this partnership advances its investment narrative around post-quantum secure semiconductors.

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What Is SEALSQ's Investment Narrative?

For shareholders in SEALSQ, the core belief is in the company’s ability to make quantum-resistant semiconductors a standard across global digital infrastructure, especially as cybersecurity and national security concerns climb. The new alliance with Trusted Semiconductor Solutions could accelerate near-term demand, putting SEALSQ products directly into defense and government buyers’ hands and opening the door to lucrative US national security contracts. This could make the US market a bigger near-term catalyst than previously factored, helping reinforce the investment narrative around the “Quantum Corridor” initiative. However, the stock remains highly volatile, and challenges remain: SEALSQ is still unprofitable, has an inexperienced management team, a new board, and is trading at higher valuation multiples than sector peers. Shareholder dilution and an unproven path to sustained profitability also remain central concerns, even with clear growth potential and headline-grabbing partnerships.

But potential risks around profitability and execution remain, so it’s important to consider all the facts. Upon reviewing our latest valuation report, SEALSQ's share price might be too optimistic.

Exploring Other Perspectives

Twenty fair value estimates from the Simply Wall St Community reflect a wide range from US$0.13 to US$100 per share, with opinions split on the company’s future. While some see promise in US market opportunities, others point to sustainability and the significant volatility as meaningful factors shaping SEALSQ’s prospects.

Explore 20 other fair value estimates on SEALSQ - why the stock might be worth less than half the current price!

Build Your Own SEALSQ Narrative

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

• A great starting point for your SEALSQ research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free SEALSQ research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SEALSQ's 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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