Buy this high-flying battery maker as drone demand is set to surge, William Blair says

William Blair upgraded Amprius Technologies (AMPX) to Outperform, citing anticipated robust demand for drones, particularly driven by the Trump administration's strategic focus on domestic drone production for defense. Analyst Jed Dorsheimer expects Amprius, a key supplier of lithium-ion batteries for drones, to convert ongoing evaluations into substantial purchase orders, sustaining momentum despite the stock's over 187% year-to-date surge. Furthermore, the firm highlighted Amprius' manufacturing capabilities in South Korea and potential European expansion as a strategic advantage to mitigate tariff concerns and appeal to military clients.

Analysis

William Blair has upgraded Amprius Technologies (AMPX) to Outperform, citing strong conviction in its growth prospects driven by the defense sector. The primary catalyst is the Trump administration's "Unleashing American Drone Dominance" executive order, which is set to accelerate demand for domestically produced drones. As a critical supplier of high-performance lithium-ion batteries for drones and high-altitude pseudo satellites, Amprius is strategically positioned to benefit from this policy. The analyst, Jed Dorsheimer, anticipates the company is transitioning from product evaluations to securing large purchase orders, which could sustain the stock's significant momentum, even after its 187% year-to-date surge. Furthermore, Amprius's manufacturing presence in South Korea and potential expansion in Europe are seen as key strategic assets to mitigate China-related tariff concerns and supply chain risks, a crucial factor for appealing to military and other government customers.

Key Decisions for Investors

• Investors could consider the analyst upgrade and strong political tailwinds as a signal that the stock's recent momentum may be sustainable, supported by the potential for major contract wins.
• Given the stock has already appreciated over 187% in 2025, it is prudent to monitor for concrete evidence of the anticipated large purchase orders materializing to justify its current valuation.
• The progress of establishing manufacturing capacity in Western-friendly regions should be watched closely, as this is a key factor in de-risking the company from geopolitical tensions and securing sensitive defense-related business.