A little government exposure can go a long way for a business, especially those still in their early phases. Government spending, specifically defense, accounts for approximately 3% of GDP, making it a lucrative industry. While headwinds and hurdles remain, Ondas Inc. (NASDAQ: ONDS) and Amprius Technologies (NYSE: AMPX) are on track to gain improved access to this market, positioning them for significant stock price gains in 2026. In the longer term, government defense spending is on the rise, supporting a robust outlook for this sector and these stocks.
Ondas Inc. Expands Exposure, Set to Accelerate in 2026
Ondas Inc. is well-positioned with its drone and network businesses. The drone side manufactures easy-to-deploy drone-in-a-box systems and the software platforms to operate them. The network side provides secure, private wireless networks for governments and industries, which are important because they can bridge the gap between legacy infrastructure and modern data requirements.
Drivers in 2026 include a number of catalysts, such as Prime Contractor Status for border security, and placement on the Defense Contract Management Agency (DCMA) BLUE UAS Cleared list, which enable rapid, strategic procurement of its drone and counter-drone technology. Among the advantages are the versatility and interchangeability of its drone platforms, as well as its automated, kinetic counter-drone capability.
The impact on the earnings outlook is significant. The company is forecast to grow revenue by more than 570% this year, and the estimates are likely conservative. Longer-term forecasts are also robust and likely conservative, with growth expected to slow to 260% in 2027 and again in the following year. The balance sheet also shows no red flags, as the company is well-capitalized with very low leverage. The likely outcome is that Ondas will outperform the forecasts, sustaining its positive revision cycle over the upcoming quarters and years.
Analysts and institutional trends are bullish, reflecting a market that is accumulating shares. Analyst coverage is modest at eight, not a strong number, but up 300% on a trailing-twelve-month basis, and sufficient for some conviction in the rating. They peg the stock at Moderate Buy, have been lifting price targets in early 2026, and see this stock advancing more than 50% at the high end. Institutions, likewise, show a modest but rapidly improving support base. MarketBeat data show this group owns 37% of the stock, buying on balance at a $7-to-$1 pace, ramping activity sequentially for three quarters, and setting a historic high in Q1 2026.
Amprius Powering U.S. Defense Applications
Amprius Technologies worked hard over the past year to improve compliance with the National Defense Authorization Act. It requires secure, domestic supply chains for defense and security applications, to which Amprius Technologies' batteries are well-suited.
The SiCore batteries provide superior energy density, enabling larger payloads and longer ranges, perfect for unmanned vehicles, man-portable systems, and drones of all varieties and purposes. Meanwhile, its technology has been validated by the DCMA and the Defense Innovation Unit (DIU), which are increasingly relying on Amprius’ product and pointing to its use in a wider array of applications.
Amprius growth is expected to slow in 2026 but remain at a hyper pace above 70%, and to maintain a similar pace over the next three to five years. More importantly, the company is expected to inflect to profitability by the end of 2026 and to improve profitability sequentially thereafter. The company is well-capitalized in 2026, with no red flags on the balance sheet and net cash relative to total liabilities. The catalyst and risk in 2026 are scaling and execution. If AMPX demonstrates an ability to scale along with demand, the stock price is likely to continue rising.
Analyst trends are equally strong. The 2026 guidance update catalyzed six price target increases, putting this stock in the $20 to $21 range. The likely outcome is that upgrades and price target increases will continue as the year progresses, eventually leading to the post-IPO highs just over $26. Institutions are also supportive, buying on balance and accelerating activity, but own only 5% and are not yet a significant force. A more significant force is short interest, which, at 16% as of early March, underpins the stock's price action.
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The article "2 Stocks With Governmental Tailwinds to Drive Them Higher" first appeared on MarketBeat.
