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During 2025, drone technology entered its maturation stage. China advanced this sector the most, outlining tiers of drones for a wide range of purposes. The People’s Liberation Army (PLA) showcased the Jiu Tian (Ninth Heaven) drone mothership with up to 7,000km range, capable of deploying up to 150 drones as AI-integrated swarms.

Warhammer 40,000 enthusiasts could immediately connect it to the Tau faction, which itself was inspired by East Asian cultures. Complementing China’s J-20 superiority fighters, GJ-11 Sharp stealth UCAV is filling the role for deep-strike missions. On the maritime warfare front, the Wing Loong X boosts PLA’s anti-submarine capacity, while CH-7 Rainbow cuts through the fog of war with its deep-penetration reconnaissance capacity, as well as precision strikes in contested airspace.

To accelerate the domestic drone industry, both commercial and military, President Trump signed the executive order “UNLEASHING AMERICAN DRONE DOMINANCE” in early June 2025. Outside of privately held Anduril Industries, Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS) is at the forefront of advanced drone tech, with its XQ-58 Valkyrie.

However, KTOS stock price, at $120, is already well above its average price target, at $108.22 per share. Fortunately, there are other drone stocks worthy of consideration.

Amprius Technologies Inc. (NYSE: AMPX) – 82% Upside Potential

While high-end military drones typically run on traditional jet fuel, most drones are battery powered. There is no better exposure to this increasing demand than Amprius. The company develops high-energy density silicon anode lithium-ion batteries, needed in both air mobility and light electric vehicles.

On average, Amprius SiCore batteries deliver 450 Wh/kg energy density. On the premium end, the company’s SiMaxx batteries deliver 500 Wh/kg. Most recently at CES, the company won the 2026 Best of Innovation award for its top-performing 520 Wh/kg battery, specifically designed for electric aviation.

Amprius keeps its capital expenditures (capex) light, owing to manufacturer contracts in Europe, Asia and South Korea. In its latest Q3 2025 earnings, ending September 30, Amprius reported $21.4 million revenue, more than double from $7.8 million in the year-ago quarter.

While the company is yet to reach sustained profitability, its net loss in Q3 was reduced by nearly 3-fold, at $3.9 million vs $10.8 million in the year-ago quarter. Amprius’ total current liabilities are $16 million against the cash position of $73.2 million.

Over the last 52 weeks, the average AMPX stock price is $6.51 per share, having reached an all-time high at $14.61 mid-October 2025. At the current price of $9.41, AMPX stock trades well below its lowest price target of $16, while its average price target is $17.17 per share, according to the Wall Street Journal’s forecasting data.

Unusual Machines Inc. (NYSE: UMAC) – 28% Upside Potential

According to Drone Industry Insights report, global drone market size is set to reach $57.8 billion by 2030, giving investors a CAGR of 7.9%. While cinematography drones dominate the market, first person view (FPV) drones are becoming increasingly popular for their immersive flying, acrobatics and racing.

Unusual Machines is mainly focused on the FPV drone market, having its own Rotor Riot website after the acquisition of Fat Shark for FPV headsets and Rotor Riot components retailer in early 2024. The company is pursuing aggressive extension of B2B sales of drone components, such as drone motors, flight controllers, analog video systems and electronic speed controllers, as per late 2024 10-K filing.

As a supplier of unmanned aerial system (UAS) components, Unusual Machines is also a part of the Blue UAS framework, providing the National Defense Authorization Act (NDAA)-compliant components. In late 2025, Army’s PBAS (Purpose-Built Attritable System) program selected Unusual Machines’ customers, Envision Technology and Strategic Logix, for Tranche 1.1 (phase of installment).

Employing 82 workers within its Orlando-based facility (expanded in November), the company sees $600 million market opportunity for sub $2,000 small drones for attritable systems. FCC also created an opportunity by mandating U.S. made critical drone components.

As far as Unusual Machines’ financials are concerned, the company missed Q3 revenue Zacks Consensus Estimate by 22.65%, at $2.14 million. In the previous quarter, the company beat revenue expectations by 17.22%. Nonetheless, Unusual Machines reported its first profitable quarter in Q3, with a net income of $1.6 million.

As a relatively new company, having gone public in February 2024, UMAC stock reached its all-time high in October at $17.48 per share. Shareholders had multiple opportunities to lock-in profits after wild price swings over the last year.

UMAC’s current price range, at $15.16, is aligned with the bottom outlook of $15 per share. The average price target for UMAC stock is $19.20 per share.

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