Is ONDS a good stock to buy? We came across a bullish thesis on Ondas Inc. on The Optimus Letter’s Substack by The Optimus. In this article, we will summarize the bulls’ thesis on ONDS. Ondas Inc.’s share was trading at $9.65 as of June 9th. ONDS’s trailing and forward P/E were 107.17 and 55.25 respectively according to Yahoo Finance.
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Ondas Holdings (ONDS) is being positioned as an emerging vertically integrated AI-enabled defense and autonomous security platform, though the market still values it like a speculative small-cap despite rapidly evolving fundamentals. Trading near $9, it has assembled through acquisitions a multi-layered ecosystem spanning ground robotics, counter-drone systems, stratospheric surveillance, and secure private wireless communications.
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Its Sentrycs subsidiary has emerged as a key counter-UAS asset with non-jamming, non-kinetic interdiction, earning selection to help secure major venues for the 2026 FIFA World Cup across North America, creating powerful global reference value. The acquisition of 4M Defense adds robotic demining and border security exposure tied to large Israeli defense initiatives, while World View Enterprises extends capabilities into stratospheric ISR. A strategic partnership with Palantir strengthens AI orchestration across domains and Ondas Networks anchors the stack with secure communications, forming an end-to-end defense ecosystem.
Financially, Ondas reported 2025 revenue of $50.7 million, up 605% year over year, with margins expanding to 40%, and guides to at least $375 million in 2026 supported by backlog and capital inflows. Liquidity is strong with about $594 million in cash plus nearly $960 million raised and minimal net debt.
Analyst sentiment is uniformly bullish with Strong Buy ratings and $20–$22 targets implying meaningful upside. The investment thesis centers on rerating fragmented assets into a unified defense platform as contracts, deployments, and partnerships scale despite significant operational complexity already being managed effectively across segments today at scale. Key risks include dilution, aggressive execution targets, and lack of near-term profitability.
Previously we covered bullish thesis on Kratos Defense & Security Solutions, Inc. (KTOS) by Kooky_Lime1793 in January 2025, which highlighted hypersonic defense contracts, autonomous drones and defense innovation. KTOS stock price has appreciated by approximately 96.39% since our coverage. The Optimus shares a similar view but emphasizes Ondas Holdings vertically integrated defense platform and acquisitions versus contract-driven growth.
Ondas Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held ONDS at the end of the first quarter which was 29 in the previous quarter. While we acknowledge the risk and potential of ONDS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ONDS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
