Retail investors are looking beyond Nvidia to find long-term investments that will pay off. To find the small names investors believe have potential, we scoured Reddit communities like r/investing and r/stockstobuytoday, where everyday traders swap ideas and dig into stocks Wall Street mostly ignores. One name kept coming up.
Ondas
Ondas Holdings (NASDAQ:ONDS) makes autonomous aerial systems and counter-drone technologies for defense and security customers. Its portfolio includes autonomous aircraft, surveillance and intelligence platforms, ground robots and systems designed to detect, intercept and defeat hostile drones. Its single- platform approach to detect, track, and defeat a threat is its strength.
Ondas recently reported its quarterly results. Revenue rose 85% year over year. Management raised its full fiscal 2026 revenue target. However, the stock fell amid a larger-than-expected loss.
Pro forma backlog hit about $757 million, up 66% from the prior quarter. The two-year sales pipeline jumped to more than $11 billion, up from around $4 billion three months earlier.
A big vote of confidence came from Lockheed Martin. It’s using counter-drone technology from Sentrycs, an Ondas subsidiary, inside its own anti-drone system called Sanctum.
Hedge fund sentiment rose in the first quarter. A total of 34 funds had stakes in the company as of the end of March, up from 29 funds in the previous quarter. However, short interest is high, around 40% of the float. The bigger worry is dilution. Ondas funded roughly $1 billion of acquisitions in under a year, and that took both cash and stock.
There’s execution risk too. Ondas is digesting seven acquired businesses at once, including the $876 million DZYNE deal. The company posted an adjusted EBITDA loss of about $51 million in the quarter, which it called the peak.
Analyst consensus carries price targets in the $17 to $20 range, well above where the stock trades now. Management expects its operating platform to turn profitable by the fourth quarter of fiscal 2026 and the whole company by the fourth quarter of fiscal 2027.
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 the cheapest AI stock.
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