At ten cents a share, putting 1Y gains at around +430%, Nanoveu (ASX:NVU) has been one of the smaller companies on the ASX this year that’s proved it can make the AI thematic work, even if it doesn’t really have anything to do with AI, but instead microchips (which one day might do something more AI-esque).
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What its microchips do do – the company’s tech can be described simply as its ‘EMASS System,’ which it bought in relatively recent history for around $5M, a deal which included a presentation deck chock full of references to AI – instead boosts the performance of small handheld drones, making them stay in the air for longer.
This, the company reports, can be done without having to alter any other part of the drone apart from inserting an EMASS chip.
Without doubt, helping NVU’s rise through CY25 has been that it’s working in Drones, at the same time DroneShield soars to new insane highs; Electro Optic pops on NATO laser sales, and a raft of defence juniors have also enjoyed a rising tide.
But the market’s response on Tuesday could be interpreted in one of two ways. First, what it’s saying: Nanoveu is going to kick off live drone tests using ‘palm-sized nanocopters’ to further validate its findings around the efficiency boosts of the EMASS chip. Shares have dipped around -5% back down to 10cps.
This could be because profit-takers are swooping in, believing NVU could climb yet another 10 cents. That’s entirely possible, and wouldn’t be out of line with the overall Tuesday market, which for all intents and purposes continues to be one mired by envy of Wall Street (at least, it feels that way.)
But it could also be because the market was expecting more. Worth noting in Tuesday’s disclosure was that NVU also described works to improve drone flight path navigation while using its chips, which suggests that maybe the low-power microchips do come with sacrifices to drone operability. Time will tell.
NVU last traded at 10cps today.
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