HPQ Silicon: Many Strings to Its Bow
The Canadian company’s investment story is characterized by a rare combination of materials technology, battery research, and industrial process innovation. Among other things, the company focuses on plasma-based processes for the production of fumed silica, a high-purity industrial material used in cosmetics, pharmaceuticals, and numerous specialty applications.
At the beginning of the year, HPQ reached an important commercialization milestone with an order for 50 kg of plasma-produced fumed silica. Furthermore, the recently signed joint venture MoU for a commercial fumed silica plant is a significant development. Together with an industry partner, who is also expected to provide financing, a production facility with an annual capacity of 1,000 tonnes is planned.
At the same time, the Canadians are working on silicon anode materials for silicon-ion batteries through their stake in the French company Novacium, which they recently increased from 28.4% to 36.8%. In addition to battery materials, Novacium is also developing hydrogen technology based on special silicon-aluminum alloys. Silicon is superior to graphite due to its significantly higher storage capacity. However, the challenge remains that silicon expands and contracts significantly during charging and discharging, leading to material fatigue, capacity loss, and a shortened battery life.
This is where Novacium comes in, developing silicon-based materials that leverage the advantages of silicon while minimizing its typical drawbacks. The goal is to enable batteries with higher energy density. The test results with so-called 21700 cells received particular attention. This format is used in numerous applications today. Here, Novacium was able to outperform the industry standards with capacities of over 6,600 mAh and 7,000 mAh, respectively.
Novacium recently signed a Letter of Intent (LOI) with GH Technologies to evaluate and potentially supply GEN4 lithium-ion cells and batteries in Asia. This represents a crucial step toward tapping into the vast Asia-Pacific market. It was also announced that Novacium, together with its partners LN Innov’ and Groupe Zekat, will unveil a new integrated drone propulsion system (IDPS) at the major industry trade show Eurosatory. Here, too, a large and dynamically growing market is being addressed. Currently, the company is valued at approximately CAD 78 million at a share price of around CAD 0.16.
Infineon: How Far Will the Price Correction Go?
While HPQ Silicon addresses the materials base, Infineon is at the center of technological implementation. The German company is one of the world’s leading manufacturers of power semiconductors. Power semiconductors perform the critical task of regulating and controlling electrical energy.
After the stock more than doubled since the start of the year, a slight correction has recently set in. Analysts recently raised their price targets further, with some exceeding the EUR 100 mark. However, voting rights notifications indicate that a supervisory board member and institutional investors took advantage of the high prices to sell.
Nevertheless, the long-term growth trends for chip manufacturers and AI players remain intact. Analysts repeatedly point out that the general public simply underestimates the growth momentum of AI.
Siemens Energy: Analysts Are Bullish
The group is undisputedly one of the world’s leading providers of energy infrastructure. Business is booming and spans everything from power transmission lines and grid technology to gas turbines, hydrogen solutions, and offshore grid connections. Based on bright prospects, the company significantly raised its medium-term targets a few months ago.
The share buyback program, which runs through the end of fiscal year 2027/28 and has a volume of EUR 6 billion, was recently accelerated. The stock has fallen significantly from its April high. With the share price currently around EUR 150, analysts see upside potential of over 30%. The average target price is EUR 195.
HPQ Silicon is positioning itself in several future-oriented markets with its business approach: battery materials, energy storage, hydrogen technology, and high-performance materials. A growing number of orders and partnerships underscore the momentum of the expanding business. The company’s valuation still has significant room for growth. Analysts are also bullish on Infineon and Siemens Energy.
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