Why These Defense Stocks Are Gaining This Week

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1. KWESST Micro Systems Inc. (NASDAQ:KWE)

Weekly Gains: 13.70%

KWESST Micro Systems Inc. (NASDAQ:KWE) is engaged in the development of tactical systems and ammunition for military and security forces. It tops the charts for defense stocks that are gaining this week.

The company’s share price was up 13.70% over the past week after positive recent developments. On February 18, KWESST Micro Systems Inc. (NASDAQ:KWE) reported strong results for the first quarter of fiscal 2025, with a revenue growth of 588% and a gross margin of 45%. The robust performance was driven by DSEF and Land C4ISR government contracts, growth in ARWEN business, and a pilot of the company’s Lightning SaaS product.

On February 21, KWESST Micro Systems Inc. (NASDAQ:KWE) announced the closing of the first tranche of its CAD$3.5 million private placement. The company issued 903,700 common shares and 2,884,179 pre-funded warrants as part of the first tranche.

Overall, KWESST Micro Systems Inc. (NASDAQ:KWE) ranks first among the Defense Stocks That Are Gaining This Week. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than KWE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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