Core Viewpoint - SPARC AI Inc. has launched a fully offline GPS-denied navigation and laser-free target acquisition application on a Tactical Edition smartphone designed for military use, enhancing operational capabilities in contested environments [1][2][3]. Group 1: Product Features - The application maintains continuous navigation and reporting when GPS is unavailable or untrusted, supporting route execution without network connectivity [7]. - It enables camera-based target location generation, allowing operators to record geolocation using the phone camera without the need for a laser range finder [7]. Group 2: Market Strategy - SPARC AI is registering a subsidiary in the United States to facilitate participation in U.S. defense procurement pathways, aiming to strengthen its market presence [4]. - The Tactical Edition smartphone is typically procured through government and enterprise channels, indicating a focus on specialized markets rather than public retail [2]. Group 3: Company Background - SPARC AI designs high-tech solutions for GPS-denied environments, including an innovative Target Acquisition System and Autonomous Flight solution for drones that do not rely on complex hardware or software [5].

Core Insights - D-Wave Quantum Inc., Davidson Technologies, and Anduril Industries have collaborated to develop quantum-classical hybrid applications for U.S. air and missile defense, demonstrating significant improvements in performance over classical methods [1] Group 1: Collaboration and Technology - The collaboration aims to address complex missile-defense planning challenges using a hybrid approach that combines Anduril's defense simulations, Davidson's modeling expertise, and D-Wave's quantum computing technology [1] - Initial proof-of-concept results showed D-Wave's Stride hybrid solver achieved at least 10x faster time-to-solution compared to classical-only methods, with a 9% to 12% improvement in threat mitigation [1] Group 2: Future Plans and Applications - The companies plan to expand their collaboration to tackle other large-scale defense optimization challenges, including contested logistics, scalable manufacturing, cyber defense, and action generation [1] - D-Wave's CEO emphasized the importance of applying quantum computing to national defense strategies, highlighting its potential for faster and more informed decision-making [1]

Core Insights - Lantronix Inc. has entered into a Memorandum of Understanding and a Master Services Agreement with Safe Pro Group Inc. to develop and commercialize Qualcomm-based edge compute solutions for real-time threat detection in drones and unmanned systems without relying on cloud connectivity [1][2] Group 1: Partnership and Technology Integration - The partnership aims to integrate Safe Pro's Object Threat Detection AI algorithms with Lantronix's Qualcomm-based Open-Q™ System-on-Module solutions, enhancing real-time detection capabilities for threats like landmines [2][12] - This collaboration will support various defense and commercial drone programs, including the U.S. Army's Short-Range Reconnaissance program utilizing Red Cat Holding's Teal Black Widow™ quadcopters [3][12] Group 2: Market Potential and Growth Opportunities - The global drone market is projected to reach $57.8 billion by 2030, presenting significant growth opportunities for Lantronix in the secure defense and commercial drone segments [4] - The partnership is expected to create scalable revenue opportunities through AI compute modules and defense-grade deployments, reducing commercialization risk and time to market [12] Group 3: Product Features and Capabilities - Lantronix's Open-Q™ 5165RB System on Module is designed for AI-enabled drones, featuring advanced connectivity and processing capabilities, making it suitable for various applications including object detection and autonomous systems [5][8] - The system supports on-device AI processing, achieving 15 TOPS (Tera Operations Per Second), which enhances its efficiency for real-time intelligence applications [8]

Group 1 - The Trump administration is taking actions against perceived enemies, including Booz Allen, despite the company's contributions to a significant project costing over $400 million [1] - Booz Allen is a major player in the defense and national security technology sector, holding extensive contracts with various government agencies such as the Defense Department and Homeland Security [1] Group 2 - In 2024, a former IRS contractor associated with Booz Allen was sentenced to five years in prison for leaking sensitive tax information related to Trump [2]

Core Insights - VisionWave Holdings and SaverOne have entered into a strategic Exchange Agreement to develop an RF-based defense and security technology platform [1][2] - The transaction involves $7.0 million in staged equity consideration and aims for a three-stage equity exchange and collaboration [2] - VisionWave may acquire approximately 51% of SaverOne, subject to milestones and regulatory approvals [3] Financial and Structural Details - The agreement allows VisionWave to appoint one director to SaverOne's Board initially, with the potential for additional appointments based on milestone achievements [3] - The collaboration is structured to enhance SaverOne's VRU platform with RF sensing and AI-driven analytics [4][5] Technological Development - The integrated platform aims to address concealed and non-line-of-sight threats, enhancing capabilities in environments where traditional sensing systems are limited [5][6] - The strategic collaboration seeks to combine VisionWave's RF sensing and AI technologies with SaverOne's engineering and commercialization capabilities [6] Governance and Approval - The transaction has been unanimously approved by the Boards of Directors of both companies, following an independent fairness opinion [7] - The entire transaction is subject to the approval of SaverOne's shareholders [7] Leadership Commentary - VisionWave's Executive Chairman emphasized the goal of developing a focused RF defense platform to operate where traditional technologies reach their limits [8] - SaverOne's CEO highlighted the agreement's potential to position the company as the operational center for a scalable RF-based defense platform [9]

Core Viewpoint - Elbit Systems has been awarded a $228 million contract by General Dynamics Ordnance and Tactical Systems to supply its Iron Fist Active Protection System over a three-year period, following a previous contract awarded in May 2024 [1][3]. Group 1: Contract Details - The contract is for the Iron Fist Active Protection System (APS), which is designed to enhance the survivability of armored platforms against modern battlefield threats [2]. - The Iron Fist APS provides 360-degree protection against various anti-armor threats, including Anti-Tank Rockets, Anti-Tank Guided Missiles, Unmanned Aerial Systems, loitering munitions, and Kinetic-Energy tank ammunition [2]. Group 2: Company Background - Elbit Systems is a leading global defense technology company, employing approximately 20,000 people across five continents and reporting revenues of $1,922 million for the three months ended September 30, 2025 [5]. - The company has an order backlog of $25.2 billion as of September 30, 2025, indicating strong demand for its products and services [5]. Group 3: Leadership Statement - Bezhalel Machlis, President and CEO of Elbit Systems, emphasized the technological edge of the Iron Fist APS and the strategic partnership with GD-OTS and the U.S. Army, highlighting the trust placed in the company to enhance the survivability of American troops [4].

Core Insights - Rocket Lab has shown significant stock performance, with a 360% increase in 2024 and 174% in 2025, turning a $10,000 investment three years ago into $186,880 [2] - The Defiance Drone and Modern Warfare ETF (JEDI) is recommended as a better investment option, providing exposure to Rocket Lab and other companies in related industries [3][15] Company Overview - Rocket Lab specializes in launch services, rockets, space vehicles, and satellite equipment, becoming a key player in both U.S. and international space programs [2] - The company has secured substantial contracts, including an $816 million contract for missile-tracking satellites and a $515 million contract for a satellite communications network for the U.S. military [12] ETF Details - The JEDI ETF focuses on companies involved in military drones, AI-driven warfare, space products, military robotics, and cybersecurity, with at least 50% of revenue coming from these sectors [5] - Rocket Lab is the top holding in the JEDI ETF, accounting for 8.66% of the fund, which includes 26 stocks with a maximum 10% weighting per stock to ensure diversification [6][7] Performance Metrics - The JEDI ETF has shown strong performance, with Rocket Lab's one-year performance at 180.8%, while other top holdings like Saab AB and Kratos Defense have outperformed Rocket Lab [7][8] - The ETF's expense ratio is 0.69%, which is considered reasonable given the potential returns [15] Market Context - The U.S. defense budget is projected to increase from $900 billion in 2026 to $1.5 trillion in 2027, contributing to the profitability of Rocket Lab and other companies within the JEDI ETF [14]

Last week, we told you about how the Israeli tech sector has fared in the wake of the war in Gaza. This week, we focus on the defense tech industry specifically, and how it's been affected by over 150 countries around the world speaking out against Israel for the way it has prosecuted the war, with some imposing sanctions. [Alarms blaring] [Gunshots] Westin: It was a war born out of the worst terrorist attack in Israel's history, and the ensuing conflict left tens of thousands dead with much of Gaza in ruin ...

Chrystia Freeland is former Deputy Prime Minister and Foreign Secretary of Canada, and recently became an unpaid economic advisor to the Ukrainian president. She was there for the Trump-Zelensky meeting. So, Chrystia, you spent the week in Davos, in part as an unpaid economic advisor to President Zelensky of Ukraine. He had a meeting on Thursday with President Trump. Did you get a readout on that meeting and how it was perceived? -So, I'm not speaking for Ukraine, David. But as, let's say, as a friendly obs ...

Group 1 - Teledyne Technologies (NYSE: TDY) is experiencing a strong market rally characterized by three consecutive large green candles and rising trading volume, indicating strong investor support and potential for further price increases [2][3] - The company's recent quarterly results showed a revenue growth of 7.3% to $1.61 billion, with Aerospace & Defense segment growing over 40%, supported by new contracts and strong performance in Digital Imaging and Instrumentation [6] - Analysts have a positive outlook on Teledyne, with all six covering the stock rating it a Buy, and expectations for bullish revisions to price targets as the stock trades near consensus levels [5] Group 2 - Teledyne's adjusted operating margin improved by 120 basis points, leading to a 14% increase in adjusted earnings, significantly exceeding expectations by approximately 800 basis points [7] - The company has improved its revenue and earnings outlook for the coming year, alongside a robust capital expenditure plan that supports long-term growth while maintaining financial health [8] - Financial highlights include reduced debt, a 10% increase in equity, and a low leverage ratio with total liabilities approximately 0.3 times equity, indicating a strong balance sheet position [8]