Issue #60

Everyone is watching the giants. We’re looking at the infrastructure brains and the defense backbone they missed.

The artificial intelligence boom isn’t being won by the loudest models or the flashiest demos — it’s being decided quietly, in the critical infrastructure where "Physical AI" meets the real world and where autonomous commerce happens in an instant. As companies move from experimenting with chatbots to deploying AI that actually moves products and secures borders, two layers matter more than anything else: the autonomous agents that execute transactions and the mission-critical networks that allow AI to operate in the field.

This is where the AI conversation shifts from hype to execution — and where a new generation of high-growth leaders is emerging.

👉 One company is pioneering "Agentic Commerce," turning every digital interaction into a direct sale and rapidly scaling toward a half-billion-dollar revenue run rate.

👉 The other is building the autonomous "eyes and ears" for global defense and industrial giants, backed by a massive billion-dollar war chest and 300% projected growth.

👉 Both have reached critical inflection points, secured major institutional backing, and are becoming indispensable to the industries they serve.

In this edition, we break down the "brain" of retail AI and the "backbone" of autonomous defense — and why these two stocks are positioned to dominate the next phase of the AI-driven economy.

Rezolve AI (NASDAQ: RZLV)

Rezolve AI (NASDAQ: RZLV) is an emerging powerhouse in the "Agentic Commerce" sector, providing a proprietary AI-powered platform designed to bridge the gap between consumer engagement and instant transactions. By leveraging its specialized Large Language Model (LLM), brainpowa, Rezolve enables retailers to transform every digital touchpoint—from social media to physical advertising—into a seamless, conversational shopping experience.

Business Model and Revenue Streams 📦

Rezolve AI operates a high-margin, software-centric model that focuses on automating the retail journey through its Brain Suite. This suite includes Brain Commerce, which facilitates AI-driven product discovery, and Brain Checkout, which streamlines the payment process. The company generates revenue through three primary channels:

• SaaS Subscriptions (ARR): The cornerstone of their business, where enterprise clients pay recurring fees for access to the Brain Suite. Rezolve has shown explosive growth here, moving from nearly zero revenue in early 2024 to a projected $209 million in Annual Recurring Revenue (ARR) by the end of 2025.
• Transaction and API Fees: Rezolve monetizes the scale of its platform by charging fees on the volume of transactions processed. In early 2025 alone, the platform processed over $51 billion in Gross Merchandise Value (GMV), signaling massive adoption.
• Strategic Partnerships: The company leverages "GTM" (Go-To-Market) alliances with tech giants like Google and Microsoft. These partnerships act as a force multiplier, with Google’s sales channels expected to drive over 50% of the company's future revenue.

Macroeconomic Impact:

Rezolve’s business is sensitive to global retail health and digital infrastructure spending. While high interest rates typically dampen tech valuations, the company’s focus on ROI-driven AI (tools that directly increase sales for retailers) makes it a "defensive" tech play. As retailers face rising labor costs and a need for efficiency, Rezolve’s autonomous AI agents provide a cost-effective alternative to traditional customer service and marketing teams.

Recent Performance and Corporate Developments 📈

The company has recently hit several major milestones that have caught the attention of institutional investors.

Recent Financial Highlights: 💰

• Revenue Growth: In the first half of 2025, Rezolve reported a staggering 426% year-over-year revenue increase.
• Profitability Milestone: December 2025 marked a historic turning point, as the company reported its first profitable month, with revenue exceeding $17 million.
• Guidance Hike: In January 2026, management nearly doubled its 2026 revenue guidance to $350 million, citing rapid enterprise adoption and a target of $500 million in ARR by the end of 2026.
• Gross Margins: The company maintains elite software margins, recently clocking in at 95.8%, far exceeding the industry average.

Strategic Initiatives and Mergers: 🤝

While Rezolve has focused heavily on organic growth and partnerships, it has successfully utilized its strong cash position—bolstered by a $250 million capital raise in late 2025—to fund global expansion. A key corporate development is the opening of its Asia Pacific HQ in Singapore, supported by government investment, to capture the growing e-commerce market in the MENA and APAC regions.

Profitability and Fair Value 🎯

Rezolve AI is currently in a high-growth "inflection phase." While it was not profitable on a trailing 12-month basis for most of 2025, its December 2025 profitability proves the model is scalable.

In terms of fair value, the stock presents a classic "growth at a reasonable price" (GARP) opportunity. Many analysts believe the stock is significantly undervalued relative to its projected cash flows. A Discounted Cash Flow (DCF) analysis suggests an intrinsic value of approximately $8.83 per share, which is more than double its current trading price. The company’s low debt-to-equity improvements and massive cash reserves provide a "margin of safety" for long-term holders.

Analyst Estimates and Ratings 📊

• Consensus Rating: Rezolve AI holds a "Strong Buy" consensus. In the last 30 days, the stock has received unanimous "Buy" or "Strong Buy" ratings from all reporting analysts.
• Price Target: Wall Street is highly bullish, with an average 12-month price target of $10.58. Recently, firms like H.C. Wainwright raised their target to $12.00, representing a potential upside of over 190% from current levels.

Investor-Focused Takeaway: Is RZLV Right for Your Portfolio?

Rezolve AI (RZLV) is a high-conviction play for investors who want exposure to the next generation of AI—Agentic Commerce. Unlike generic AI firms, Rezolve has a proven ability to convert AI "hype" into actual enterprise contracts with blue-chip brands like H&M, Gucci, and Adidas.

What to Watch in the Near Term: 📈

• 20-F Filing (March 2026): This will be a major transparency catalyst for the stock and could trigger further institutional buying.
• ARR Milestones: Monitor if the company maintains its pace toward the $500 million ARR goal by year-end.
• Microsoft/Google Integration: Continued deep integration into these ecosystems will determine how fast Rezolve can scale globally.

Recommendation:

Rezolve AI is a Buy for growth-oriented portfolios. While the stock has seen volatility in the past, its recent shift into profitability and its massive upward revision in guidance suggest that the market has yet to fully price in its dominant position in the retail AI infrastructure.

Ondas Holdings (NASDAQ: ONDS)

Ondas Holdings (NASDAQ: ONDS) is a leading provider of private wireless data solutions and autonomous drone systems, positioning itself as a critical player in the "Physical AI" and autonomous infrastructure space. Through its two primary business units—Ondas Networks and Ondas Autonomous Systems (OAS)—the company provides the "brains and brawn" for mission-critical industrial and defense applications.

Business Model and Revenue Streams 📦

Ondas operates a dual-pronged business model that integrates high-tech hardware with proprietary software layers, focusing on sectors where failure is not an option, such as rail, defense, and public safety.

• Ondas Autonomous Systems (OAS): This is currently the company’s primary growth engine. It generates revenue through the sale of autonomous drone platforms like the Optimus System and the Iron Drone Raider (a counter-unmanned aircraft system). The company utilizes a Robot-as-a-Service (RaaS) model, providing recurring subscription-based income alongside upfront hardware sales.
• Ondas Networks: This segment focuses on software-defined wireless broadband technology. It earns revenue by providing private licensed wireless networks for the North American rail industry (AAR). While currently a smaller revenue contributor, it represents a massive multi-year upgrade cycle as railroads migrate to next-generation communication standards.
• Revenue Sources: The company is seeing a massive shift in scale; Q3 2025 revenue surged over 580% year-over-year to $10.1 million. Revenue is largely driven by defense contracts, particularly in international markets like Israel, which accounted for a significant portion of recent sales.

Macroeconomic Impact:

Ondas is heavily influenced by global defense spending and government infrastructure budgets. The current geopolitical climate has acted as a tailwind, particularly for their counter-drone technology. While high interest rates initially posed a challenge for their capital-intensive R&D, the company successfully de-risked its balance sheet with a massive $1 billion direct offering in early 2026.

Recent Performance and Corporate Developments 📈

Ondas is currently in a "step-change" growth phase, transitioning from a pre-revenue R&D firm to a scaled operating platform.

Recent Financial Highlights: 💰

• Record Growth: The company raised its full-year 2025 revenue target to $36 million and established a bold preliminary target of $110 million for 2026, implying a 3x growth trajectory.
• Backlog Expansion: As of late 2025, the consolidated backlog grew to over $23 million, with an additional $18 million in pending acquisitions, providing high visibility for 2026 earnings.
• Profitability Path: Management expects to achieve EBITDA positivity by the second half of 2026, supported by a target gross margin of 50%.

Strategic Mergers and News: 🤝

The company has been on an aggressive acquisition spree to build a "system-of-systems" for defense. Notable recent deals include the acquisition of Sentrycs (cyber counter-UAS technology) and Apeiro Motion (ground robotics). In January 2026, the company announced an "OAS Investor Day" to detail its evolution into a high-growth integrated platform, further signaling its shift toward defense-autonomy leadership.

Profitability and Fair Value 🎯

Ondas is not yet profitable on a GAAP basis, reporting a net loss of approximately $7.5 million in Q3 2025. However, its massive cash injection of nearly $1 billion in January 2026 has fundamentally changed its risk profile, effectively removing "going concern" fears and providing a massive war chest for further M&A.

Regarding fair value, the stock is currently in a high-volatility "discovery" phase. While traditional DCF models suggest an intrinsic value around $14.47 per share, the stock has recently surged past $13.00, meaning it is trading near what many consider its current "fair value." However, if the company hits its $110 million revenue target for 2026, the current valuation could be seen as an attractive entry point for a sector leader.

Analyst Estimates and Ratings 📊

• Consensus Rating: The stock currently holds a "Strong Buy" consensus. In the last 30 days, top-tier firms including Needham, H.C. Wainwright, and Oppenheimer have reiterated "Buy" or "Outperform" ratings.
• Price Target: The average 12-month price target is approximately $12.17, though some analysts have pushed targets as high as $17.00 following the latest revenue guidance hike.
• Institutional Sentiment: There has been a notable increase in institutional interest, particularly following the closing of their record-breaking $1 billion offering in January 2026.

Investor-Focused Takeaway: Is ONDS Right for Your Portfolio?

Ondas Holdings is a high-reward play on the future of autonomous defense and industrial IoT. It is ideally suited for investors who can tolerate the volatility of a "hyper-growth" stock that is just reaching its operational inflection point.

What to Watch in the Near Term: 📈

• Q4 2025 Earnings: Look for confirmation that the company exceeded its $15 million quarterly revenue target.
• EBITDA Progress: Monitor narrowing losses as the company scales toward its 2026 profitability goal.
• AAR Rail Adoption: Any news on the formal rollout of the 802.16t standard for North American railroads will be a major long-term catalyst.

Recommendation:

Ondas (ONDS) is a Buy for investors seeking exposure to the drone and counter-drone defense sector. With a fortress balance sheet and 300% projected revenue growth for 2026, it is one of the most aggressive and well-funded small-cap AI plays on the market today.

Final Take: The Autonomous Brain and the Defense Backbone Powering AI

The AI revolution has moved past the era of flashy demos and entered the era of execution. Scaling AI today requires two fundamental components: software brains that can autonomously close a sale and physical infrastructure that can secure environments without human intervention.

This is where Rezolve AI (RZLV) and Ondas Holdings (ONDS) are carving out high-moat territories.

🤖 Rezolve AI (RZLV) — The Conversational Brain for Global Commerce

• ✔ Proven Scalability: Hit a historic milestone in December 2025 with its first profitable month ($17M+ revenue).
• ✔ Aggressive Targets: Guided for $350 million in 2026 revenue—nearly double the initial market consensus.
• ✔ High-Value Moat: Deep integration with Google and Microsoft ecosystems, serving global titans like Adidas and H&M.
• ➤ Best for: Investors seeking a high-margin software play that is successfully converting AI hype into actual, recurring enterprise revenue.

🛡️ Ondas Holdings (ONDS) — The Autonomous Backbone for Global Defense

• ✔ Fortress Balance Sheet: Just closed a massive $959 million offering, giving it the largest war chest in the drone-tech sector.
• ✔ Explosive Growth: Projected to triple revenue from $36 million in 2025 to over $110 million in 2026.
• ✔ Mission Critical: Dominating the counter-drone and rail-network space where AI reliability is a matter of national security.
• ➤ Best for: Investors wanting "Physical AI" exposure with massive government-backed contracts and a clear path to 2026 EBITDA profitability.

Investor Insight

🧩 Want AI software dominance with 95% margins and 10x growth potential? → RZLV

⚙️ Want heavy-duty AI infrastructure with a billion-dollar safety net? → ONDS

Bottom Line:

Artificial intelligence doesn’t scale on promises; it scales on transactional intelligence and autonomous security. Rezolve AI owns the "brain" of the new digital economy, while Ondas provides the "backbone" for the physical one.

As institutional money shifts from "Big Tech" to the "Foundation Layer," RZLV and ONDS are no longer speculative bets—they are becoming the structural winners of the next decade.

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Happy Trading
​— Team Premium Stock Alerts