Palladyne AI Corp (PDYN) On the Cusp of Robust Growth Following Defense Division Formation

Palladyne AI Corp (NASDAQ:PDYN) is one of the best affordable AI stocks to buy now. Palladyne AI Corp (NASDAQ:PDYN) commands a Moderate Buy consensus rating on Wall Street. Analysts have an average price target of $9.50, implying 84.47% upside potential.

On November 17, the company announced the formation of Palladyne Defense to conduct multiple acquisitions. The company acquired GuideTech LLC, Warnke Precision Machining, and MKR Fabricators for approximately $31 million.

The acquisitions come as the AI software developer seeks to become an integrated defense technology company focused on providing avionics, components, and software, along with design and engineering services.

Additionally, the acquisitions will unite the company’s patented embodied AI with UAV and loitering munitions components. They will also deliver revenue-generating assets while supporting the company’s push to support the Department of War’s modernization priorities.

The acquisitions are expected to bolster Palladyne AI’s revenue base, which could triple to $7.8 million by 2026, up from $7.8 million in 2024.  The acquisitions already come with an 18-month backlog of more than $10 million

“This marks a defining inflection point for Palladyne AI. Through the creation of Palladyne Defense, we are transforming from an AI software innovator into a vertically integrated defense technology company,” said Ben Wolff, President and CEO of Palladyne AI.

Palladyne AI Corp. (NASDAQ:PDYN) develops Embodied AI software and hardware for autonomous robots, enabling them to “think, move, and adapt” in real-world settings such as manufacturing, defense, logistics, and aviation. It focuses on allowing the machines to learn and operate independently in dynamic environments without extensive programming.

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Disclosure: None. This article is originally published at Insider Monkey.