Aeluma: Contracts Fueled Growth, Buy

2025-09-17 11:46:45 ET

Introduction & Investment Thesis

I am rating Aeluma, Inc. (NASDAQ: ALMU ) as a buy driven by contracts with NASA, the Department of Energy (DOE), and the US Navy. These contracts are a major driver of the FY2026 revenue projection of between $4.0 million to $6.0 million from $4.7 million in FY2024. The primary focus of these contracts is that ALMU is offering quantum and sensing technology. The US, through these agencies, is accelerating the development and commercialization of the next-generation quantum and sensing systems. With the rapidly growing AI sector, this also drives growth in robotics, autonomy, aerospace, and quantum computing. When I scale down to quantum and sensing technology, which is the focus of these contracts, I find that the quantum sector is growing at a CAGR of 11%-15% between 2025 and 2040, reaching $45 billion to $131 billion by 2040. This double-digit growth of the sector YoY and the company’s contracts explains why ALMU’s price return YTD of 101.83% is performing above the S&P 500 at 11.95%. This suggests that ALMU is doing better, and these contracts will serve as revenue catalysts in the future, which is why I am rating this stock a buy....

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