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This American Drone-Motor Company Is Positioned For "Massive Procurement Tailwind"
Looking at the state of modern warfare, H.C. Wainwright analyst Amit Dayal initiated Unusual Machines with a "Buy" rating, telling clients the drone-part maker is emerging as a key player in "anchoring the US drone industry's sovereign supply chain."
Dayal called UMAC a "pure-play, American-made, NDAA-compliant drone-component manufacturer" that is perfectly positioned for a "massive procurement tailwind" across the US drone industry as the US government races to stockpile everything from one-way attack drones to interceptor drones.
What's key about UMAC is that it makes NDAA-compliant parts for drones. Its product portfolio spans flight controllers, electronic speed controllers (ESCs), analog video systems, FPV headsets, drone motors, and, pending the Upgrade Energy acquisition, batteries, with multiple products approved on the Blue UAS Framework.
Dayal estimates the US-made drone parts market could reach $3 billion to $5 billion as the Department of Defense and US drone manufacturers seek secure alternatives to Chinese suppliers.
US Drone Parts Market Forecasted to Boom
Six UMAC components, including its Brave F7 flight controller, Brave 55A speed controller, and Aura FPV camera, have been approved for the Defense Innovation Unit's Blue UAS Framework.
The top catalyst is the DoD's roughly $1 billion Drone Dominance program, which is intended to rapidly expand the US inventory of small, inexpensive, and attritable drones.
The first procurement phase covers about 30,000 drones, while the next phase is expected to order roughly 60,000 systems during the second half of 2026. Additional phases could drive demand for approximately 250,000 drones in fiscal 2027. More than half of the initial vendors selected for Drone Dominance were already UMAC customers in some capacity, according to Dayal.
"A massive procurement tailwind underpins a multi-year unmanned-systems cycle," the analyst said, adding that UMAC is "building a vertically integrated, 'Made in the USA' component platform."
Cost to Buld a FPV
UMAC operates across 62,500 square feet at five manufacturing sites and its Orlando headquarters. The company's 17,000-square-foot motor facility began operating in October 2025 and was producing about 15,000 motors per month by March, with production forecasted to reach 100,000 motors per month later this year.
Global Drone Market Forecast
Global Drone Parts Market Forecast
Dayal has a 12-month price target of $42 on UMAC. Analysts tracked by Bloomberg have an average target of $36.
Shares were trading around $20 on Wednesday morning.
In the previous report, we focused on AeroVironment, Ondas, Red Cat, AEVEX, Redwire, Insitu and Teledyne FLIR. Private companies covered included Anduril, Skydio, Shield AI, Quantum Systems, Performance Drone Works, DZYNE, Firestorm Labs, and Neros.
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"Closing Time" On The AI Bubble Is Sooner Than Most Think; Ed Dowd Warns Iran War Brings Global Recession Closer
Via Greg Hunter’s USAWatchdog.com,
Wall Street money manager and financial analyst Ed Dowd of PhinanceTechnologies.com warned at the end of May we could see “$250 a barrel oil and 11% inflation as a worst-case scenario in 2026.”
That didn’t happen... yet. Dowd explains, “We had two scenarios when we talked last..."
" One was the conflict would get resolved in the April – May time frame.
Oil would peak out around $125 (per barrel), and inflation would peak out in May and go lower.
That’s what happened, but recently, MOU (Memorandum of Understanding with Iran) has been torn up and oil is back on the rise.
Oil collapsed to around the low $70s to high $60s after the MOU. It’s now $80 and change.
So, unless this is resolved quickly, the other scenario is on the table...
If the conflict continues and gets worse, and you want to watch it progress, if we break out technically, meaningfully to $100 to $125, and back test and hold support, then the next level is $200 to $250 a barrel.
All we are talking about here is my thesis that we are going into a global recession, and it gets pulled forward that much quicker. We will have a burst of inflation and massive demand destruction.”
The Iran/US war is not the only headwind Dowd sees.
AI (artificial intelligence) investment is in bubble territory according to Dowd, and the lights are about to go out on that trade. Dowd says:
“The stock market is 45% AI and AI adjacent.
When the equity market figures out the party may be slowing or it’s over, that will affect the stock market.
It’s a feedback loop that I think is beginning. Let’s call it the AI summer of discontent...
Closing time is closer than most people think. The party has been going on for a while.
We had this huge impulse in semiconductor stocks in April and May. The indices have 17% to 19% of the S&P 500, the semiconductor index.
That is a warning sign in and of itself. This is a notoriously cyclical boom and bust industry... There is inflation going on in this... AI build.
All the projections of return on investment are going the way of the dodo bird because they are now paying exorbitant prices for commodity memory chips. Also, power costs are going up, and they have to build power plants. The whole math does not work with the AI infrastructure in the credit driven AI complex.
So, the math kind of implodes on itself at some point...
I think the party is closer to the end than the beginning, and closing time will be upon us soon.”
When the AI bubble pops, Dowd expect a “nasty pullback in the stock market.”
This is why Dowd is telling investors to raise cash levels just like famed investor Warren Buffett is doing by holding record amounts of cash in his fund. Dowd says, “Cash is dry powder.”
And for those who think the US dollar is going to tank, Dowd thinks just the opposite and says, “The dollar looks quite bullish.”
Dowd still likes gold as a core asset, and his target price is unchanged at $10,000 per ounce in the next few years.
There is much more in the 34-minute interview.
Join Greg Hunter of USAWatchdog as he goes One-on-One with money manager and investment expert Ed Dowd as he explains why he is still seeing big trouble for the US economy. Dowd predicted this was coming in January with his report called “US Economy Outlook 2026.”
To get Dowd’s latest red-hot reporting, go to his new Substack called “Ed Dowd: Beyond the Narrative,” by clicking here.
Tyler Durden Thu, 07/23/2026 - 11:10