"From 7,000 Won to 80,000 Won: The Stock That Soared 1,000% in Two Days"

Swarmer Soars on Nasdaq Debut

Warfare and AI Hype Draw Capital Influx, but Valuation Concerns Emerge

U.S.-based AI drone software company Swammer has drawn attention in the market as its share price surged by about 1,000% within two days of its Nasdaq debut. This influx of investment funds is attributed to the convergence of Swammer’s technological prowess—highlighted amid shifting warfare trends—and the rising interest in AI and defense industry themes. However, concerns have also been raised regarding the company's valuation, which many argue is excessive compared to its actual performance, fueling debates over an overheated market.

The AI drone of Swammer is flying. Photo by Reuters Yonhap News

Stock Soars 520% on First Day of NYSE Debut

According to Bloomberg News on the 18th (local time), Swammer, headquartered in Austin, Texas, saw its stock price jump 520% on the first day of listing, followed by an additional 77% increase the next day, settling at the $55 mark (approximately 82,000 won). This is about 10 times higher than the IPO price of $5 (approximately 7,500 won).

Swammer does not manufacture drones itself; rather, it develops "swarm control" software that enables simultaneous operation of multiple drones. This technology allows dozens to hundreds of drones to move as a single system, and even if some drones are shot down, it minimizes the impact on the overall mission.

Notably, this technology is reported to have been deployed in real combat more than 100,000 times on the Ukrainian battlefield since 2023. The market appears to have awarded a significant premium to Swammer, viewing it as "verified AI battlefield technology."

As the nature of warfare shifts from high-cost missile-centric operations to mass deployment of low-cost drones, the importance of software to control these drones has rapidly increased, which is interpreted as another factor driving investor sentiment.

Revenue at 400 Million Won, But Market Cap Hits 1 Trillion Won?

However, many point out that the current share price is excessive compared to the company's fundamentals. Swammer's revenue last year was about $300,000 (approximately 450 million won), a decrease from the previous year, while its market capitalization has reached about $680 million (around 1 trillion won). Its price-to-sales ratio (PSR) stands at over 2,000, an exceptionally high figure even compared to typical growth stocks.

Employees of Swummer are watching the AI drone flight. Photo by Reuters - Yonhap News Agency

Profitability is also weak. Swammer posted a net loss of about $8.5 million (approximately 12.75 billion won) last year. Another risk factor is that a substantial portion of its revenue relies on the Ukrainian battlefield. This heavy dependence on a specific region and ongoing conflict could increase future earnings volatility.

'Expectations or a Bubble?'...Diverging Opinions

Nevertheless, there are factors supporting Swammer’s growth potential. The company has secured a contract backlog of about $16.3 million (approximately 2.4 billion won) that could translate into revenue over the next 12 to 24 months through software licenses, hardware integration services, and system supply. The volume of potential additional orders amounts to $16.8 million (about 2.5 billion won), indicating that Swammer’s mid- to long-term growth prospects remain valid.

Market opinions are divided about the recent surge. Some argue that Swammer is differentiated from simple theme stocks due to its combat-proven AI-based defense technology. On the other hand, others see it as a "speculative rally" fueled by the combination of AI and defense narratives. Ultimately, the company’s valuation is expected to be determined by its future earnings performance.

This content was produced with the assistance of AI translation services.