Ondas Inc (NASDAQ:ONDS) shares are surging Thursday morning as traders lean into defense-and-drones optimism and a risk-on pocket of small-cap momentum. The move tracks with a broader theme around Pentagon support for domestic drone supply chains.

What’s Driving Ondas Stock Higher Today?

A Wall Street Journal report described months-long Pentagon discussions with drone firms through the Office of Strategic Capital, including proposals that could mix debt and equity financing and potentially give the U.S. government direct ownership stakes in selected drone makers.

This policy shift directly feeds into the administration’s fiscal 2027 defense framework, centered on the Pentagon’s “Drone Dominance” initiative to deploy roughly 300,000 low-cost attack drones by the end of 2027.

Because Ondas has aggressively scaled its autonomous defense tech capabilities, most recently finalizing a $196.6 million acquisition of military software developer Omnisys Ltd, investors appear to be are flocking to ONDS as a primary vehicle poised to capture this massive wave of federal contract funding and domestic manufacturing demand.

Critical Technical Levels For Ondas Stock

From a trend perspective, ONDS is extended but still technically constructive: it's trading 35% above the 20-day SMA ($9.62), 31.9% above the 50-day SMA ($9.84), and 47.4% above the 200-day SMA ($8.81), which keeps the longer-term bias pointed up. The catch is the short-term structure remains a bit messy with the 20-day SMA still below the 50-day SMA (a bearish crossover), even as the 50-day stays above the 200-day following the golden cross in July 2025.

Momentum is best framed through MACD: it's above its signal line and the histogram is positive, which suggests upside pressure is rebuilding versus the prior downswing. In plain English, when MACD is above its signal line, it often means sellers are losing control and buyers are starting to press again.

  • Key Resistance: $15.50 — a nearby round-number area just above the 52-week high zone ($15.28) where breakouts can stall on first contact

How Ondas Is Outperforming Communication Services Sector

Ondas is outperforming its Communication Services sector by about 20.95 percentage points today, a big gap given the sector is down 0.03% while the stock is ripping higher. Communication Services ranks 5 out of 11 sectors (mid-tier) right now, so this isn't a case of the whole group catching a bid.

Zooming out, the sector is up 0.46% over the last 30 days but down 1.50% over the last 90 days, which points to a choppy, range-like backdrop for many names in the space. That makes ONDS's move look more like a stock-specific momentum burst tied to the defense/drone narrative than a clean sector rotation.

How Ondas Generates Revenue Through Defense Tech

Ondas designs and sells FullMAX software-defined radio (SDR) technology through its Ondas Networks segment, and it also operates Ondas Autonomous Systems, which is where it generates most of its revenue via sales of the Optimus system plus support and maintenance services. The company operates across the U.S., Israel, and India, with additional exposure to places like Germany and the United Arab Emirates, and it derives its largest revenue share from Israel.

Ondas Benzinga Edge Rankings and Market Position

Below is the Benzinga Edge scorecard for Ondas, highlighting its strengths and weaknesses compared to the broader market:

  • Momentum: Bullish (Score: 99.27) — The stock is showing strong relative strength, consistent with a trend-driven tape.
  • Value: Neutral (Score: 7.83) — The score suggests valuation support is limited, so the setup is leaning more on momentum than "cheapness."

The Verdict: Ondas’s Benzinga Edge signal reveals a momentum-driven story, with price action doing most of the heavy lifting right now. With Value only modest, the trade tends to work best when the trend stays intact and buyers keep defending pullbacks toward key moving averages.

Ondas Stock Price Movement on Thursday

ONDS Stock Price Activity: Ondas shares were up 20.65% at $13.04 at the time of publication on Thursday, according to Benzinga Pro data.

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