Amprius: Leveraging Domestic Capacity and Defense Demand to Justify Premium Valuation and Support a Buy Rating

William Blair analyst Jed Dorsheimer has reiterated their bullish stance on AMPX stock, giving a Buy rating on January 29.

Jed Dorsheimer has given his Buy rating due to a combination of factors that highlight Amprius’s strategic positioning in the U.S. defense battery market. He points to the newly secured U.S. manufacturing capacity, which enables Amprius to fulfill an initial purchase order from L3Harris, a dominant supplier of tactical radios across multiple U.S. military branches with contracts totaling roughly $25 billion over their lifetimes. While the current order addresses only part of L3Harris’s overall radio battery needs, Dorsheimer views this as an entry point that can scale as Amprius ramps production. He emphasizes that defense contractors face regulatory pressure to localize battery sourcing within the United States, creating a structural demand tailwind that could favor Amprius as a domestic, technologically differentiated supplier.
In addition, Dorsheimer underscores the importance of the manufacturing partnership with Nanotech Energy in California, which provides meaningful cell production capacity and a path to generate tens of millions of dollars in annual revenue once fully operational. He expects the retooling and ramp-up period to take a few quarters, with production likely beginning around the fourth quarter, aligning with a favorable setup ahead of upcoming earnings. Although he notes that Amprius trades at a premium EV/sales multiple versus U.S. battery peers and acknowledges technology and scaling risks, he believes the company’s unique silicon-anode technology, secured domestic capacity, and growing defense demand justify the valuation and support a continued Buy recommendation.

In another report released on January 29, Needham also initiated coverage with a Buy rating on the stock with a $20.00 price target.