It’s been a volatile session so far for Amprius Technologies (NYSE:AMPX). The stock has seemingly settled down for the day near $11, despite AMPX stock trading as high as $16.80 earlier in the session.
On a day where nine out of every 10 NYSE-listed stocks are trading lower so far, AMPX stock is showing some nice outperformance by trading in positive territory. However, the price action has been anything but healthy lately. The stock began trading yesterday under its new ticker symbol, opening for around $9 a share, running up to $26, then closing at $10. In so many words: Volatile.
Despite that volatility though, Amprius Technologies has investors’ attention as a potentially game-changing battery stock. Is that the case?
As a leader in lithium-ion batteries and the surging demand among EVs, AMPX stock is at least worth a look. However, it’s not just EVs that are seeing an increase in demand. Solar stocks have been on fire, and electricity storage is now trending as well. An energy crisis, countless droughts and other catalysts have companies (and countries) looking at alternative energy sources.
All of this points to energy storage in some capacity, which brings us back to battery stocks like AMPX.
Is AMPX Stock the Next Big Battery Stock?
After recently combining with Kensington Capital Acquisition Corp. IV in a SPAC deal, the company is now trading under the AMPX stock ticker. According to the company, it:
…has developed and, since 2018, been in commercial production of an ultra-high energy density lithium-ion battery for mobility applications… Amprius’ silicon nanowire anode technology enables batteries with a higher energy density, higher power density, and extreme fast charging capabilities over a wide range of operating temperatures, resulting in its batteries providing superior performance compared to conventional graphite lithium-ion batteries.
As previously reported by InvestorPlace: “Amprius was expected to raise $430 million on a valuation of $939 million. The jump in AMPX stock implies a market cap of almost $2 billion.”
It also counts the U.S. Army and Airbus as two of its largest customers and, as noted above, has been in commercial production since 2018.
But does all of that make it a buy? In a market environment as tough as this, AMPX stock should very much be considered a speculative holding. At least until we get a better idea of how its business is going and we hear from management.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.