Up 708% this year, DroneShield shares hovering on big AI news

DroneShield is employing years of proprietary AI training data into its systems.

DroneShield Ltd (ASX: DRO) shares are edging higher in early trade today.

Shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company closed yesterday trading for $6.06. In morning trade on Wednesday, shares are changing hands for $6.07 apiece, up 0.2%.

This sees the DroneShield share price up a remarkable 708.2% since the opening bell kicked off 2025 trading on 2 January. Or enough to turn a $5,000 investment into $40,410. In nine months!

Here's what is catching ASX investor interest again today.

Man controlling a drone in the sky.

Image source: Getty Images

DroneShield shares in focus on 'landmark' release

DroneShield shares are lifting after the company announced its "most substantial" sensor and effector software release ever.

The major software updates include expanded AI detection, breakthrough drone disruption techniques, and new interoperability features.

The company highlighted the introduction of emitter-based disruption within its DroneSentry-X Mk2 platform. It said this enables more precise targeting of hostile drones while minimising radio frequency collateral.

The ASX 200 defence stock also revealed it built on five years of proprietary AI training data to roll out the largest-ever expansion of its Radio Frequency Artificial Intelligence (RFAI-2) model and drone database.

Also likely lifting investor interest in DroneShield shares, the company said that the software release has added support for the SAPIENT protocol to DroneSentry-X Mk2 and RfPatrol Mk2. The company said this ensures "seamless interoperability" with NATO and allied defence networks.

What did management say?

Commenting on the software release that could support DroneShield shares longer-term, CEO Oleg Vornik said, "This release reflects DroneShield's ongoing growth as the world's most trusted end-to-end counter-drone provider."

Vornik added:

Our vision is to see tens of thousands of devices deployed globally with end users receiving regular SaaS software updates that continuously strengthen their ability to detect, track, and neutralise emerging threats.

DroneShield's chief product & technology officer, Angus Bean, said, "Five years ago, we recognised that counter-UAS is fundamentally a data-driven challenge."

Bean continued:

That is why we began building what we believe is now the world's largest proprietary drone signal database, which continues to grow every day. This foundation underpins our RFAI, RFAI-ATK, and SFAI product families, ensuring our customers benefit from continuous improvements delivered through regular software updates.

The company said the release is part of the strategy to substantially grow SaaS revenue and support DroneShield shares over the next five years.

Management noted they couldn't quantify the dollar amount of expected sales associated with this software product right now, but revenues are expected to be "material" over time.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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