Hot Stocks Watchlist: Defense, AI, Drones & Deal-Making Drive Market Buzz

June 5, 2025

DENVER, Colo., Jun 05, 2025 (247marketnews.com)- Investors looking for high-upside catalysts should keep a close eye on a handful of emerging tech and media names. From a potential merger closing in the AI gaming space to federal drone contracts and digital infrastructure expansion, here’s a breakdown of the hottest small-cap stocks making headlines:

ZenaTech (NASDAQ:ZENA) – Drones Take Flight with U.S. Government Backing

ZenaTech officially launched its Drone-as-a-Service (DaaS) platform aimed at the U.S. Department of Defense and federal agencies, a move that could unlock lucrative government contracts. The company’s drone subsidiary, ZenaDrone, also announced strategic partnerships with Bromelkamp Government Relations and Winning Strategies Washington—both key players in defense lobbying and federal procurement.

The star of the show is the ZenaDrone 1000, an autonomous military-grade UAV equipped with AI, LiDAR, thermal imaging, and modular payload capability. The company is also pursuing Blue UAS and Green UAS certifications, required for eligibility in DoD contracts.

Why it matters: With government pressure mounting to replace Chinese drone technology, ZenaTech is well-positioned to fill a rapidly expanding niche. The DaaS model also makes drone operations accessible without the heavy upfront costs, a game-changer for federal buyers.

Watch for: Pilot program wins, grant funding announcements, and certification milestones in the coming weeks.

Siyata Mobile (NASDAQ:SYTA) – AI Gaming Merger Could Close Any Day Now

Siyata Mobile, traditionally a provider of push-to-talk communication systems, is generating speculative buzz as it nears final closure of its Core Gaming AI merger. While no formal announcement has been made yet, market watchers believe a deal could be finalized any day now.

The merger with Core Gaming AI would represent a transformational pivot for Siyata, positioning the company at the intersection of artificial intelligence, gaming, and mobile tech—three of the most explosive growth sectors in today’s market.

Why it matters: A confirmed closing could instantly re-rate the stock. Previous AI-related tie-ups have sent similar small caps soaring in short bursts, and SYTA is tightly held and thinly traded—amplifying any move.

Watch for: Official merger closure news, Core Gaming AI product roadmap, or new customer/partnership announcements post-deal.

Applied Digital (NASDAQ:APLD) – Powering AI Infrastructure Growth

Applied Digital continues to attract investor attention as a provider of high-performance computing data centers catering to the booming AI and blockchain sectors. The company is expanding its footprint with modular facilities designed to meet hyperscale AI workload demands.

With NVIDIA and other AI giants driving exponential GPU adoption, Applied Digital’s power-rich infrastructure is increasingly viewed as critical backend plumbing for the generative AI era.

Watch for: Capacity expansions, new hosting contracts, or AI-as-a-service offerings.

K Wave Media (NASDAQ:KWM) – Bitcoin Bump

K Wave Media shares rallied after the company announced a landmark $500 million equity purchase agreement aimed at fueling its Bitcoin treasury strategy. The move places the first Korean media alliance to list on Nasdaq at the cutting edge of merging digital assets with corporate finance, signaling a bold step toward crypto integration at the institutional level.

Sharps Technology (NASDAQ:STSS) – Healthcare Innovation with Global Reach

Sharps Technology is a specialty medical device company focused on innovative prefilled syringe and drug delivery systems. As the world moves toward precision biologics and on-demand injectable therapies, Sharps is carving out a niche with patented safety tech.

Its recent manufacturing scale-up and distribution partnerships could pave the way for broader adoption, especially amid continued concerns around medical waste and injection safety.

Watch for: Commercial distribution news, regulatory wins, or licensing deals with major pharma players.

Baosheng Media Group Holdings (NASDAQ:BAOS) – China Media Play on the Rebound

Baosheng Media is a digital marketing and advertising services provider in China. While the Chinese small-cap sector has been volatile, BAOS has emerged as a rebound candidate as investors look to names with real revenue and targeted customer segments.

Watch for: Quarterly revenue surprises, influencer marketing contracts, or expansion into overseas digital media markets.

Please click here for Core Gaming Merger Notes and Analysis, or insights from the ValueScope Report.

For more information on Core Gaming’s latest developments and offerings, visit www.coregaming.com.

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For additional 247marketnews.com Siyata disclosure https://247marketnews.com/syta-siyata/

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