(Bloomberg) -- Shares of a tiny Danish company have soared almost sixfold in less than a month as traders look for winners from increased European military spending — even though the business makes products largely for space flight.
Danish Aerospace Company A/S has risen 481% in about a month, lifting its market value to 185.4 million kroner ($26.6 million). The rally picked up steam after Denmark laid out plans to increase spending to counter an escalation in security threats from Russia. On Tuesday the stock soared 135% after Germany said it will unlock hundreds of billions of euros for defense and infrastructure.
Danish Aerospace’s products include exercise equipment that astronauts can use on long flights as well as respiratory gear and bicycle ergometers, according to its website. The company, which didn’t immediately reply to calls for comment, hasn’t recently announced any defense orders.
Chief Executive Officer Thomas Andersen told Danish business outlet Finans that Danish Aerospace has several contracts and collaborations with the defense industry, but that they only account for a small part of total sales.
The stock surge reflects the investor frenzy over defense investments, which has created a “gold rush” in the sector, said Per Hansen, an investment economist at Nordnet.
“It’s where the opportunistic money flows at the moment,” he said. “They are all looking at anything that looks remotely like defense.”
Investors are flocking to defense stocks because Europe is taking steps to rearm as the US pulls back. Germany’s Rheinmetall AG has jumped 91% in 2025, while Sweden’s Saab AB is up 57% and Norway’s Kongsberg Gruppen ASA has rallied 26%. Shares of Danish satellites manufacture GomSpace Group AB are up 44%.