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AeroVironment, Inc. (AVAV) Secures $117M US Army UAV Contract Following $97M Contract

AeroVironment, Inc. (NASDAQ:AVAV) is one of the best defense contractor stocks to buy right now. On March 23, analysts at BTIG reiterated a Buy rating on AeroVironment, Inc. (NASDAQ:AVAV) and a $330 price target.

Michael Fitzsimmons/Shutterstock.com

The positive stance is in response to the company receiving two firm-fixed-price contracts. Under the $117 million contract, the company is to deliver P550 long-range reconnaissance uncrewed aerial vehicles (UAVs) to the US Army. The contract includes finding unmanned aerial systems, battery chargers, ground control stations, launchers, and training materials.

The Red Dragon contract seeks to support the Army’s Long Range Reconnaissance program and represents the first contract for the company’s one-way platform. AeroVironment’s management is confident the platform will scale to Switchblade-like levels by the end of the decade.

According to BTIG, the latest contract underlines momentum across the company’s Autonomous Systems segment. Earlier in the month, the company secured a $97.4 million contract under the U.S. Army’s Aviation and Missile Technology Consortium (AMTC). The contract is for the development and delivery of a Generative Environment for the Next Era of Spectral Imaging Stimulators (GENESIS).

AeroVironment Inc. (NASDAQ:AVAV) is a leading defense technology company specializing in intelligent, multi-domain robotic systems, including small unmanned aircraft systems (UAS), tactical missile systems, and unmanned ground vehicles.

While we acknowledge the risk and potential of AVAV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVAV and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Robinhood Stocks with High Potential and 15 Best Forever Stocks to Buy Now.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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