If you’ve never heard of artificial intelligence developer BigBear.ai (NYSE:BBAI), don’t be too surprised, many haven’t either. However, those who invested early are glad they did, as the company blasted up over 240% in Thursday’s trading thanks to a set of new contracts from the U.S. Air Force.
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The contracts, which have a combined value of $900 million, make BigBear.ai a “prime contractor,” developing a wide range of new systems as well as “synthetic environments.” BigBear.ai is also positioned to compete for other kinds of contracts, including new technology development and rapid prototype creation, among others.
The contracts are fairly long-term in nature, concluding by 2032, which means BigBear.ai will have plenty on its plate for a while. Just what BigBear.ai will be working on is unclear, but its Solutions page suggests that it can do everything from improving corporate decision-making to cybersecurity and logistics planning. Perhaps most likely of all—especially given the “synthetic environment” portion of the contracts—is a new kind of flight simulator system. One of BigBear.ai’s listed solutions is “simulation solutions,” which would be the kind of thing the Air Force would want.
The last five days of trading for BBAI stock show a company that needed a win in short order. It plateaued in the sub-dollar mark for several days until today’s news sent shares spiking.