The price action in Airship AI Holdings (NASDAQ: AISP) spiked 500% in two days, bringing it to the attention of MarketBeat's unusual trading activity sensors. The spike was accompanied by a 500X increase in volume that promises to keep this stock moving higher.
Why will AirshipAI move higher? Because it is an emerging player in AI with a niche product and first-mover advantage. Its core product is the Acropolis Enterprise Sensor Management operating system, an AI-powered tool to monitor, manage, and analyze data from video and other sensors. Its purpose is to increase and improve security outcomes, including evidence gathering.
The company's primary business is with the US government and allies, but it is also available to commercial customers. Given the success of Palantir's (NYSE: PLTR) move toward commercial sales, it looks like Airship AI has a long road of growth ahead.
Airship AI Holdings Surge After it Scores 2nd Government Contract
Airship AI Holdings' share price spiked when it announced a new contract with the DOJ. The contract is a sole-source award with a DOJ sub-agency resulting from a pilot program begun last year. The contract validates the utility of the Acropolis Enterprise Sensor Management platform and will likely lead to follow-on business. The contract is the 2nd for the company under the FedRAMP program and opens the door to widespread use by US agencies and upsells to existing businesses.
Airship AI has two offerings to complement Acropolis. Those are Airship Command and Airship Outpost. Airship Command is a suite of tools allowing users to view data gathered at the Edge. At the same time, Airship Command is an edge-specific application that captures and streams video/sensor evidence in real time.
The Department of Homeland Security awarded the first contract to Airship AI. It awarded multiple contracts worth $10.9 million to deploy Airship AI Outpost along the US borders. The edge solution will aid law enforcement with monitoring and detection along the border. This is a significant opportunity because border security is expected to grow nearly 100% to $68 billion by 2030.
Will Analysts Be a Catalyst for Airship AI Stock Price?
The sell-side interest will be a catalyst for this stock and will likely be bullish. The analysts have yet to issue the first rating on the stock, but it is on the way. The company's offering and growth outlook make it an attractive speculation on AI, and there is the chance of acquisition. Palantir is only one of many security-focused tech companies that may look to Airship AI as a source of growth. Its business centers on AI-powered threat detection and prevention, and adding visual capabilities aligns with its purpose.
The first quarterly results are when analysts are likely to start issuing ratings and price targets. The company's December corporate update was favorable and will likely be amplified with the report. At the time, the company expected a triple-digit increase in revenue and positive EBITDA, and the backlog was sufficient to ensure the same in 2025.
Airship AI Melts Up, New Highs Ahead
The price action in Airship AI quickly melted down following the IPO and wallowed for the first two months of the year. However, now that the 2nd contract has been awarded and more are expected, this market is melting back up, and the recent highs may be retested soon.
The spike in volume is among the most telling factors, aided by the sharp rise in the price action. The next significant hurdle is $9, which has already provided resistance. A move above that level would be bullish and could take the stock up to an all-time quickly. A move to a new all-time high could lead the market to double again.
