Jim Cramer’s recent endorsement of AeroVironment (AVAV) has drawn attention to the defense technology firm, highlighting its strategic position in unmanned systems and growing government contracts. The rally in AVAV shares follows the commentary, signaling heightened investor interest.
- AeroVironment (AVAV) reported $1.12 billion in fiscal 2025 revenue, up 14% YoY
- U.S. DoD contract win of $230 million in Q3 2025 for tactical drones
- AVAV stock rose 7.2% post-commentary, with trading volume at 2.1 million shares
- Company invested $189 million in R&D in FY2025 (16.9% of revenue)
- MQ-4C Triton and Switchblade drone systems are key contributors to contract wins
- Market cap reached $13.8 billion following the commentary
Jim Cramer’s on-air declaration that AeroVironment (AVAV) is 'a terrific company' has sparked renewed market interest in the defense technology leader. The comment, made during a segment on live financial programming, underscores growing confidence in AVAV’s role within the U.S. defense modernization agenda, particularly in tactical drones and surveillance systems. AeroVironment reported fiscal 2025 revenue of $1.12 billion, a 14% year-over-year increase, driven by expanded contracts with the U.S. Department of Defense and international defense partners. The company’s MQ-4C Triton and Switchblade drone systems have been central to recent procurement wins, including a $230 million contract in Q3 2025 for additional tactical drones. These systems are now deployed across multiple military operations, reinforcing AVAV’s integration into frontline capabilities. The announcement coincided with a 7.2% intraday spike in AVAV stock, bringing its market cap to approximately $13.8 billion. Trading volume surged to 2.1 million shares—nearly double the 90-day average—indicating strong retail participation. Analysts note that Cramer’s endorsement typically correlates with short-term momentum, especially in high-conviction sectors like defense tech. Investors and portfolio managers are now reevaluating AVAV’s long-term growth trajectory amid rising geopolitical tensions and increased defense spending. The company’s R&D investment reached $189 million in FY2025, representing 16.9% of revenue, which supports ongoing innovation in AI-integrated drone platforms and autonomous navigation.