Why BigBear.ai, SoundHound AI, and AST SpaceMobile Shares All Popped This Week

Core Viewpoint - Small- and mid-cap AI stocks have experienced significant gains due to favorable economic data and company-specific events, including new contracts and analyst upgrades [1] Group 1: Company Performance - BigBear.ai Holdings saw its shares surge nearly 72% following a major contract win from the Department of Defense for its Virtual Anticipation Network (VANE) prototype [2][3] - AST SpaceMobile's shares increased by approximately 34% after receiving approval from the Federal Communications Commission to test its satellite connection services [2][6] - SoundHound AI's stock rose about 13%, benefiting from broader market conditions and the launch of new customizations for its chat voice assistant [2][8] Group 2: Major Contracts and Developments - BigBear.ai's contract with the Department of Defense aims to enhance the use of AI language models for evaluating news media origins in non-allied countries, highlighting the importance of advanced AI technologies in national defense [4][5] - AST SpaceMobile's satellite technology is designed to provide cellular broadband services, potentially connecting cellphones in areas with no coverage [6] Group 3: Analyst Insights - Cantor Fitzgerald raised BigBear.ai's price target from $3.50 to$8 and increased revenue estimates for 2025 following the contract announcement [5] - Cantor Fitzgerald initiated coverage of AST SpaceMobile with a $30 price target, acknowledging the stock's volatility but highlighting potential benefits from AI integration and government contracts [7] Group 4: Market Valuation and Risks - BigBear.ai, AST SpaceMobile, and SoundHound AI are innovative companies with potential market disruption capabilities, yet none are currently profitable and have reached multibillion-dollar valuations [9] - The volatility of these stocks suggests caution for investors, recommending only small, speculative positions at this time [10]