Defense technology has been one of the market's most volatile and arguably talked-about themes in 2026, apart from artificial intelligence, of course. But the gains across the sector have been far from evenly distributed.
AeroVironment (NASDAQ: AVAV) is proof of that. While many of its peers have climbed, AVAV has fallen nearly 40% from where it began the year, leaving the drone and loitering-munitions maker as one of the sector's clear laggards. That is precisely what makes this week's news worth a closer look. The company just landed a landmark contract that could reframe the investment case, and it arrives with the stock trading near its 52-week low.
