Airship AI (AISP) stock price surged but gains could be limited

Airship AI (NASDAQ: AISP) stock price went parabolic this week after winning a major contract by the US government. It jumped to a high of $5.94 on Tuesday, its highest point since December 23rd. It continued soaring in the pre-market, reaching a high of $7.03, 425% above its lowest level this year.

Airship AI Holdings has become one of the most actively traded stocks in the US. Its total volume jumped to over 216 million on Tuesday, a sharp increase from Monday’s196,500. According to Barchart, it had over 3.1 million in volume in the pre-market session.

AISP stock action happened after the company secured a huge order from the Department of Justice. Specifically, the order is for its Acropolis Enterprise Sensor Management platform. 

This order marks a major improvement for the company since it started its pilot program with the department in July 2023. As a result, the new development means that the company can deliver its services well. 

For starters, Airship AI provides a backend enterprise management system that enables companies and government agencies to manage devices and sensors directly to the cloud or through its Outpost AI Edge Appliance.

The stock has also surged because of the rising demand for artificial intelligence companies. Nvidia has already passed a $2 trillion market cap while Super Micro Computer has become a $60 billion giant. 

Other smaller AI companies like Soundhound and CrowdStrike have also jumped. CrowdStrike stock surged by over 20% in the pre-market after it announced strong financial results. While this is a cybersecurity company, it is uses AI to identify and prevent threats.

Analysts are mixed about the current trends in AI. Some believe that the industry is in its early days and that it has more upside to go. Others, on the other hand, believe that it has become a bubble, which could deflate soon.

AISP chart chart by TradingView

AISP stock price has become highly volatile in the past few days. It has soared from less than $2 to over $7, giving it a market cap of over $112 million. Along the way, the stock is now approaching the 50% Fibonacci Retracement level. It has also soared above all moving averages in a high-volume environment.

I suspect that these gains will fade soon as some of the investors start taking profits. We have seen similar price action in stocks like Bit Brother and Phunware recently. As such, a drop below $5 can not be ruled out.

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