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AeroVironment Secures $500 Million Army Drone Defense Contract

The U.S. Army has awarded AeroVironment a $500 million contract to supply advanced counter-unmanned aerial systems, fueling a sharp rally in the company’s stock. Investors responded to the news with a 10% surge in share price, highlighting the surging market demand for technology capable of neutralizing hostile small-scale aircraft.

The agreement tasks the Arlington-based defense contractor with deploying specialized hardware designed to detect, track, and disable enemy drones. As global conflicts demonstrate the tactical danger posed by low-cost, off-the-shelf unmanned aircraft, military spending on defensive systems has accelerated rapidly. AeroVironment shares peaked at a 15% gain during the session before settling at $189.05, reflecting investor confidence in the company's role within this expanding defense sector.

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