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AI Defense Firm's Stock Plunges Amid US-China Thaw
4 Aug
Summary
- BigBear.ai stock fell 13.4% last week
- Decline came as US lifted tech export restrictions to China
- Stock still up 90.5% in last 3 months on defense-AI investing trend
On August 4, 2025, the news reveals that BigBear.ai (NYSE: BBAI), an artificial intelligence (AI) company with exposure to the defense industry, saw a significant sell-off in its stock price last week. The company's share price fell 13.4% during a period when the broader S&P 500 and Nasdaq Composite indexes also declined by 2.4% and 2.2%, respectively.
While there was no major business-specific news that directly impacted BigBear.ai, the stock's valuation retreated in response to the U.S. government's decision to lift restrictions on technology exports to China. This move was likely made to help facilitate trade negotiations between the two countries.
Despite the recent pullback, BigBear.ai has experienced strong valuation gains over the last three months as investors have sought out AI companies with exposure to the defense industry, viewing them as potentially explosive growth plays. In fact, the stock is still up 90.5% over the last quarter.
Looking ahead, BigBear.ai is scheduled to report its second-quarter results and host an investor conference call on August 11. Investors will be closely watching for any significant performance beats or new contract and partnership announcements that could drive the stock's price higher.
