AeroVironment Soars 11% on US Defense Procurement Policy Shift

AeroVironment (AVAV) closed up 11.04% to $263.80 on Thursday after the U.S. Department of Defense announced a major policy change backing domestically produced drones.

The new directive allows military units to directly procure drones and removes restrictions that previously limited adoption of U.S.-made systems. Investors see this as a major boost for drone suppliers like AeroVironment, already a key provider to the Pentagon.