BigBear.ai (NYSE: BBAI) stock surged 15.2% on Thursday despite no specific news from the company. During the session, gains reached as high as 17.7%. The rally came amid a broader market uptick, with the S&P 500 up 0.5% and the Nasdaq rising 0.7%.

Investor interest in BigBear.ai remains high due to its exposure to defense-related AI technologies. The jump may also have been fueled by Palantir’s rise to a new valuation high — BBAI shares have often mirrored Palantir’s movements, though analysts see no direct correlation.

Following this latest rally, BigBear.ai’s market capitalization stands around $2.4 billion, with a price-to-sales ratio of 14.2. However, weak margins and modest projected revenue growth of 7.5% this year raise concerns about the stock’s current valuation.

The stock has climbed 230% since April, yet there has been little in the way of concrete business developments. Analysts note that the rally seems driven more by speculative enthusiasm for defense AI than by actual performance improvements at BigBear.ai.