ScanTech AI Systems (NASDAQ:STAI) is up significantly today and has risen 85%. In fact, the stock has been up over 170% over the past five days. Here’s what you need to know:
The company specializes in advanced security scanning technologies. It has dual-view high-energy X-ray scanning systems that can be used for security checks in airports and correctional facilities.
It can also be used at sensitive sites like nuclear power plants. The company is likely looking to attract military and national security-related contracts as well. Its products use AI.
The stock has been seeing significant volatility after it completed its deSPAC transaction on January 2, 2025. However, the recent rise is after a Virginia prison contract. This is on top of an earlier deal to develop next-generation AI handheld devices.
The new prison contract will be aimed at fighting contraband in correctional facilities across the U.S. If it is successful, more prisons could start using the company’s systems. ScanTech has also successfully deployed its advanced CT security scanners at multiple Ontario Power Generation nuclear facilities in Canada.
The company is still basically pre-revenue and is very capital-intensive. Considering it has a market cap of just $76 million, it is already far above what anyone should typically pay for a startup.
Still, considering it is an AI stock, there is no limit to where the rally could take it from here. The contracts in the past few weeks have been stirring up a lot of excitement and it could go up more as more investors hear of the stock. If you have a portion of your portfolio for very high-risk, high-reward bets, STAI stock may belong there.
