Drone Tech Maker’s 1,000% Surge Shows Latest Wall Street Fad (1)

The eye-popping market debut of a tiny drone software company this week reveals a newfound investor appetite for stocks that fall at the intersection of geopolitics, rising spending on defense technology and artificial intelligence.

Shares of Austin, Texas-based Swarmer Inc., whose AI platform is used to deploy and coordinate drone swarms, soared nearly 1,000% in the first three trading sessions after its initial public offering. Market watchers said the rally reflects how the war in Iran has swiftly reshaped the outlook for the defense industry as governments around the world rush to retool their militaries to combat a new ...