Republican Leadership Chooses 'AI Defense Stocks', Prices Declining
Lisa McClain, the fourth-ranking House Republican and representative of Michigan’s 9th District, disclosed on March 4 that she purchased between $16,000 and $65,000 worth of BigBear.ai Holdings, Inc. (BBAI) shares on February 4 and 6. Since her purchase, the stock—trading around $4 in early March—has continued to slide. (sahmcapital.com)
BigBear.ai supplies AI-based software specializing in battlefield and intelligence analysis and decision-support to the Department of Defense and U.S. intelligence agencies. Classified as a “defense-theme AI stock,” the company holds multi-hundred-million-dollar backlogs on U.S. Army and Navy projects. In its fourth-quarter 2025 results and 2026 guidance, BigBear.ai emphasized debt reduction and M&A, but revenue guidance fell short of market expectations and dilution concerns intensified. The stock lost more than 20% in February, and volatility spiked in early March amid the earnings release and lowered price targets. (ir.bigbear.ai)
A Republican who sits on the House Armed Services Committee and its Military Personnel and Readiness Subcommittee, McClain has shaped U.S. defense budgets, force structure and technology investments. Elected to GOP leadership roles in both the 118th and 119th Congresses, she also sponsored the Information Quality Assurance Act and other bills regulating government data use. Her personal investment in an AI defense contractor serving the military and intelligence community has drawn questions about potential conflicts of interest. (mcclain.house.gov)
McClain has previously drawn scrutiny for millions of dollars in frequent trades of tech and defense-related stocks, including NVIDIA and Palantir. When insider-trading allegations arose over her holdings of Elon Musk’s xAI—a privately held stock—she denied using nonpublic information, saying, “If I had inside information, I would have bought a lot more.” Recent reports and progressive outlets have also highlighted her delays in STOCK Act disclosures, adding momentum to bipartisan proposals such as the STOP Insider Trading Act and the Restore Trust in Government Act, which would bar members of Congress and their families from trading individual stocks. (sahmcapital.com)