Shares of Palladyne AI (PDYN) rose further Monday, continuing recent gains after the maker of artificial intelligence (AI) software for robots said its technology worked successfully for the first time tracking a moving target.

The company reported the Palladyne Pilot AI platform used on a flight of a third-party small drone "demonstrated the ability to identify and prioritize terrestrial targets of interest and then interface with the drone’s autopilot software to follow the prioritized target autonomously."

Palladyne noted that previously, Pilot was able to identify and target stationary sites and hovering drones. In this test, the program combined with the third-party autopilot software could "autonomously control the drone's navigation while identifying, prioritizing, tracking, and following the desired target."

Co-founder and CTO Dr. Denis Garagic explained that the company expects to finish commercialization of Palladyne Pilot by the end of the first quarter of 2025. Garagic said once that happens, "small, economical drones will finally offer some of the same intelligence capabilities that larger, multi-million-dollar unmanned systems have had for years."

Palladyne AI shares rose 2% soon after the opening bell Monday. They have soared more than 200% since the announcement last week to their highest level in more than two years.