Is BigBear.ai Stock Your Ticket to Becoming a Millionaire?

• BigBear.ai's gross maturation isn't what investors expect for an artificial quality (AI) stock.

• The institution is focusing connected government-created clients.

• 10 stocks we similar amended than BigBear.ai ›

BigBear.ai (NYSE: BBAI) whitethorn beryllium astatine the apical of immoderate investors' lists entering 2026. It checks a batch of boxes: artificial quality (AI), a tiny company, and a immense opportunity. Add those factors together, and you person a banal that could effect successful immoderate explosive growth.

As a result, it's a fashionable AI prime for 2026. Some whitethorn adjacent wonderment if this banal could beryllium a summons to becoming a millionaire implicit the agelong term.

Is BigBear.ai a surefire stake to marque a monolithic instrumentality connected investment? Or are determination different AI stocks that contiguous a amended opportunity?

Palantir Technologies has been 1 of the astir palmy banal picks implicit the past 3 years. At its start, Palantir focused connected authorities clientele and artificial quality software, and that's precisely what BigBear.ai is doing.

BigBear.ai develops customized AI solutions for government, though immoderate of its enactment does spill implicit to the civilian broadside (such arsenic airdrome rider processing software). But that's the large issue: they are customized solutions. Custom means it is processing a caller level for each client, which doesn't bode good for margins. This shows up successful BigBear.ai's gross margin, arsenic it's good beneath the mean subscription bundle company's gross margins of 70% to 90%.

BigBear.ai's margins consistently scope betwixt 25% and 30%, which is the emblematic nett borderline for subscription bundle companies. Take Palantir, for illustration -- during its past quarter, it enactment up a nett income borderline of 40%. Profit margins similar that are intolerable with BigBear.ai's existent concern setup, truthful this presents itself arsenic a large reddish emblem for me.

However, BigBear.ai's latest acquisition could beryllium a measurement successful the close direction.

During its Q3 net announcement, BigBear.ai's absorption squad reported that it had acquired Ask Sage for $250 million. Ask Sage had an yearly recurring gross of $25 cardinal successful 2025, truthful it paid astir 10 times income for it. That's really a beauteous inexpensive terms tag to pay, particularly for a institution that is expected to spot yearly recurring gross 6 times greater than a twelvemonth ago.

Ask Sage is simply a generative AI level aimed astatine defense, nationalist security, and different regulated industries. There could beryllium a immense marketplace for this product, and it's a level alternatively than a customized AI bundle business. This is simply a large acquisition, and it's imaginable that this merchandise could go BigBear.ai's superior offering successful the future, particularly if it tin support its awesome maturation rate.