BigBear.ai Holdings (BBAI) witnessed a pre-market surge of 5.03% on Thursday, building upon the stock's impressive rally of nearly 120% so far this year. The AI and data analytics company's recent gains are primarily attributed to two key factors:
Firstly, BBAI has secured several lucrative contract awards from the Department of Defense (DoD), fueling optimism about the company's prospects in the defense sector. As a provider of predictive analytics technology, BigBear.ai's solutions hold significant value for military applications.
Secondly, the broader optimism surrounding the AI industry, particularly driven by Palantir's strong outlook for 2025, has lent support to BBAI's stock performance. While operating in a similar space as Palantir, BigBear.ai lacks profitability and a comparable product portfolio, rendering it a relatively riskier investment within the AI domain.