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Is BigBear.ai Stock the Next NVIDIA - and Should You Buy?

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Key Takeaways

  • BigBear.ai's revenues fell in Q2 and Q3, but the Ask Sage acquisition positions it for a rebound.
  • BBAI targets $125M-$140M in 2025 sales as Ask Sage adds 100,000 users across 16,000 government teams.
  • BigBear.ai ended Q3 with $456.6M in cash and posted $2.5M net income, marking progress toward profitability.

The artificial intelligence (AI) boom has fueled rapid growth for NVIDIA Corporation (NVDA - Free Report) , whose shares increased 33.2% over the past year. However, in the same period, the smaller BigBear.ai Holdings, Inc. (BBAI - Free Report) capitalized on the rising demand for the AI software solutions market and climbed 181%. Does this imply that BigBear.ai could become the “next NVIDIA” and merit investor attention now? Let’s see –  

2 Reasons to be Bullish on BigBear.ai Stock 

At the beginning of the year, the federal government’s willingness to boost domestic growth in technology fueled BigBear.ai’s shares to record highs. However, later, President Trump’s substantial cuts to federal spending impacted BigBear.ai’s share price. As a result of the reduced funding, BigBear.ai’s revenues fell 20% year over year to $33.1 million in the third quarter, following an 18% year-over-year decline to $32.5 million in the second quarter.  

But BigBear.ai’s top-line performance is poised to rebound following its definitive deal to acquire Ask Sage for $250 million, which is a rapidly expanding generative AI platform built for secure AI deployment in regulated fields, including defense and national security, citing ir.bigbear.ai. Ask Sage is widely adopted, with agencies ranging from the Defense Health Agency to the US Space Force employing it. Now, Ask Sage supports 100,000 users across 16,000 government teams.  

CEO of BigBear.ai, Kevin McAleenan, said, “by integrating Ask Sage with BigBear.ai, we are creating what the market has been asking for: a secure, integrated AI platform that connects software, data, and mission services in one place.” Banking on the Ask Sage acquisition to accelerate revenue growth, BigBear.ai is sticking to its full-year sales guidance between $125 million and $140 million.  

In addition to an expected improvement in revenues, BigBear.ai also benefits from a strong balance sheet. Its balance sheet strengthened sequentially, culminating in a record $456.6 million in cash as of September 30, 2025, giving the company a strong foundation to ramp up growth. A strong cash position will help BigBear.ai to fund growth initiatives, pursue additional acquisitions, and scale its operations at a faster pace. 

Is BBAI Worth Investing In Now? Could it be the Next NVIDIA? 

BigBear.ai is set for growth with the Ask Sage acquisition and a strong cash cushion, and McAleenan expects the increased government spending next year, thanks to Trump’s “big, beautiful bill,” to further boost the company’s business. Lest we forget, the company did post a net income of $2.5 million for the third quarter, whereas it had posted a net loss of $15.1 million in the same period a year ago, a significant milestone toward profitability. 

Brokers are also optimistic about BigBear.ai’s growth in the future. Consequently, they forecast the average short-term price target for BBAI stock at $6.67, reflecting a 10.8% increase from the last closing price of $6.02. The highest target is $8, suggesting a potential upside of 32.9%. Therefore, investors can confidently bet on BigBear.ai stock. BigBear.ai carries a Zacks Rank #3 (Hold) at the moment. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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However, to say BigBear.ai is the “next NVIDIA” is premature. This is because BigBear.ai’s loss from operations of $21.9 million in the third quarter more than doubled the $10.5 million loss a year earlier. The increase in operating losses, coupled with declining sales, may slow the company’s growth momentum. NVIDIA, on the other hand, has consistently delivered an increase in revenue and profit, driven by its dominance in AI hardware and a strong competitive edge provided by its CUDA software platform, which is likely to continue fueling its expansion (read more: 3 Reasons to Buy NVIDIA After Its Massive 62% Revenue Surge).


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