Even in the IA space in rapid expansion, high -flying actions must ultimately prove that their business is not all sizzles and not steak. Unfortunately, BigBear.a does not succeed in the test.
Many investors focus on artificial intelligence actions these days, which can be an intelligent game because AI transforms many industries. But it’s starting to look like any AI action is a winner on the market at the moment, which means that certain investors may not make their reasonable diligence when assessing companies.
In this spirit, two AI companies with an increase in stock prices Nvidia (NVDA -2.26%)) And Bigbear.ai (Bbai 0.95%))And it can be useful to take a closer look at the two to see which one looks like the best AI action to buy right now.
Image source: Getty Images.
What is happening with NVIDIA
NVIDIA obtains the best invoicing in this match because the company has experienced monster growth in recent years when companies are demanding their semiconductors of artificial intelligence. It is estimated that 70% to 95% of data centers use NVIDIA AI processors, and there does not seem to be slowdown for business growth.
For example, NVIDIA’s total sales climbed 114% during the financial year 2025 to 130.5 billion dollars, and its profits soared from 147% to $ 2.94 per share. This growth was fueled by the company’s data centers segment, which increased in revenues by 142% to $ 115 billion last year.
The impressive profits and income growth led to the increase in shares of NVIDIA 57% in the past year. This has pushed the higher business assessment, and Nvidia’s actions currently have a remuneration price of around 56. It is not cheap, but it is always lower than the medium P / E ratio of 64 in the semiconductor industry at the moment.
In addition, NVIDIA could continue to benefit from AI investments for many years to come. The CEO of Nvidia, Jensen Huang, thinks that the AI will feed $ 2 billions of data center expenses in the coming years. Although NVIDIA’s growth is not guaranteed, many technology giants have already undertaken to spend hundreds of billions of dollars to extend their AI data centers in the coming years. This creates a continuous opportunity for Nvidia to continue to increase sales.
What is happening with Bigbear.ai
BigBear.ai is an AI data analysis company that helps companies and the US government in the sorts of their data to make decisions. AI analysis is a booming trend of AI, and has propelled the stock of similar companies, as Palantantin the stratosphere. The Bigbear.ai stock, for its part, jumped 323% in the past year.
But despite its impressive earnings, I have important concerns with Bigbear.ai, including its lack of strong growth in income. Bigbear sales.ai increased 5% in the first quarter to $ 34.8 million, and management prospects for the full year are $ 160 to $ 180 million, an increase of only 7.5% in the middle.
These are not impressive sales figures for a small AI business that tries to draw on an expanding market of the analysis of artificial intelligence. One of the company’s problems is that 52% of its revenues come from four customers. It is a high concentration of sales from a handful of customers, and it means that if one or two leave, Bigbear.a could have trouble.
And then there is the lack of earnings from the company. Bigbear.ai declared a loss of $ 1.10 per share last year and continued this trend with a loss of $ 0.25 per share in the first quarter. Although many small start-ups are often not profitable, it is problematic that the lack of profits from the company is added to the uncompromising growth in sales. Meanwhile, the actions of Bigbear.ai have a price / sales ratio of 11, which is significantly higher than the average P / s multiple of 3 for the S&P 500 and means that investors pay a premium now.
Verdict: Nvidia is the winner of Het-Down
Nvidia’s actions are not cheap, and there are always risks of investing in AI shares that have already experienced astronomical growth. But the company is a better high-end investment than Bigbear.a because it is massively profitable, continuously expanding its income and exceeds its rivals on the IA semiconductor market.
Meanwhile, Bigbear’s actions are overvalued, its growth in income is not impressive and society is not profitable. This makes Nvidia the evidence in this match and one of the best AI actions to buy and keep long -term.
Chris Neiger has no position in the actions mentioned. The Motley Fool has positions and recommends NVIDIA and PALANTOUT technologies. The Motley Fool has a policy of disclosure.
