10 Most Popular AI Penny Stocks to Buy Under $5

3. BigBear.ai Holdings Inc. (NYSE:BBAI)

Share Price as of March 24: $2.97

Number of Hedge Fund Holders: 13

BigBear.ai Holdings Inc. (NYSE:BBAI) delivers AI-powered decision intelligence solutions. It offers services in national security, supply chain management, and digital identity through advanced data analytics and ML. The company’s AI platforms process and visualize complex data, and enable predictive insights for sectors like defense, logistics, and transportation.

The company has a strong focus on government contracts. The company’s work with the US Department of Defense (DoD) is a key revenue driver. The company recently secured a 3.5-year, $13.2 million sole-source contract to support the DoD’s ORION Decision Support Platform (DSP). This platform provides automated force management and data analytics that uses BigBear.ai Holdings Inc.’s (NYSE:BBAI) AI capabilities. The company also reported that increased revenue from the Department of Homeland Security and Digital Identity awards contributed to its growth.

In Q4 2024, BigBear.ai Holdings Inc. (NYSE:BBAI) reported revenue of $43.8 million, which was an 8% increase year-over-year. For FY2025, the company projects revenue between $160 and $180 million. It’s focused on the AI sector, particularly in serving the government, and is actively using the DoD’s Tradewinds Marketplace to secure AI/ML procurement contracts.