11 Penny Stocks That Will Make You A Millionaire

5. BigBear.ai Inc. (NYSE:BBAI)

Number of Hedge Fund Holders: 9

BigBear.ai Inc. (NYSE:BBAI) is an information technology company based in Columbia, Maryland. It provides AI-powered decision intelligence solutions alongside national security, supply chain management, and digital identity solutions.

Dylan Jovine, in his Behind the Markets newsletter, has teased readers with hints about three small AI players in the defense market. Here are some of his comments on one of these companies and its AI software that is being bought up by major defense companies and the US government:

“It’s not just about selling this AI software to the U.S. Space Force. Remember, the U.S. Pentagon has requested $145 billion to get its troops “AI-ready”… Palantir – one of the biggest defense contractors – bought their AI software on November 15, 2021. L3Harris – another major defense contractor – bought their AI software on May 9, 2023… Amazon Web Services – the biggest cloud computing provider on the planet – bought their AI software on December 11, 2023.”

Stock Gumshoe thinks that this is most definitely in reference to BigBear.ai Inc. (NYSE:BBAI). The company does have partnerships and deals with all of the companies Jovine has referred to and has multiple steady government contracts for the use of its AI software.

While many analysts and investors are skeptical about BigBear.ai Inc.’s (NYSE:BBAI) potential growth, the company’s management has remained optimistic, especially in light of its acquisition of Pangiam. BigBear.ai Inc.’s (NYSE:BBAI) management also noted in their first quarter press release that the company is well-positioned for healthy growth in the year ahead.

We saw nine hedge funds long BigBear.ai Inc. (NYSE:BBAI) in the second quarter, with a total stake value of $408,000.