7 Most Popular AI Penny Stocks Under $5

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

Number of Hedge Fund Holders: 9

BigBear.ai Holdings, Inc. (NYSE:BBAI) is a technology company that specializes in decision intelligence solutions by AI for use cases in defense, manufacturing, warehouse operations, healthcare, and life sciences. It helps its clients make informed data-driven decisions.

One of the company’s biggest goals is to help customers gain the ability to rapidly adopt and integrate Al-powered solutions on the edge cloud. The general availability of such a platform will be in 2025.

The company recorded $39.78 million in revenue for Q2 2024, representing a 3.44% year-over-year growth. The loss per share was $0.05 but beat Street expectations by $0.02.

In Q2, BigBear.ai Holdings, Inc. (NYSE:BBAI) won a $7.7 million, 7-month contract as the sole provider of a new mission management system for the US Army Test and Evaluation Command (Phase 2). The company will replace the US Army’s outdated system with a modern, user-friendly cloud platform, for project management, data access, collaboration tools, and advanced analytics.

It also secured an $8.5 million, 6-month extension to continue developing the Global Force Information Management system. This solidifies the company’s role as a prime contractor for the US Army and will help in migrating a prototype to the Army’s cloud infrastructure, aligning with their modernization goals.

BigBear.ai Holdings, Inc. (NYSE:BBAI) is strongly committed to ethically responsible AI development and advocates for international collaborations in establishing AI accountability frameworks.

Although the company lowered its sales guidance, it did announce a deal with Concept Solutions and the Federal Aviation Administration (FAA). The company is expected to thrive as AI penetrates the defense space and is still early in its growth story. The company has the potential to grow its market share as it continues winning contracts and signing deals. The stock is one of the best AI penny stocks to buy right now. As of June 30, 9 hedge funds hold stakes in the company.