Why BigBear.ai Holdings Inc. (BBAI) Surged On Wednesday

We recently published a list of These 10 Stocks Led Rally on Wednesday. In this article, we are going to take a look at where BigBear.ai Holdings Inc. (NYSE:BBAI) stands against other stocks that led rally on Wednesday.

Ten companies led the charge on Wednesday, bucking a mostly pessimistic broader market, on the back of better outlook, positive earnings performance, and news of government support.

Wall Street’s main indices finished mix, with the Dow Jones and S&P 500 declining 0.50 percent and 0.27 percent, respectively. Nasdaq was the sole gainer, albeit inching up only 0.03 percent during the day.

In this article, we will explore the reasons behind the 10 firms’ strong performance. To come up with Wednesday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A closeup of a computer server rack surrounded by a CAT5 network of cables.

BigBear.ai Holdings Inc. (NYSE:BBAI)

BigBear.ai surged by 21.75 on Wednesday to close at $9.74 apiece as promises from the US government to support the country’s Artificial Intelligence companies fueled investor optimism.

At a recent AI summit in Paris, US Vice President JD Vance said that the US government “will…work with our allies and partners to strengthen and extend these protections and close pathways to adversaries attaining AI capabilities that threaten all of our people.”

“This administration will ensure that American AI technology continues to be the gold standard worldwide…The United States of America is the leader in AI, and our administration plans to keep it that way,” he said.

BBAI was last week’s top performer, having surged 102.6 percent in just a week’s trading, partly due to its new contract with the Department of Defense for its Virtual Anticipation Network prototype that would support the department in utilizing custom AI models to enhance its foreign news media assessment and analysis of countries that are deemed as US potential enemies.

Overall, BBAI ranks 3rd on our list of stocks that led rally on Wednesday. While we acknowledge the potential of BBAI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as BBAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.