2 Artificial Intelligence (AI) Stocks the U.S. Government Wants to Support

Group 1: Artificial Intelligence in Daily Life - AI is already integrated into daily life through various applications such as voice assistants, personalized recommendations, and smart home devices [1] - The influence of AI is expected to grow even more pervasive in the future [1] Group 2: AI in the U.S. Government - AI is significantly embedded in the U.S. government, with companies like Palantir Technologies and BigBear.ai playing crucial roles in federal projects [2] - Palantir is recognized as a leading name in AI applications within the federal government [4] Group 3: Palantir Technologies - Palantir's stock has seen substantial growth, increasing by 414% over the last 12 months and nearly 90% in 2025 [4] - The company's growth is attributed to its Artificial Intelligence Platform (AIP), which enhances its Gotham and Foundry platforms for government and commercial clients [5] - Palantir is expanding its government contracts beyond military applications, working with various departments to create a centralized government database [6] - Despite a high valuation with a price-to-earnings ratio of 617, Palantir is viewed as a revolutionary stock with long-term potential [7] Group 4: BigBear.ai - BigBear.ai collaborates with the Pentagon and intelligence agencies, with potential for growth if government contracts continue to expand [8] - The company has secured significant contracts, including a $13.2 million award for the Joint Chiefs of Staff and a $165 million contract for U.S. Army system modernization [9] - BigBear.ai reported $34.8 million in revenue for Q1 2025, with a year-over-year growth of 5% and a backlog of $385 million in contracts [10] - The company is moving towards profitability, with a reduced loss of $62 million in Q1 2025 compared to $127.8 million in Q1 2024, and guidance for full-year revenue between $160 million and $180 million [11] - BigBear.ai's price-to-sales ratio of just over 10 is more attractive compared to Palantir's ratio of 113.5, making it a potential investment opportunity [12]