2 Artificial Intelligence (AI) Stocks the U.S. Government Is Supporting
Artificial intelligence (AI) is already part of everyday life — from voice assistants on smartphones to personalized shopping recommendations, smart home devices, and AI-powered customer service bots. Its presence goes far beyond consumer use; AI is deeply integrated into federal government operations and continues to grow in importance.
Two companies stand out for their roles in advancing AI within the U.S. government: Palantir Technologies and BigBear.ai. Both work closely with defense and intelligence agencies, offering unique opportunities for those interested in government technology investments.
Palantir Technologies
Palantir is a key player in AI applications for the federal government. Its stock has surged dramatically, reflecting the company’s expanding influence. Over the past year, Palantir’s stock price rose more than 400%, driven largely by its Artificial Intelligence Platform (AIP).
The AIP integrates large language models into Palantir’s Gotham and Foundry platforms, used respectively by government and commercial clients. This allows users to submit detailed prompts that generate actionable insights from vast data sets, crucial for real-time decision-making. In military contexts, Palantir pulls data from hundreds of satellites to provide commanders with critical information that can protect troops and help meet objectives.
Palantir is also broadening its government reach beyond the military. It’s involved with the Department of Homeland Security, Department of Health and Human Services, and may be working with the Social Security Administration and Internal Revenue Service on efforts to centralize government databases.
Despite an extremely high valuation—its price-to-earnings ratio is over 600—Palantir represents a significant player in AI government contracting. For those focused on long-term growth in federal AI technology, it remains a stock to consider.
BigBear.ai
BigBear.ai operates in a similar space but on a smaller scale compared to Palantir. It also works with the Pentagon and intelligence agencies, with notable contracts such as a $13.2 million award to maintain the Orion Decision Support Platform for the Joint Chiefs of Staff.
This platform provides analytics and automated force management for the Department of Defense. Additionally, BigBear.ai secured a $165 million contract to modernize U.S. Army systems with data-driven force management tools. These contracts are significant given the company’s reported $34.8 million revenue in Q1 2025 and a contract backlog of $385 million.
BigBear.ai is moving toward profitability, cutting its quarterly losses nearly in half compared to last year. It also projects revenue growth for 2025, with expected full-year revenue between $160 million and $180 million, up from $158.2 million in 2024.
While it hasn’t yet posted profits, BigBear.ai’s price-to-sales ratio is far more attractive than Palantir’s, making it an interesting option for those watching emerging government AI contractors.
For government professionals interested in staying updated on AI applications and training, resources like Complete AI Training offer relevant courses and insights.
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