Better Artificial Intelligence Stock: BigBear.ai vs. Nvidia

Key Points

• BigBear.ai has become an AI investor darling over the past few years.

• Nvidia is the leading artificial intelligence semiconductor company.

• There's no substitute for high revenue growth and profitability -- and Nvidia has both.

• 10 stocks we like better than Nvidia ›

Many investors are focused on artificial intelligence stocks these days, which can be a smart play as AI transforms many industries. But it's starting to seem like any AI stock is a winner in the market right now, which means some investors may not be doing their due diligence when evaluating companies.

With that in mind, two AI companies with surging share prices right now are Nvidia (NASDAQ: NVDA) and BigBear.ai (NYSE: BBAI), and it may be worth taking a closer look at both to see which one looks like the better AI stock to buy right now.

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Image source: Getty Images.

What's happening with Nvidia

Nvidia gets top billing in this matchup because the company has experienced monster growth over the past few years as companies clamor for its artificial intelligence semiconductors. An estimated 70% to 95% of data centers utilize Nvidia's AI processors, and there seems to be no slowing down for the company's growth.

For example, Nvidia's total sales soared 114% in fiscal 2025 to $130.5 billion, and its earnings skyrocketed 147% to $2.94 per share. This growth has been fueled by the company's data center segment, which experienced a 142% revenue surge to $115 billion last year.

The impressive earnings and revenue growth have resulted in Nvidia's stock surging 57% over the past year. That's pushed the company's valuation higher, and Nvidia's shares currently have a price-to-earnings multiple of about 56. That's not cheap, but it's still lower than the average P/E ratio of 64 in the semiconductor industry right now.

What's more, Nvidia could continue to benefit from AI investments for many more years to come. Nvidia CEO Jensen Huang believes AI will fuel $2 trillion in data center spending over the next several years. While Nvidia's growth isn't guaranteed, many tech giants have already committed to spending hundreds of billions of dollars to expand their AI data centers over the next few years. That's creating an ongoing opportunity for Nvidia to continue increasing its sales.

What's happening with BigBear.ai

BigBear.ai is an AI data analytics company that helps companies and the U.S. government sort through their data to make decisions. AI analytics is a burgeoning AI trend, and it has propelled the stock of similar companies, like Palantir, into the stratosphere. BigBear.ai's stock, for its part, has jumped 323% over the past year.

But despite its impressive gains, there are some significant concerns I have with BigBear.ai, including its lack of strong revenue growth. BigBear.ai's sales increased just 5% in Q1 to $34.8 million, and management's outlook for the full year is for $160 million to $180 million -- an increase of just 7.5% at the midpoint.

These are fairly unimpressive sales figures for a small AI company that's trying to tap into an expanding artificial intelligence analytics market. One of the company's problems is that 52% of its revenue comes from just four customers. That's a high concentration of sales from just a handful of customers, and it means that if one or two leave, BigBear.ai could be in trouble.

And then there's the company's lack of earnings. BigBear.ai reported a loss of $1.10 per share last year and continued that trend with a loss of $0.25 per share in Q1. While many small start-ups often aren't profitable, it's problematic that the company's lack of earnings comes in addition to unimpressive sales growth. Meanwhile, BigBear.ai's stock has a price-to-sales ratio of 11, which is substantially higher than the average P/S multiple of 3 for the S&P 500 and means that investors are paying a premium for it right now.

Verdict: Nvidia is the hands-down winner

Nvidia's stock isn't cheap, and there are always risks with investing in AI stocks that have already experienced astronomical growth. But the company is a hands-down better investment than BigBear.ai because it's massively profitable, continually expanding its revenue, and outpaces its rivals in the AI semiconductor market.

Meanwhile, BigBear.ai's stock is overvalued, its revenue growth is unimpressive, and the company isn't profitable. This makes Nvidia the no-brainer in this matchup and one of the best AI stocks to buy and hold for the long term.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.