To The Moon

As we have the tech earnings coming up, with the DeepSeek disrupting the market for a while, the AI revolution have been in motion more than ever.

So question we need to ask ourselves is which are the AI stocks that could bring us forward in times of volatility brought on by some surprise. I would like to share two under-the-radar, pure play AI stocks offer asymmetric reward-to-risk.

I hold position in these two stocks. These two AI stocks have been up and coming with them getting some impressive large deals who offer a massive catalyst.

The catalyst have propel both these AI stocks in their recent share price movement, $Palantir Technologies Inc.(PLTR)$ have risen by more than 22% post earnings and close at $101.38 at end of Wednesday (05 Feb) session, and $BigBear.ai Holdings(BBAI)$ have gained an impressive 44.81% after they are awarded contract by Department Of Defense’s Chief Digital and Artificial Intelligence Office, but the financial terms is not disclosed yet.

Palantir And BigBear.ai Strategic Partnership - A Powerful Catalyst

Palantir and BigBear.ai both offer decision intelligence solutions spanning national security, digital identity, supply chains and logistics, enterprise operations, and integration of manned-unmanned teaming within autonomous systems.

On 28 Feb 2024, PLTR and BBAI announced a strategic partnership combining AI-powered products with a next-generation operating platform.

Why this partnership would be seen as a powerful catalyst for A Win-Win situation.

1. PLTR has a market cap of $230.80 billion while BBAI only have a market cap of 1.79 billion, so BBAI could have an

   opportunity to extend Palantir’s products with its forecasting, course of action optimization, conflation, computer vision, natural language processing, and other predictive analytics via low-code interfaces. This could allow BBAI opportunity to speed up their growth and winning bigger contract

2. With PLTR finding value in BBAI’s offering to complement its product, especially building upon the agility and scalability of Palantir’s Foundry data and analytics fabric, BigBear.ai’s products will enable businesses to achieve return on investment faster with out-of-the-box optimization solutions for pricing, inventory and asset allocation, facility and operations management, and customer targeting.

PLTR and BBAI - Path To Profitability

While we have seen how PLTR has been gaining momentum and prove to the concern of its overvaluation, PLTR have done a good jobs in keeping up with the strong results after reporting stronger-than-expected fourth-quarter results and guidance driven by AI. Co-founder and CEO Alex Karp called the momentum within its commercial and government segments "unlike anything that has come before.

I will be expecting PLTR to continue this strong momentum as the AI revolution continue to benefit the few pure AI play stock, less to say a profitable one like PLTR.

On the other hand, we can see that BBAI have been trying to go profitable in March 2024, but did not really manage to do so despite gaining momentum from an EPS expectations perspective.

BBAI had beaten two previous quarter in terms of the EPS estimates, and I would think BBAI can continue to show promising result by beating the EPS estimate in this upcoming fourth-quarter earnings on 12 March 2025.

Accumulation Patterns Show Massive Investors Interest and Accumulation

If we looked at PLTR, we can seeing heavy volume and price momentum which indicate massive accumulation before its earnings, so this help the stock to form a bullish pattern where the bulls have successfully defended the key level at both 12-EMA and 26-EMA.

We are also seeing similar pattern in BBAI before we saw a more than 44% surge on Wednesday, there have been heavy volume and price momentum which also indicate massive accumulation.

Actually there is an ascending triangle being noticed before we see a surge in volume and also price momentum, this form a very nice bullish upside and I will be waiting to see how BBAI would be trading this week and when the actual financial terms would be coming out for the contract they just clinched.

Summary

I am holding both PLTR and BBAI for long term, and will be adding more stocks when there is good opportunity showing for bullish and potentially explosive high-tight flag pattern.

Appreciate if you could share your thoughts in the comment section whether you think both PLTR and BBAI would continue to perform well as pure AI play stocks.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.