George Budwell, The Motley Fool

Sat, May 24, 2025, 3:15 AM6 min read

• Palantir Technologies has taken the investing world by storm, thanks to its innovative use of artificial intelligence in the data analytics arena.

• These three AI stocks could be the next Palantir Technologies.

• 10 stocks we like better than BigBear.ai ›

Palantir Technologies (NASDAQ: PLTR) has delivered extraordinary returns. Over the past five years, the data analytics company has generated a staggering 1,122% return, transforming an initial investment of $10,000 into $122,200. As a result, the artificial intelligence (AI) powerhouse's stock currently trades at a staggering 222 times forward earnings.

The catalyst? Palantir's Artificial Intelligence Platform (AIP), launched in mid-2023, has driven strong revenue growth, including 39% year-over-year growth in the first quarter of 2025. This AI pioneer demonstrates how powerful emerging technology can create massive shareholder value over time.

Here are three growth stocks with similar characteristics -- cutting-edge platforms, expanding markets, and the potential for significant returns -- that could be the next Palantir.

BigBear.ai Holdings (NYSE: BBAI) operates in Palantir's wheelhouse -- AI-powered decision intelligence solutions for government agencies. While the stock has struggled this year, falling 14%, the company's fundamentals tell a different story about its potential as a turnaround play in the lucrative government AI market.

BigBear.ai serves as a critical technology partner to agencies like the Department of Homeland Security, delivering AI solutions for digital identity verification and national security applications. This government-first approach mirrors Palantir's early strategy, building deep relationships with agencies that have massive budgets and long contract cycles. The company's $385 million backlog provides revenue visibility -- more than 10 times its quarterly revenue run rate.

Financially, BigBear.ai is showing signs of stabilization. First-quarter revenue grew 5% year over year to $34.8 million, while the company significantly improved its net loss from $127.8 million to $62 million. Management affirmed its 2025 outlook for revenue between $160 million and $180 million, suggesting confidence in execution despite a challenging environment.

The company strengthened its balance sheet during the quarter, reducing long-term debt by $58 million and raising $64.7 million in gross proceeds from warrant exercises. With $107.6 million in cash, BigBear.ai has the financial flexibility to invest in growth initiatives while government agencies increasingly prioritize AI capabilities.