Government agencies are increasingly turning to artificial intelligence (AI) solutions for data analysis, task automation, and faster decision-making. BigBear.ai (NYSE: BBAI) could be a significant beneficiary, and investors seem to agree as the stock has surged 36% year to date despite the lack of meaningful revenue growth.<\/p>\n
One important reason to consider buying shares is that BigBear.ai just made a significant acquisition that could turbocharge its growth.<\/p>\n
Image source: Getty Images. <\/p>\n
While revenue fell 20% year over year in the third quarter, investors have shifted their focus entirely to the future. BigBear.ai announced an agreement to acquire AskSage, a fast-growing generative AI<\/a> platform. This acquisition, along with similar deals that may follow, could serve as a key catalyst for growth.<\/p>\n AskSage not only brings a high-growth business to BigBear.ai, but will also strengthen the company’s financials with high-margin recurring revenue. Management is currently choosing to invest heavily in expanding revenue through acquisitions. Higher revenue would make it easier to turn a profit, which would significantly boost the stock price in the long run.<\/p>\n BigBear.ai is poised to benefit from the anticipated rise in government spending on AI technology<\/a> over the next few years. AskSage is currently used by over 16,000 government teams, as well as hundreds of commercial companies.<\/p>\n This is a volatile AI stock, but management’s strategy to strategically acquire other AI businesses that provide recurring, high-margin revenue could be the single most significant catalyst that sends the stock higher in 2026 and beyond.<\/p>\n Before you buy stock in BigBear.ai, consider this:<\/p>\n