AI stocks have been on a roller coaster ride in 2025 amid concerns about DeepSeek and tariff fears. Meanwhile, corporate America is investing billions into AI capital expenditures to meet the soaring demand. As history shows, tech stocks are known for their volatility, and AI stocks are becoming a prime example.
A standout among AI stocks is BigBear.ai (NYSE: BBAI), which advanced an impressive 27% on Friday alone, pushing its market capitalization to $2.1 billion. Not far behind, Palantir Technologies (NYSE: PLTR) enjoyed a weekly increase of 37.5%, while Cloudflare (NYSE: NET) rose by 17% on Friday and approximately 25% for the week.
Key Points
- BigBear.ai, Palantir Technologies, and Cloudflare have experienced significant gains this week.
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- BigBear.ai is gaining recognition as a competitor to Palantir.
- Cloudflare is actively addressing challenges posed by DeepSeek.
BigBear.ai: A New Contender
Recently, BigBear.ai made headlines by securing a vital government contract with the Department of Defense. This contract allows the company to implement its Virtual Anticipation Network (VANE) prototype, equipping military personnel with advanced AI capabilities. Consequently, analysts at Cantor Fitzgerald raised their price target for BBAI, more than doubling it from $3.50 to $8.
Palantir’s Impressive Performance
Palantir has benefited from positive earnings results, leading to its surge in stock value. With a current market cap of $253.5 billion, the company is on analysts’ radar, with some predicting it could reach a staggering $1 trillion market cap. CEO Alexander Karp described Palantir’s fourth quarter as ‘astounding,’ highlighting a remarkable 52% year-over-year revenue growth in the U.S.
Cloudflare’s Strategic Insights
Cloudflare’s stock also surged thanks to its better-than-expected Q4 earnings. CEO Matthew Prince commented on DeepSeek’s AI model during a call with analysts, stating, ‘This idea that winning in AI requires spending hundreds of billions or even trillions of dollars is being challenged. This reality plays to Cloudflare’s strengths.’ William Blair analyst Jonathan Ho expressed optimism regarding Cloudflare’s opportunities in the AI landscape.
