BigBear.ai (NYSE: BBAI) has drawn a lot of attention on Wall Street over the past few years for its AI data analytics platform. The company sells its services to the US government and private companies, and some investors expect it to be next palantir.

Excitement over AI in general and the prospects for BigBear.ai specifically have helped boost its stock price by an impressive 152% over the past three years. But there are some red flags, including the company’s 20% drop in revenue in the third quarter, the fact that it is not profitable and that its losses are widening.

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On top of all that, BigBear.ai shares are expensive, with a price-sale ratio of nearly 13 right now compared to the tech sector’s average P/S ratio of less than 9. With so many reasons to be concerned about BigBear.ai’s investment thesis, retail investors would be better off looking elsewhere. With that in mind, here are two big ones AI stock alternatives to buy now.

If what you’re looking for is a fast-growing AI company with a lot of potential, look no further than the memory maker Micron technology (name: mu). The company’s NAND flash and dynamic random access memory (DRAM) products are in high demand as technology companies rush to build AI data centers.

What demand, exactly? Well, chief business officer Sumit Sadana told investors on Micron’s earnings call last month that the company was “more than exhausted” at the end of its latest fiscal quarter. This makes it a classic pick-and-shovel investment in the midst of an AI gold rush. And with an estimated $3 trillion to $4 trillion to be spent on AI infrastructure by 2030, there are likely still plenty of picks and shovels to buy.

And unlike BigBear.ai, Micron’s sales are growing and the company is profitable. Revenue rose 57% to $13.6 billion in the first quarter of its 2026 fiscal year, and non-GAAP (adjusted) earnings per share rose 167% to $4.78.

i know alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) it’s not as exciting as other AI stocks out there, unless you find an expanding position in AI, massive sales, and a profitable business that’s exciting (which you should be).

Alphabet’s AI play comes primarily from its Gemini chatbot, which now has 650 million monthly active users, up from 400 million about eight months ago. Alphabet is also about to expand Gemini’s reach. Apple It recently selected it to be the underlying AI model for a new version of Siri that will debut later this year. Aside from putting Gemini in more hands, Alphabet will receive $1 billion a year from Apple.

In Alphabet’s third quarter, its total sales rose 16% to $102 billion, and its earnings rose 35% to $2.87 per share. While there were previously concerns that the growing use of AI could erode Alphabet’s dominance in its core search market, the company is now well-positioned to benefit from AI with its Gemini chatbot at the center of its AI strategy.

Both Micron and Alphabet are clear leaders in their respective AI niches right now, and with increasing demand for each of their products in the space, it’s likely they’ll be able to maintain their dominant positions for years to come. Just remember that tech stocks have been volatile lately, so some short-term stock price fluctuations are to be expected.

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Chris Snow has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Micron Technology and Palantir Technologies. The Motley Fool has one disclosure policy.

Should you skip BigBear.ai and buy these two artificial intelligence (AI) stocks? was originally published by The Motley Fool