Two AI Stocks to Steer Clear Of and One Worth Investing In Now

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Key Points

BigBear.ai (NYSE: BBAI) and C3.ai (NYSE: AI) are identified as two AI stocks to avoid due to declining revenues and increasing losses. BigBear.ai’s revenue fell from $146 million in 2021 to $128 million in 2025, with net losses widening to $294 million. Meanwhile, C3.ai’s revenue increased from $183 million to $389 million over the same period but also saw net losses grow to $289 million. Analysts project a revenue drop for C3.ai from $389 million in fiscal 2025 to $251 million by fiscal 2028.

On the other hand, Broadcom (NASDAQ: AVGO) is highlighted as a strong buy, with revenues expected to grow at a 48% compound annual growth rate (CAGR) from fiscal 2025 to 2028. Broadcom’s AI chip sales surged 65% to $20 billion in fiscal 2025, making up 31% of the company’s top line, with projections of $60-$90 billion by fiscal 2027.

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