Forget Palantir: This Beaten-Down “Fed” AI Stock Has More Upside Potential

The article argues that Booz Allen Hamilton (BAH) is an undervalued way to play AI exposure to U.S. government defense and intelligence work versus Palantir (PLTR), which commands sky-high multiples. It highlights Booz Allen’s ~$40.2 billion backlog, 1.7x book-to-bill, robust cash flow (FCF +85% to $248M) and a dividend/buyback program versus Palantir’s premium valuation (trailing P/E ~232x, price-to-sales ~78x) and dilution from stock-based comp. Market impact: investors may rotate away from richly valued AI names toward cash-generating, defense-linked AI contractors, supporting upside for beaten-down BAH shares and pressuring high-multiple PLTR valuations if growth disappoints.