The world of artificial intelligence (AI) technology is on fire and that’s why investors are so eager to invest in AI-based stocks to reap the potential benefits. One of the stocks that is gaining major spotlight is C3.ai (NYSE:AI). In the past week, the company’s shares have risen more than 33% primarily because of its positive Q4 2023 earnings update announcement.
Bullish market sentiments helped C3.ai to close 43 deals in the third quarter of 2021, ending January. Founder Tom Siebel confirmed strong customer enthusiasm for the consumption-based pricing model of the AI software maker. At the time of writing, on May 18, the AI firm was trading at $26.95 after a 14 percent jump in its share prices in the Wednesday session.
Analysts have given C3.ai’s stock a ‘neutral’ rating based on 12 gauges of the stock from the past three months. Two experts endorse the stock as a ‘strong buy’, while six recommend a ‘hold’. On the contrary, one analyst suggests the stock as a ‘sell’ and three ‘strong sell’. The consensus price target of the stock, based on ten analyst opinions for the one-year price, currently stands at $19.70, implying a negative 26.90%.
C3.Ai is based in Chicago and its market cap now stands at $2.93 billion since the start of 2023 as its stocks have more than doubled.
Tom Siebel founded C3.ai in 2009 to help establish the largest suppliers of cloud-based big data and AI systems. In 2020, the company completed a $551 million initial public offering, raising its market capitalization to $3.7 billion. Thus, Tom Siebel has been very successful in taking his venture to new heights since its inception.
Overall, C3.ai’s stock has seen an extraordinary surge previously and has good potential for future growth. Investors would do well to keep an eye on this AI stock and take advantage of the various opportunities for returns and profits that may present themselves.
