Shares of C3.ai Inc. rose by over 4% on Monday, putting an end to its five-day losing streak. The boost came after an optimistic note from Wedbush’s Daniel Ives regarding the enterprise-software company and its potential.
While some analysts were disappointed with C3.ai’s lack of financial discussion at last week’s investor-day presentation, Ives sees the company and its stock in a more positive light.
Ives noted that “With artificial intelligence representing an $800 billion opportunity over the next decade, C3.ai finds itself at the center of the AI gold rush taking place with a strong product portfolio and expanding partner ecosystem to take market share in this accelerating market.”
He also emphasized a variety of highlights for the company, such as its shortened sales cycle despite the tough economic climate. He said, “the company is seeing increased sales activity, growing pipeline and encouraging business prospects.”
Overall, many believe that C3.ai is well-positioned for success in the AI market.
AI Stocks are On the Rise
C3.ai is a lesser-known Silicon Valley computer maker that has recently caught the attention of investors due to its potential for growth in the AI industry. The company hosted an investor day where several analysts praised its position in the market, including Dan Ives of Wedbush Securities. “Now it’s all about execution and proving the skeptics wrong quarter by quarter as C3 looks to capitalize on this burgeoning AI opportunity over the coming years,” he stated, while reiterating an outperform rating and $50 target price on the shares.
While the investor day was generally viewed as constructive, some analysts, such as Piper Sandler’s Arvind Ramnani, remain cautiously optimistic about C3.ai’s future. He has a neutral rating on the stock and a $29 target price, acknowledging that while C3 may be well-positioned to take advantage of industry AI trends, higher levels of revenue growth are necessary before getting more constructive on the stock.
Despite some mixed reviews, C3.ai shares have soared over 200% this year. Even a 28% dip in the five-session stretch leading up to Monday did not dampen bullish sentiment. As AI continues to disrupt various industries, it is no surprise that investors are keeping a close eye on companies like C3.ai.
