Artificial intelligence has taken the world by storm, and Wall Street is no exception. AI stocks are largely skyrocketing at the moment, as investors jump on board with big names like Palantir and Nvidia. But there’s a much smaller AI stock to consider. While C3.ai (NYSE: AI) isn’t yet a household name, it’s on track to become the next big thing. If you’re in the market for a ground floor AI opportunity, here’s why it’s worth a closer look.
Who Is C3.ai?
Founded in 2009, C3.ai spent the next several years quietly preparing for the AI boom. The company specializes in enterprise AI software, primarily under the SAAS (software-as-a-service) model. C3 AI Suite is its core platform, which offers everything needed for businesses to rapidly design, develop, and deploy customized AI applications. In addition, the company offers C3 AI applications, which are its off-the-shelf apps designed for specific industries.
What Investors Need to Know
C3.ai made a massive early investment in its AI technology, at one point racking up a deficit of more than $1 billion. C3.ai started out strong with its 2020 IPO, but then crashed to negative 4% revenues by April 2023. However, C3.ai has made a remarkable comeback since then. The company has contracts with such top-name clients as AstraZeneca, Shell, and even the US Air Force, and it landed nearly 200 new contracts in the most recent fiscal year. Its revenue growth is currently sitting at 20%, and customer engagement is up 70% YOY.
Of course, there is still risk involved. C3.ai currently enjoys a high valuation, with a price-to-sales ratio of 11.1 times. It’s always possible that AI will turn out to be nothing but a fad, sending all AI stocks tumbling. But if analysts are correct, and the AI market continues to surge, C3.ai appears well positioned to ride the wave.
Neither Lisa Fritscher nor Stocks.News have positions in this company.
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Contributing Writer
Lisa Fritscher has been a contributing writer for App.Stock.News since 2024. Lisa has been interested in investing since winning The Stock Market Game in high school. In more than a decade as a professional writer, she has written consumer-facing financial information and advice articles for a wide variety of publications. She has a Bachelor of Arts in Psychology from the University of South Flori...