A.I. Stock Market Volatility: Tom Siebel Weighs In on C3.ai and the Future of Tech Valuations

AI stock tremors are ripping through portfolios, with C3.ai (AI) founder Tom Siebel calling out "crazy" valuations for some tech companies. The pressure began with Nvidia (NVDA) and persisted with Salesforce (CRM) and Figma (FIG) getting drilled after their quarterly numbers didn't meet expectations. Siebel's comments come as investors reassess the valuation of AI stocks, which have seen significant declines.

Title: AI Stock Tremors: Investors Reassess Valuations Amid Quarterly Misses

AI stock tremors have been rippling through portfolios, with notable declines in major tech companies following their quarterly earnings reports. The pressure began with Nvidia (NVDA), which missed Wall Street's expectations, and continued with Salesforce (CRM) and Figma (FIG) experiencing significant stock price drops after their recent quarterly numbers failed to meet investor expectations. These developments have led investors to reassess the valuation of AI stocks, which have seen substantial declines in recent months.

Tom Siebel, the founder of C3.ai (AI), has commented on the situation, calling out "crazy" valuations for some tech companies. The earnings reports from Nvidia, Salesforce, and Figma have sparked a wave of uncertainty, prompting investors to scrutinize the fundamentals of these companies and the broader AI sector.

Nvidia, the leading AI chipmaker, reported a 122% year-over-year revenue growth in its second quarter but missed Wall Street's estimates, leading to a dip in its stock price. The company's strong performance in AI training has been overshadowed by high expectations and the market's focus on its valuation. In contrast, Broadcom (NASDAQ:AVGO) delivered a stellar third-quarter earnings report, with record revenue of $16 billion, a 22% year-over-year increase. Broadcom's AI semiconductor revenue surged 63% to $5.2 billion, driven by custom AI accelerators (XPUs) and Ethernet networking solutions. The company's adjusted EBITDA margin reached 66%, reflecting its operational efficiency despite a projected 70-basis-point gross margin decline next quarter [1].

Salesforce, a prominent player in the enterprise software market, reported a 3% revenue decline in the latest quarter, primarily due to a slowdown in customer growth and a decrease in sales of its Einstein AI and other cloud services. Despite this, the company maintained strong operating margins and cash flow generation. Salesforce's stock price fell significantly following the earnings report, suggesting that investors are concerned about the company's growth prospects [2].

Figma, a collaborative design tool, reported a 41% revenue growth year-over-year to $249.64 million, exceeding estimates. However, the stock plummeted after missing earnings per share (EPS) expectations. Cathie Wood's Ark Invest capitalized on this dislocation, purchasing 108,238 shares of Figma at a discounted valuation. Figma's price-to-sales ratio has fallen from 40 to 29 post-earnings, making it more aligned with peers like Adobe and Autodesk [2].

These developments underscore the challenges faced by AI stocks in the current market environment. The focus on short-term metrics and high expectations has led to significant volatility in stock prices. However, companies like Broadcom continue to demonstrate strong fundamentals and strategic positioning, offering investors exposure to the AI boom with less volatility than some of their peers.

References
[1] https://247wallst.com/investing/2025/09/05/is-broadcom-the-no-1-ai-stock-to-buy-now/
[2] https://www.ainvest.com/news/growth-stocks-tumble-salesforce-gitlab-figma-earnings-reports-2509/