Why C3.ai Stock Surged Higher Today
AInvestSaturday, Dec 7, 2024 1:51 pm ET
7min read
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C3.ai (AI) stock enjoyed another day of big gains on Friday, surging 8.1% and closing out the session at $30.15. The software and consulting specialist's share price had been up as much as 8.4% earlier in the day's trading. Meanwhile, the S&P 500 index ended the daily session up 0.25%, and the Nasdaq Composite index closed out the day up 0.8%.

C3.ai gained ground today thanks to a promising political development and news that one of its competitors had forged a significant new defense partnership. With just a few weeks in the year remaining, the stock is now up roughly 41% across this year's trading.

AI stocks jump on Trump czar announcement
President-elect Donald Trump published a message on social media today announcing that he plans to name venture capitalist David Sacks as artificial intelligence (AI) and crypto czar in his administration. Some investors are interpreting the announcement as a signal that the incoming Trump administration will help to create favorable demand and regulatory backdrops and drive business for AI players. While it's too early to say what the net political effects for AI companies will look like under the new administration, there are good reasons to think that demand in key AI category verticals will remain very strong.

Why are Palantir's partnerships good news for C3.ai?
Palantir and Booz Allen Hamilton announced a new partnership that will see them collaborating on innovations for the defense industry. Palantir also announced that it was partnering with Shield AI to improve the capabilities of autonomous, unmanned vehicles. Again, the partnership has a defense-industry focus, and Shield AI will be using Palantir's Warp Speed manufacturing operating system for scalable AI solutions.

While Palantir competes with C3.ai in some spaces, evidence of ramping demand in the defense industry is a broadly bullish sign. C3.ai has also won substantial deals and partnerships with the U.S. government and related defense contractors, and its recent partnership with Microsoft to expand the adoption of enterprise AI points to unfolding opportunities in the private sector as well.



Number: 1
URL: https://www.fool.com/investing/2024/11/21/why-c3ai-stock-is-surging-today/
CONTENT: C3.ai(AI 9.44%) stock is soaring in Thursday's trading. The company's share price was up 9.7% as of 2:30 p.m. ET. Meanwhile, the S&P 500 index was up roughly 0.5%.

C3.ai stock is seeing big gains on the heels of Nvidia's third-quarter report yesterday. Nvidia is the leading provider of the graphics processing units (GPUs) that are powering the artificial intelligence (AI) revolution, and its performance is often viewed as a bellwether for the broader AI industry.

Nvidia's Q3 report is lifting C3.ai stock
After the market closed yesterday, Nvidia published results for the third quarter of its 2025 fiscal year, which ended Oct. 29. The AI leader posted sales and earnings performance for the quarter that beat Wall Street's expectations, and it also issued forward guidance that came in better than anticipated.

Nvidia posted non-GAAP (adjusted) earnings per share of $0.81 on sales of $35.08 billion, topping the average analyst estimate's call for adjusted earnings of $0.75 on sales of $33.16 billion. The company's revenue was up 94% year over year, and adjusted earnings per share were up 103%. Meanwhile, the average analyst estimate had called for the business to report adjusted earnings per share of $0.75 on revenue of $33.16 billion.

Nvidia expects revenue of roughly $37.5 billion for the current quarter. If the business were to hit that target, it would mean delivering annual sales growth of roughly 70%. While the company's sales growth is decelerating, the overall demand outlook for the AI space is very strong. That bodes well for C3.ai and other players, and investors are responding by bidding up the company's stock today.

What's next for C3.ai?
With its last quarterly report, C3.ai's revenue increased 21% year over year to $87.2 million. Meanwhile, the business posted an adjusted loss per share of $0.05. Sales growth actually looks poised to accelerate in the near term.

For the current quarter, the company is guiding for sales to come in between $88.6 million and $93.6 million -- good for growth of roughly 24.5% at the midpoint. Meanwhile, full-year sales are projected to come in between $370 million and $395 million. If the business were to hit the midpoint of that guidance range, it would mean delivering sales growth of approximately 23%. Along with some encouraging forward sales guidance, C3.ai has also been scoring some promising partnerships recently. The company recently announced that it's forged a new partnership with Microsoft to accelerate the adoption of enterprise AI applications, and it published a press release yesterday detailing a partnership with Capgemini targeting AI solutions for industries including life sciences, energy, utilities, government, banking, and manufacturing.



Number: 2
URL: https://www.fool.com/investing/2024/05/30/why-c3ai-stock-popped-today/
CONTENT: Revenue growth is accelerating following an earlier switch to a consumption-based revenue model. Revenue guidance for fiscal 2025 was better than expected. Market Cap$3BToday's Change(21.76%) $5.21Current Price$29.13Price as of May 30, 2024, 3:25 p.m. ETShares of the AI software stock jumped on a better-than-expected earnings report. Shares ofC3.ai(AI21.76%)were surging today after the enterprise-software company posted better-than-expected results in its fiscal fourth-quarter earnings report and offered solid guidance for fiscal 2025.As a result, the stock was up 19.2% as of 2:26 p.m. ET.Image source: Getty Images.C3.ai quiets the doubtersC3.ai emerged as an early winner in the AI boom as its stock soared early last year, but since then, its shares have mostly struggled as it's posted slow growth and wide losses despite big promises about capitalizing on the opportunity inartificial intelligence.In its fiscal Q1 earnings report, the company reported subscription-revenue growth up 41%. Overall revenue rose 20% to $86.6 million, beating the company's own guidance and analyst expectations at $84.4 million.Following an earlier switch to consumption-based pricing, C3.ai is seeing increasing demand for its services as it closed 191 agreements in the quarter, up 52% from the quarter a year ago.On the bottom line, its adjusted-loss per share narrowed from $0.13 to $0.11, which was much better than the consensus at a loss of $0.30 per share.CEO Thomas Siebel was unabashed about the opportunity in front of the company, saying, "The interest we are seeing in our generative AI applications is staggering."What's next for C3.aiC3.ai also impressed the market with its guidance for fiscal 2025, calling for full-year revenue of $370 million to $395 million, up 23% from fiscal 2024, and better than the analyst consensus at $367.5 million.The AI software company still expects to be unprofitable, forecasting an adjusted loss from operations of $95 million to $125 million, up from $94.8 million in 2024.While the company is still likely several years away from profitability, revenue growth is accelerating, and the business is gaining traction. That's a good enough reason for the stock to bounce after the challenges it's faced.Jeremy Bowmanhas no position in any of the stocks mentioned. The Motley Fool recommends C3.ai. The Motley Fool has a.Related Articles

Number: 3
URL: https://ir.c3.ai/
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Corporate Overview
C3 AI is the Enterprise AI application software company. C3 AI delivers a family of fully integrated products including the C3 AI Platform, an end-to-end platform for developing, deploying, and operating enterprise AI applications and C3 AI Applications, a portfolio of industry-specific SaaS enterprise AI applications that enable the digital transformation of organizations globally, and C3 Generative AI, a suite of domain-specific generative AI offerings for the enterprise.
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