3 Reasons C3.ai Stock Could Be Your Golden Ticket to the AI … – InvestorPlace

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Its understandable if some financial traders are skeptical of enterprise artificial intelligence (AI) company C3.ai(NYSE:AI). After all, AI stock rallied hard in early 2023. Yet, C3.ais growth story isnt over yet. There are still reasons to think about investing in this highly touted software startup.

It seems like every publicly listed technology company is jumping on the machine-learning bandwagon nowadays. CEOs are purposely mentioning AI multiple times during conference calls, just to drum up investor interest.

In contrast, C3.ai definitely isnt a bandwagon jumper. The company was been a machine-learning mainstay before the trend picked up steam in 2023. So, lets recap three great reasons to think about buying AI stock now.

By a long shot, C3.ai isnt the biggest company involved in machine learning. As of this writing, C3.ai is No. 13 among the largest AI businesses based on market capitalization.

On the other hand, youre definitely not getting pure-play machine-learning exposure if you invest in Microsoft (NASDAQ:MSFT) or Nvidia(NASDAQ:NVDA). Unlike those tech titans, C3.ai is, to quote Alex Sirois, considered to be among the most direct ways to play the AI boom.

Sure, Microsoft invested in the technology of an AI company (specifically,OpenAIs ChatGPT chatbot). However, C3.ai actually is an AI company first and foremost. This isnt to suggest that you shouldnt invest in Microsoft, Nvidia and so on. Its possible to own shares of a variety of technology companies, while also boosting your portfolios machine-learning exposure with AI stock.

C3.ai serves the public and private sectors and has significant clients in both of those categories. The companys public-sector clients include the Sheriffs Office of San Mateo County, Calif., and even the U.S. Air Force.

Furthermore, C3.ais private-sector clients include such corporate giants as Shell (NYSE:SHEL), Consolidated Edison (NYSE:ED) and Raytheon Technologies (NYSE:RTX). With heavy hitters like those on C3.ais roster of clients, one might expect the company to generate robust revenue.

And indeed, C3.ai has proven itself in that regard. During the third fiscal quarter of 2023, C3.ai generated $66.7 million in total revenue, exceeding the companys guidance of $63 million to $65 million.

Ill admit, folks who took a share position in C3.ai in early April entered into a crowded trade. If they held on to their stake in C3.ai, theyre surely underwater on their investment now.

You might hear analysts warning financial traders about chasing the rally in AI stock. Yet, that rally is old news by now. The stock has pulled back, thereby allowing new investors to get on board and prior shareholders to reduce their cost basis.

In other words, you dont have to worry about being a hype-chaser if you choose to invest in C3.ai now. The C3.ai share price is close to where it was in February of this year, before machine-learning mania took over the financial markets. Therefore, dont hesitate to give C3.ai a chance, as the company deserves a place in your AI-friendly portfolio right now.

On the date of publication, David Moadeldid not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

David Moadel has provided compelling content and crossed the occasional line on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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