C3 AI Inc (AI)

[mick]

$AI The oil and gas industry currently accounts for around 35% of total revenue. C3.ai has developed a new suite of AI tools for Baker Hughes (NYSE:BKR), which helps oil companies decrease carbon emissions and increase overall efficiency.

While C3.ai isn’t yet profitable, it boasts a hefty 75% gross margin. The company estimates second-quarter revenue growth to come in at 37% YOY.

Given significant top-line growth and a growing addressable market, the current stock price presents an attractive opportunity to buy AI shares at a reasonable valuation. AI stock currently hovers just below $49, down 70% from its all-time high (ATH) in late 2020. It’s down 65% year-to-date (YTD). Shares are trading at 26x