Artificial Intelligence

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C3.ai (AI) - >>> If the AI industry does create $90 trillion in enterprise value by 2030, C3.ai (AI) could be set for explosive growth given the company is valued at just $2.5 billion right now. It's a first-of-its-kind enterprise AI company -- in fact, it pioneered the industry.


https://www.fool.com/investing/2023/04/16/2-ai-stocks-could-share-90-trillion-value-by-2030/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


C3.ai develops AI applications for its business customers, whether they need a ready-made solution or something entirely custom. Those customers operate across 14 industries including oil and gas, manufacturing, healthcare, financial services, and even the U.S. government. By using C3.ai, companies can accelerate their adoption of this advanced technology rather than building it from scratch, which can consume a significant amount of time and resources.

C3.ai's progress in AI is also recognized by some of the world's largest tech giants. It now sells AI applications jointly with Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud. Those cloud providers use C3.ai to improve their own product offerings to customers. For example, a business can develop AI applications 26 times faster with C3.ai on AWS compared to using AWS alone.

Investors should be aware of a couple of things before buying C3.ai stock. First, its revenue growth has stalled because the company is in the middle of transitioning away from subscription-based pricing to consumption-based pricing. It will eliminate lengthy negotiations and convoluted onboarding processes when acquiring new customers, and C3.ai expects revenue growth to come in at 30% from fiscal 2024 onward.

Second, the company was recently called out by a short seller for discrepancies in its financial statements, mainly relating to how revenue is being recorded. C3.ai hasn't responded yet, and it may feel confident enough in its position that a response isn't warranted, but it's something to be wary of, nonetheless.

C3.ai has been a volatile stock since it listed publicly in December 2020, quickly reaching an all-time high of $161 amid the red-hot tech market. But it has since crashed by 85% as investors began to sour on technology stocks, and because the company failed to deliver on growth expectations. For investors seeking exposure to the potential value creation AI has to offer, and who have an appetite for risk, it might be worth taking a small position in C3.ai stock.

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