Why Is C3.ai (AI) Stock Up 20% Today?
One of the more impressive movers in today’s market, C3.ai (NASDAQ:AI) is certainly grabbing significant investor attention. Currently, AI stock is up more than 22% in early afternoon trading as investors pile into artificial intelligence-related stocks. Indeed, with the ticker “AI,” this company ought to be the first investors consider when looking for exposure to this sector.
Notably, C3.ai has another key catalyst investors are watching today. Investment firm DA Davidson initiated coverage on the stock today, providing a “buy” rating and a $30 price target. This estimate is notable because yesterday’s close for AI stock was under $22 per share.
The fact AI stock has closed the gap so quickly in today’s session is interesting. Now moving toward the $27 per share level, there’s still some upside for those bullish on this company. Let’s dive into what has this particular analyst excited and why investors appear to be itching to get their hands on some AI stock.
AI Stock Surges on Bullish Analyst Note
One of the key comments made by DA Davidson analysts in this note is they believe C3.ai is a “truly scarce asset.” In a world dominated by big tech companies looking to enter the world of artificial intelligence, that’s a flattering statement to be sure.
C3.ai is focused on monetizing investments made in the artificial intelligence space. The company’s C3 generative AI product suite reportedly utilizes natural language to “rapidly locate, retrieve, and present all relevant data across the entire corpus of an enterprise’s information systems.”
Those who have experienced OpenAI’s ChatGPT product may immediately consider the potential the technology has. The company’s future rollout, which is expected to include enterprise products and offerings in the academics space, could also boost its long-term allure among investors.
On the date of publication, Chris MacDonald did 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.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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