Oddly enough, enterprise AI company C3.ai (NYSE:AI) has gotten lost in the shuffle as the market over-focuses on the so-called “Magnificent Seven.” Sure, C3.ai has its fair share of challenges, but AI stock has massive growth potential if you buy it now.
Or, you can wait and let the opportunity pass you by. That would be foolish, though, as C3.ai stock can only stay near $30 for so long. By the time it gets to $40, you’ll want to get on board. Why hesitate if you can take action now?
Layoffs Shouldn’t Worry Investors About AI Stock
There’s no denying it. C3.ai CEO Thomas Siebel disappointed some investors a few months ago when he declared, “[A]t this time do not expect to be non-GAAP profitable in Q4 FY 24.”
Siebel still expected C3.ai to be “cash positive in Q4 FY 24 and in FY 25.” So, it wasn’t all bad news for C3.ai stock investors.
C3.ai is taking action that could help the company firm up its financials. Specifically, C3.ai recently cut an unspecified number of roles from its workforce.
Investors shouldn’t fret about C3.ai’s job cuts. A company spokesperson said that while C3.ai is cutting jobs in some areas, the company is apparently adding workers in certain key areas. “C3 AI continues to hire and fill open positions to fuel our strategic areas. We currently have jobs posted for 109 open positions,” the spokesperson said.
Moreover, soon C3.ai will demonstrate it’s solid financial footing. On Dec. after the market closes, C3.ai will release its financial results for the second quarter of fiscal 2024. The bar has been set pretty low, with analysts expecting C3.ai to lose 18 cents per share. If the company can beat that, AI stock might shoot higher.
C3.ai Stock Gets a $40 Price Target
Additionally, a prominent Wall Street expert expects C3.ai stock to move higher in the next 12 months. This isn’t a sufficient reason to start buying the stock, but it’s something to consider.
Reportedly, Oppenheimer analyst Timothy Horan upgraded AI stock from “perform” to “outperform,” and issued an ambitious $40 price target on the shares. Recently, the stock traded under $30.
According to Barron’s, Horan said that C3.ai is “one of the few pure-play AI stocks, and is seeing strong demand.” A separate report quotes Horan as stating, “C3.ai has reset guidance, worked through a model transition to usage-based, and shown real-world customer benefits.”
AI Stock: Buy Some Now, Buy More Later
Dec. 6 will be a pivotal day for C3.ai and its shareholders. Still, the bull case looks strong right now, so you might choose to buy some C3.ai stock and then buy some more after the upcoming earnings report.
Unfortunately, some investors are so focused on the “Magnificent Seven” that they’re totally ignoring C3.ai. That’s fine, though, as it means you can buy AI stock at a good price today and get solid exposure to the high-conviction machine learning technology market.
On the date of publication, David Moadel 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.
