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Investors have fallen in love with artificial intelligence this year and many companies involved in this area are benefiting from the lavish affection.
One such business is C3.ai, an enterprise AI specialist that’s focused on integrating advanced technologies into large organizations.
But is now the right time to buy С3.ai’s AI stock, or is it best to remain cautious due to the recent price hikes and concerns about investment levels in the technology sector?
In our C3.ai stock forecast 2025 and beyond, we consider the AI price target of stock market analysts and the outlook for the broader AI sector.
Explore whether C3.ai could stay among the best AI stocks to invest in the coming years.
Key Takeaways
- The AI price has been pretty volatile over the past year as investors have fallen in love ? with tech names and then become anxious about their prospects.
- The C3.ai stock is rated as a ‘hold’, according to the views of 11 Wall Street analysts compiled by MarketBeat as of August 28, 2024.
- Fourth-quarter revenue was $86.6 million, a 20% increase over the $72.4 million achieved during the corresponding quarter in 2023.
- The consensus view of analysts is that the stock could rise 29.08% over the coming year to $30.33.
- Thomas M. Siebel, the chairman and chief executive, has predicted strong revenue growth to help the company become a “profitable market leader.”
- Show Full Guide
Summary of the Latest C3.ai (AI) Stock Predictions
| C3.ai Stock Forecast (as of August 28, 2024) |
1-Year Forecast | 2025 (December) | 5-Year Forecast (August 2029) |
|---|---|---|---|
| MarketBeat | $30.33 | – | – |
| WalletInvestor | $21.29 | $15.35 | $8.69 |
| TipRanks | $32.33 | – | – |
AI Stock Price Prediction: How Has C3.ai Performed Lately?
Let’s kick off our C3.ai stock price prediction with a look at how the AI stock price has performed over the past year.
The performance chart shows that the AI stock price has certainly been on a volatile ride for most of 2024.
It started the year trading around the $29 mark before climbing to $36 by March and then plummeting to $20 by the middle of April.
Since then, the AI stock price has recovered, and as the stock market closed on August 27, 2024, it stood at $23.50.
The question now is what’s likely to happen to the C3.ai future stock price? Read on to find out about the key potential issues and the C3.ai stock predictions of Wall Street analysts.
Latest C3.ai News & Key Drivers to Consider
It’s important to factor in the latest news when making an accurate C3.ai stock forecast, and the company’s most recent results are at the top of this list.
Fourth Quarter Results: Increasing Revenue Growth
C3.ai announced that total revenue for the fourth quarter ending April 30, 2024, came in at $86.6 million. This was a 20% increase over the $72.4 million in the same period last year.
Subscription revenue was $79.9 million, which constituted 92% of the total revenue and was 41% higher than the $56.9 million figure in the fourth quarter of 2023.
As far as the full year 2024 was concerned, total revenue hit $310.6 million, which was 16% higher than the $266.8 million achieved a year ago.
Gross profit, meanwhile, came in at $178.6 million, representing a 57% gross margin. However, the GAAP net loss per share was $(2.34).
Positive Outlook for Demand
In a statement, Thomas M. Siebel, the company’s chief executive and chairman, noted that it was a strong quarter that “closed out a huge year” for the company. He said:
“This was our fifth consecutive quarter of accelerating revenue growth. Our fourth-quarter revenue grew by 20% year-over-year to $86.6 million, exceeding the top end of our guidance.”
He also remains optimistic about future opportunities and branded the interest in the company’s generative AI applications as “staggering.”
“Demand for Enterprise AI is intensifying, and our first to market advantage in Enterprise AI positions us well to capitalize on it,” he said. “Our Enterprise AI applications have been adopted across 19 industries, underscoring increasing market diversity.
Looking to the future, the company’s management expects strong revenue growth, which will be a key part of its future development.
“We plan to continue to invest in growth to build a long-term cash-generating profitable market leader in Enterprise AI,” it said in a statement.
AI Stock Price Prediction: What Are the Analysts’ Opinions?
There’s no doubt that AI is the big story in investment circles and has been for the last couple of years. This is illustrated by the stock price hikes of the biggest players.
However, the big question now is whether there’s further to go. Can investors still make money by putting their savings (and faith) into AI-related businesses?
Ben Yearsley, director of Fairview Investing, has his doubts.
He told Techopedia:
“There has been such a mania over the last year that it’s left the sector looking expensive. Obviously, many stocks shot up due to the future potential which is massive. But the key word is potential, and no one knows yet how pervasive and profitable AI will be.”
Yearsley sees price being the key downside as there are so many expensive stocks within this broad sector. Another is the unanswered questions:
- Will companies be as profitable as many are suggesting today?
- Will a different technology come along that renders AI worthless?
- Will politicians legislate away the benefits of AI?
“No one really knows how big the market size will actually be,” he added. “There are so many unknowns at this juncture.”
Jason Hollands, managing director of Bestinvest, believes AI has been one of the “dominant themes exciting investors,” as well as driving global and US equity indices.
However, he questions the likelihood of further price hikes.
He told Techopedia: “The stellar returns on AI-linked companies reflect the fact that investors have swiftly priced in many years of expected growth upfront.”
A lot will depend on what happens over the next couple of years.
“If the utilization of this technology and productivity improvements turn out to be lower or slower to come than expected, it could leave investors who pile in at current lofty valuations very exposed,” he added.
C3.ai Stock Price Prediction 2025: Where Will AI Go Next?
So, what are the C3.ai stock expectations of stock market analysts? Do they expect the AI stock price to rise or fall over the next few years?
The company is rated a ‘hold’ according to the C3.ai stock projections of 11 Wall Street analysts compiled by MarketBeat as of August 28, 2024. However, opinions vary.
Five have ‘hold’ recommendations in place, three see it as a ‘buy’ and one as a ‘strong buy,’ but two have it down as a ‘sell.’
The consensus AI price target is for it to rise 29.08% over the coming year to $30.33. The highest prediction is it may reach $40, while the most pessimistic suggests a fall to $20.
The following table shows the 10 latest analysts’ C3.ai stock predictions and their AI stock forecasts, as of August 28, 2024.
| Date | Analyst Firm | Action | Rating Change | Price Target | Percentage Change |
|---|---|---|---|---|---|
| 5/30/2024 | Northland Capmk | Upgrade | Hold ? Strong Buy | ||
| 5/30/2024 | Morgan Stanley | Boost Target | Underweight ? Underweight | $21.00 ? $23.00 | -19.58% |
| 5/30/2024 | Piper Sandler | Lower Target | Neutral ? Neutral | $33.00 ? $29.00 | +21.19% |
| 5/30/2024 | Canaccord Genuity Group | Lower Target | Hold ? Hold | $31.00 ? $30.00 | +25.37% |
| 5/30/2024 | Northland Securities | Upgrade | Market Outperform ? Outperform | $35.00 | +46.26% |
| 5/30/2024 | Needham & Company | Reiterated Rating | Hold | ||
| 5/29/2024 | Wedbush | Reiterated Rating | Outperform ? Outperform | $40.00 ? $40.00 | +42.20% |
| 2/29/2024 | Bank of America | Boost Target | Underperform ? Underperform | $18.00 ? $20.00 | -45.78% |
| 12/7/2024 | DA Davidson | Lower Target | Neutral ? Neutral | $30.00 ? $28.00 | +7.61% |
Elsewhere, the stock is rated as a ‘hold’ according to 11 analysts compiled by TipRanks. Their consensus view is the stock could rise 37.40% to $32.33 over the coming year.
However, according to the algorithmic forecasts of Wallet Investor, the AI stock price is likely to slip back to $21.30 over the coming year.
The site also has an AI stock forecast that predicts the price will have fallen to $8.70 by August 2029, which is pretty miserable news for potential investors. The platform doesn’t provide a C3.ai stock forecast for 2030.
However, anyone interested in a C3.ai stock long-term forecast needs to know that most analysts aren’t willing to look too many years ahead.
This means that it’s hard to find an accurate C3.ai stock price prediction for 2030 because there are too many potential variables over that timeframe.
Of course, these AI stock price predictions of stock market analysts and algorithmic forecasters may not be correct.
In fact, they are often wrong, so it makes sense to carry out your own C3.ai stock analysis, including looking into the broader industry, and other economic considerations.
The Bottom Line: Should I invest in C3.ai?
It’s fair to say that an accurate AI stock price prediction isn’t easy. There are many variables when it comes to the future of this technology and potential competitors.
The key is that putting money into any AI-related business is likely to be a volatile ride for investors as the sector continues to grow and develop.
That’s why the C3.ai stock expectations vary. The most optimistic believe the stock price could soar to $40, while the less enthusiastic analysts predict a slump to $20.
Prospective investors need to carry out their own research into the stock to decide whether or not this company is the right investment.
Conduct your own analysis, and always remember that your investment decision depends on your attitude to risk, your expertise in the stock market, the spread of your portfolio, and how comfortable you feel about losing money.
The information in this article does not constitute investment advice and is meant for informational purposes only.
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References
- C3 AI Announces Fiscal Fourth Quarter and Full Fiscal Year 2024 Financial Results (C3)
- We’re ready to serve you with industry-leading experience (C3)
- C3 AI Announces Fiscal Fourth Quarter and Full Fiscal Year 2024 Financial Results – C3.ai, Inc. (Ir.c3)
- C3.ai (AI) Stock Forecast and Price Target 2024 (Marketbeat)
- C3ai (AI) Stock Forecast, Price Targets and Analysts Predictions – TipRanks.com (Tipranks)
- C3.ai Inc – Class A Stock Forecast: down to 21.295 USD? – AI Stock Price Prediction, Long-Term & Short-Term Share Revenue Prognosis with Smart Technical Analysis (Walletinvestor)
